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527 orders · Page 2 of 11
The High Court, appreciating the consensus between the learned Senior Counsel for the assessee and the revenue, decided to remit the matters back to the Assessing Officer for a fresh decision on all aspects in accordance with law. The Court noted that both parties agreed to this course of action. The Court acknowledged that the assessee's argument, supported by the judgment in Asst. Commissioner of Income Tax (Exemptions) v Ahmedabad Urban Development Authority, suggested that the principal issues needed to be re-examined by the Assessing Officer. The revenue's contention that registration alone is not conclusive was also noted. Consequently, the questions raised in the appeals were answered in favour of the assessee for statistical purposes, and the matter was remitted for a fresh assessment. No specific issue was left undecided, as the entire matter was sent back for de novo consideration.
The High Court disposed of the writ petition by directing the 2nd respondent, the National Faceless Appeal Centre, to consider and pass orders on the petitioner's application for condonation of delay (Ext.P3). If the delay is condoned, the 2nd respondent is further directed to pass orders on the stay application (Ext.P4) after providing an opportunity of hearing to the petitioner. The 2nd respondent is to endeavor to pass these orders within two months of receiving a certified copy of the judgment. Crucially, until orders are passed on Exts.P3 and P4, any recovery proceedings pursuant to the assessment order (Ext.P1) shall be kept in abeyance. The Court clarified that if the delay is not condoned, there will be no requirement to pass a separate order on the stay application, and recovery proceedings can proceed. It was also clarified that the Appellate Authority would only need to pass orders on the merits of the appeal if the delay is condoned.
The High Court, following a previous judgment, held that the assessee firms were carrying on business in accordance with the rules and were entitled to be assessed as registered firms. The reassessment treating the status as AOP was not in order.
The High Court, appreciating the consensus between the learned Senior Counsel for the assessee and the revenue, decided to remit the matters back to the Assessing Officer for a fresh decision on all aspects in accordance with law. The Court noted that both parties agreed to this course of action. The Court acknowledged that the assessee's argument, supported by the judgment in Asst. Commissioner of Income Tax (Exemptions) v Ahmedabad Urban Development Authority, suggested that the principal issues needed to be re-examined by the Assessing Officer. The revenue's contention that registration alone is not conclusive was also noted. Consequently, the questions raised in the appeals were answered in favour of the assessee for statistical purposes, and the matter was remitted for a fresh assessment. No specific issue was left undecided, as the entire matter was sent back for de novo consideration.
The High Court, noting the consensus between the parties and referencing the Supreme Court's judgment in Asst. Commissioner of Income Tax (Exemptions) v Ahmedabad Urban Development Authority, decided to remit the matters back to the Assessing Officer for a fresh decision. The questions raised in the appeals were answered in favour of the assessee for statistical purposes.
The High Court of Kerala did not decide the merits of the case. Instead, it directed the appellate authority (2nd respondent) to consider and pass appropriate orders on the petitioner's appeal (Ext.P2) expeditiously. The Court emphasized that the appellate authority needs to consider the appeal on merits only if it decides to condone the delay of 26 days in filing the appeal. Until the disposal of the appeal, no coercive steps are to be initiated against the petitioner pursuant to the assessment order (Ext.P1). The judgment does not provide a finding on the validity of the Section 80P deduction or the applicability of the Mavilayi Service Co-operative Bank Ltd. judgment.
The High Court of Kerala disposed of the writ petition by directing the Commissioner of Income Tax (Appeals) to consider and pass orders on the petitioner's stay application (Ext.P3) expeditiously, and at any rate, within three months from the date of receipt of a certified copy of the judgment. The Court further directed that any demand pursuant to the assessment order (Ext.P1) shall be kept in abeyance until orders are passed on the stay application. The principle established is that the High Court can intervene to ensure timely consideration of stay applications by appellate authorities, especially when recovery is apprehended, and can grant interim relief by keeping the demand in abeyance.
The High Court, considering the facts and circumstances and the limited nature of the relief sought, disposed of the writ petition. The Court directed the 2nd respondent (Commissioner of Income Tax (Appeals)) to consider and pass orders on the stay application (Ext.P3) expeditiously, and at any rate, within three months from the date of receipt of a certified copy of the judgment. Furthermore, the Court ordered that any demand pursuant to the assessment order (Ext.P1) shall be kept in abeyance until orders are passed on the stay application. The High Court did not decide on the merits of the assessment or the appeal.
The High Court of Kerala did not decide the substantive issues of the appeal. Instead, it disposed of the writ petition by directing the 1st respondent, the Commissioner of Income Tax (Appeals), to consider and pass appropriate orders on the petitioner's pending appeal (Ext.P3) expeditiously. The Court also ordered that no coercive steps shall be initiated against the petitioner pursuant to the assessment order (Ext.P1) and demand notice (Ext.P2) until the disposal of the appeal. The principle derived from this judgment is that when an appeal is pending before the appellate authority, a writ petition seeking to quash an assessment order can be disposed of by directing a time-bound disposal of the appeal, with a stay on coercive recovery measures.
The High Court expressed surprise at the 16-year delay in disposing of the appeal after remand. Considering the circumstances, the Court directed the 2nd respondent (Commissioner of Income Tax (Appeals) - V) or the jurisdictional first Appellate Authority to consider and dispose of appeal No.ITA117/EKM/Dv.II/97-98 expeditiously, within six months from the date of receipt of the judgment. The Court also directed that Ext.P3 and all coercive proceedings against the petitioner for assessment year 1992-93 shall be kept in abeyance until a decision is taken on the appeal. No specific finding was made on the merits of the original assessment or appeal, as the writ petition was disposed of on procedural grounds.
The High Court of Kerala, in its writ jurisdiction, did not decide the merits of the case. Instead, it directed the 2nd respondent (National Faceless Appeal Centre) to consider and pass appropriate orders on the petitioner's appeal (Ext.P2) expeditiously. The Court emphasized that the appellate authority needs to consider the appeal on merits only if it decides to condone the delay of 27 days in filing the appeal. Until the disposal of the appeal, no coercive steps are to be initiated against the petitioner pursuant to the assessment order (Ext.P1). The High Court did not express any opinion on the validity of the assessment order or the applicability of the Supreme Court judgment cited by the petitioner.
The High Court held that the Income Tax Appellate Tribunal had not omitted to consider any of the grounds or arguments presented by the assessee. The court found that the assessee's case did not fall under the heads of relief of the poor, education, or medical relief. The Tribunal's consideration of the assessee's activities as not a charitable purpose, particularly the last limb of Section 2(15), was deemed correct. The court agreed with the Tribunal's conclusion and reasoning, stating that the questions formulated by the assessee were not substantial questions of law but rather findings of fact. Therefore, the questions were answered in favour of the revenue and against the assessee. The appeals were dismissed.
The High Court of Kerala, in its writ jurisdiction, did not decide the merits of the case. Instead, it acknowledged that the petitioner had already filed an appeal (Ext.P3) before the 1st respondent (Commissioner of Income Tax (Appeals)) challenging the assessment order (Ext.P1). The Court deemed it appropriate to dispose of the writ petition by directing the Appellate Authority to consider the pending appeal in a time-bound manner. Consequently, the 1st respondent was directed to consider and pass appropriate orders on Ext.P3 as expeditiously as possible. Furthermore, the Court ordered that no coercive steps shall be initiated against the petitioner pursuant to Ext.P1 assessment order until the disposal of the appeal. The specific finding on the Section 80P deduction or the applicability of the Mavilayi Service Co-operative Bank judgment was left for the appellate authority to decide.
The High Court of Kerala, in its judgment dated 05.12.2022, did not decide the merits of the case. Instead, it acknowledged that the petitioner had already filed an appeal (Ext.P3) before the Commissioner of Income Tax (Appeals) (the first respondent) challenging the assessment order. The Court found it appropriate to dispose of the writ petition by directing the Appellate Authority to consider and pass appropriate orders on the pending appeal expeditiously. The Court also granted a stay on coercive steps against the petitioner pursuant to the assessment order until the disposal of the appeal. Therefore, no specific finding on the Section 80P deduction or the applicability of the Supreme Court judgment was made by the High Court in this order. The operative direction was to expedite the appeal process.
The High Court upheld the Tribunal's decision that the assessee's microfinancing activities did not qualify as a charitable purpose under Section 2(15) of the Income Tax Act. The court found that the issues raised were essentially questions of fact, not substantial questions of law.
The High Court of Kerala disposed of the writ petition by directing the 3rd respondent (Commissioner of Income Tax (Appeals)) to consider and pass orders on the stay petition (Ext.P3) filed in the appeal (Ext.P2) as expeditiously as possible, and at any rate within a period of three months from the date of receipt of a certified copy of the judgment. The Court further directed that further proceedings for recovery of any amount due under the penalty order (Ext.P1) shall be kept in abeyance until orders are passed on the stay petition. The Court noted the limited nature of the relief sought by the petitioner.
The High Court disposed of the writ petition by quashing Ext.P11 and Ext.P9 concerning the assessment year 1992-93, as the entire demand for this year had been settled under the Direct Tax Vivad Se Vishwas Rules, 2020. The Court held that the petitioner is not liable for the tax demand for 1992-93. Regarding the assessment year 1993-94, the Court left all contentions raised by the petitioner open and permitted the department to take appropriate steps based on the decision of the Appellate Tribunal. The petitioner was also granted liberty to take appropriate steps in accordance with law based on the Tribunal's decision. The operative direction was to quash the impugned orders for AY 1992-93 and leave the matter for AY 1993-94 to be decided by the Tribunal.
The High Court of Kerala disposed of the writ petition with a direction to the 2nd respondent (Income Tax Officer) to grant credit for all amounts paid by the petitioner as self-assessment tax in respect of assessment year 2015-16. The Court further directed that any recovery of amount due, pursuant to the assessment order (Ext.P8), should only proceed if a demand exists after giving credit for the self-assessment tax paid. The Court did not explicitly address the issue of natural justice violation or failure to consider the return of income, implicitly resolving it by directing the credit, which would negate any demand.
The High Court observed that there appears to be merit in the petitioner's contention that the interest demanded under Section 201(1A) and Section 220(2) is excessive, considering the minimal principal demand for the assessment years in question. For instance, the principal demand for assessment year 2011-12 was Rs.39,853, while the total demand including interest reached Rs.41,44,814. The Court directed the 1st respondent (Income Tax Officer) to carefully consider the rectification petition (Ext.P12) and pass orders thereon, taking into account the petitioner's contentions and the observations made in the judgment. Proceedings for recovery of amounts payable under Exts.P8, P9, and P10 orders were ordered to be kept in abeyance until orders are passed on Ext.P12. The issue of the maintainability of the revision petition under Section 264 was not decided on merits, as the matter was remitted for consideration of the rectification petition.
The High Court of Kerala disposed of the writ petition by directing the 2nd respondent (National Faceless Appeal Centre, Delhi) to consider and pass orders on the petitioner's stay petition (Ext.P4) within the shortest possible time, after providing the petitioner an opportunity to be heard. Pending the decision on the stay petition, any recovery proceedings for amounts due under the assessment order (Ext.P1) were to be kept in abeyance. The Court clarified that orders on the stay petition should be passed on merits only if the 2nd respondent finds sufficient grounds to condone the delay in filing the appeal. The issue of whether the delay in filing the appeal should be condoned was implicitly left to be decided by the 2nd respondent.
The High Court disposed of the writ petition, directing the 2nd respondent (National Faceless Appeal Centre, Delhi) to consider and pass orders on the stay petition (Ext.P3) within the shortest possible time, after providing the petitioner an opportunity of being heard. The Court further directed that until orders are passed on the stay petition, any proceedings to recover amounts due under the assessment order (Ext.P1) shall be kept in abeyance. The Court considered the limited nature of the relief sought by the petitioner. No specific finding was made on the merits of the assessment or the stay petition itself, as the order was procedural.
The High Court of Kerala, while acknowledging the petitioner's grievance regarding the assessment orders and the pending similar issue, disposed of the writ petition. The Court noted that the petitioner had already availed the statutory remedy by filing appeals against the assessment orders before the National Faceless Appeal Centre (NFAC). Therefore, the Court directed that further proceedings for the recovery of any amounts due under the assessment orders should be kept in abeyance until a decision is taken by the NFAC on the stay petitions filed by the petitioner in their appeals. The petitioner was also permitted to raise all their contentions before the Appellate Authority. No specific finding was made on the validity of the assessment orders themselves, as the matter was deferred to the appellate process.
The High Court of Kerala, while hearing the writ petition, noted that the petitioner had already filed an appeal (Ext.P4) against the assessment order (Ext.P2) before the Income Tax Appellate Tribunal, and this appeal was pending consideration. The Court did not decide on the merits of the petitioner's claim regarding Section 80P or the applicability of the Supreme Court's judgment in Mavilayi Service Co-operative Bank Ltd. Instead, the Court deemed it fit to dispose of the writ petition by directing the Income Tax Appellate Tribunal (referred to as the 2nd respondent) to consider and pass appropriate orders on the pending appeal expeditiously, within a period of 2 months from the date of receipt of a copy of the judgment. Furthermore, the Court directed that no coercive steps shall be initiated against the petitioner pursuant to the assessment order until the disposal of the appeal. The primary finding is procedural: to expedite the resolution of the appeal.
The High Court of Kerala did not decide the merits of the appeal. Instead, it noted that the petitioner had already preferred an appeal (Ext.P3) before the Commissioner of Income Tax (Appeals), which was pending. Consequently, the Court deemed it appropriate to dispose of the writ petition by directing the Commissioner of Income Tax (Appeals) to consider and pass appropriate orders on the appeal expeditiously, within a period of 2 months from the date of receipt of a copy of the judgment. Furthermore, the Court ordered that no coercive steps shall be initiated against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The issue of the validity of the assessment order and the deduction under Section 80P was therefore left undecided by the High Court in this writ petition.
The High Court of Kerala quashed the notice (Ext.P4) issued under Section 148A of the Income Tax Act, 1961. The reasoning was that the notice was issued based on a PAN which incorrectly identified the petitioner as a firm, contrary to their actual status as a co-operative society. The Court held that this misidentification rendered the notice invalid. The operative direction was to quash the notice, while explicitly allowing the respondent department to initiate fresh proceedings in accordance with law. Additionally, the Court directed the competent authority to decide on the petitioner's request for cancellation of the earlier, erroneous PAN within three months of receiving a certified copy of the judgment.
The High Court of Kerala did not decide the merits of the appeal. Instead, it directed the 3rd respondent, the Commissioner of Income Tax (Appeals), to consider and pass appropriate orders on the petitioner's pending appeal (Ext.P3) expeditiously, within a period of 2 months from the date of receipt of a copy of the judgment. The Court also ordered that no coercive steps shall be initiated against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The primary issue of the Section 80P deduction and the applicability of the Mavilayi Service Co-operative Bank Ltd. judgment were thus left to be decided by the appellate authority.
The High Court held that an erroneous assessment occasioned by ignoring a binding judgment of the Supreme Court cannot be dismissed as an order against which only an appellate remedy lies. The Court found that the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. and others v. Commissioner of Income Tax and another (431 ITR 1) was not considered while finalizing the assessment in WP(C) No. 34334/2022. Furthermore, the decision in Peroorkada Service Co-Operative Bank Ltd. (442 ITR 141) was not considered when denying the benefit of deduction under Section 80P(ii)(d) in WP(C) Nos. 34316/2022 and 33413/2022. Consequently, the assessment orders were deemed liable to be set aside. The Court quashed the impugned assessment orders and remanded the matters to the respective assessing authorities (National Faceless Assessment Centre) for fresh consideration. The assessing authorities are directed to take into account the aforementioned judgments and afford the petitioners an opportunity of being heard. The Court relied on its own Division Bench judgment in M/s. Poonjar Service Co-operative Bank Ltd. v. Income Tax Officer.
The High Court of Kerala did not decide on the merits of the case. Instead, it disposed of the writ petition by issuing a direction to the 3rd respondent (Commissioner of Income Tax (Appeals)) to consider and pass appropriate orders on the pending appeal (Ext.P3) expeditiously, within a period of 2 months from the date of receipt of a copy of the judgment. The Court also ordered that no coercive steps shall be initiated against the petitioner pursuant to Ext.P1 until the disposal of the appeal. The primary issue regarding the validity of the assessment order and the applicability of the Mavilayi judgment was left to be decided by the appellate authority.
The High Court of Kerala, while acknowledging the pendency of the petitioner's appeal (Ext.P3) before the Income Tax Appellate Tribunal (1st respondent), deemed it appropriate to dispose of the writ petition by directing the Tribunal to consider the appeal. The Court directed the 1st respondent (Income Tax Appellate Tribunal) to consider and pass appropriate orders on Ext.P3 appeal expeditiously, within a period of 2 months from the date of receipt of a copy of the judgment. Furthermore, the Court ordered that no coercive steps shall be initiated against the petitioner pursuant to Ext.P1 assessment order until the disposal of the appeal. The Court did not decide on the merits of the Section 80P deduction claim itself, but rather focused on expediting the appellate process.
The High Court allowed the writ petition, quashing the notices issued under Sections 148 and 148A of the Income Tax Act, 1961 (Exts. P1 and P4). The Court found that there was no record to suggest that the procedure contemplated under Section 148A of the Act was followed before issuing the notice under Section 148. The revenue's admission that the delivery of the Section 148A notice was not verifiable and that the postal copy was returned undelivered supported the assessee's claim of procedural non-compliance. The Court held that the proceedings initiated were incompetent and contrary to law. However, the quashing was made without prejudice to the right of the Department to initiate fresh proceedings in accordance with law. The Court did not grant permission to the respondent Department to continue with fresh proceedings, emphasizing that any such proceedings must be authorized by law.
The High Court of Kerala did not decide the merits of the case. Instead, it noted that the petitioner had already preferred an appeal (Ext.P3) before the Commissioner of Income Tax (Appeals) (3rd respondent), which was pending. Therefore, the Court deemed it appropriate to dispose of the writ petition by directing the Commissioner of Income Tax (Appeals) to consider and pass appropriate orders on the pending appeal expeditiously, within a period of 2 months from the date of receipt of a copy of the judgment. The Court also directed that no coercive steps shall be initiated against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The principle that can be cited is that when an appeal is pending before the appellate authority, the High Court may direct expeditious disposal of the appeal and grant interim protection.
The High Court of Kerala disposed of the writ petition by directing the National Faceless Appeal Centre (NFAC) to provide a link to the petitioner for uploading the stay petition in relation to their appeal (Ext.P2). This link was to be provided within ten days from the date of the order. Upon receiving the link, the petitioner was granted two weeks to file the stay petition. The Court further directed that further proceedings for recovery of the amount due under the assessment order (Ext.P1) would be kept in abeyance until a decision was taken on the stay petition to be filed by the petitioner. The Court did not decide on the merits of the stay petition itself, but facilitated its filing.
The High Court of Kerala disposed of the writ petition by directing the National Faceless Appeal Centre (NFAC) to provide a link to the petitioner for uploading their stay petition in connection with their appeal (Ext.P2). This link is to be provided within ten days from the date of the order. Upon receiving the link, the petitioner is to file the stay petition within two weeks. The court further directed that if the stay petition is filed within the stipulated time, all recovery proceedings for the amount due under the order of assessment (Ext.P1) shall be kept in abeyance until a decision is taken on the stay petition. The court did not decide on the merits of the stay petition itself, but rather facilitated its filing.
The High Court of Kerala, while acknowledging the pendency of the appeal (Ext.P3) before the Income Tax Appellate Tribunal (1st respondent), deemed it appropriate to dispose of the writ petition by directing the Tribunal to consider the appeal expeditiously. The Court directed the 1st respondent (Commissioner of Income Tax (Appeals)) to consider and pass appropriate orders on Ext.P3 appeal within a period of 2 months from the date of receipt of a copy of the judgment. Furthermore, the Court ordered that no coercive steps shall be initiated against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The Court did not decide on the merits of the Section 80P deduction claim itself, but rather on the procedural aspect of ensuring timely adjudication of the appeal.
The High Court of Kerala disposed of the writ petition by directing the National Faceless Appeal Centre (NFAC) to provide a link to the petitioner for uploading the stay petition in connection with their appeal (Ext.P2). This link is to be provided within ten days from the date of the order. Upon receiving the link, the petitioner is to file the stay petition within two weeks. The Court further directed that all recovery proceedings for the amount due under the order of assessment (Ext.P1) shall be kept in abeyance until a decision is taken on the stay petition to be filed by the petitioner. The Court did not decide on the merits of the stay petition itself, but facilitated its filing and ensured a temporary stay of recovery pending its disposal.
The High Court of Kerala disposed of the writ petition by directing the National Faceless Appeal Centre (NFAC) to provide a link to the petitioner for uploading the stay petition in connection with their appeal (Ext.P2). This link was to be provided within ten days from the date of the order. Upon receiving the link, the petitioner was directed to file the stay petition within two weeks of receiving the link. The court further ordered that if the stay petition was filed within the stipulated time, further proceedings for the recovery of the amount due under the assessment order (Ext.P1) would be kept in abeyance until a decision was taken on the stay petition. The court did not decide on the merits of the stay petition itself, but rather on the procedural aspect of enabling its filing.
The High Court of Kerala did not decide the merits of the case. Instead, it noted that the petitioner had already preferred an appeal (Ext.P2) before the 2nd respondent (National Faceless Appeal Centre) and that the appeal was pending. Therefore, the Court deemed it fit to dispose of the writ petition by directing the Appellate Authority to consider the appeal in a time-bound manner. The Court directed the 2nd respondent to consider and pass appropriate orders on Ext.P2 as expeditiously as possible. Furthermore, the Court ordered that no coercive steps shall be initiated against the petitioner pursuant to Ext.P1 assessment order until the disposal of the appeal. The issue of the validity of the assessment order and the applicability of the Supreme Court judgment was left to be decided by the appellate authority.
The High Court of Kerala disposed of the writ petitions by directing the respondents to process the refunds due to the petitioners without any further delay. The court mandated that the refunds must be issued within a period of two months from the date of receipt of a certified copy of the judgment. Furthermore, the court directed that if the petitioners are entitled to any interest on account of the delayed payment of refund, such interest shall also be granted to them. The court acknowledged the submissions of the revenue regarding technical defects and the process at the Centralized Processing Centre, Bengaluru, but emphasized the need for prompt resolution. The issue of the exact quantum of interest, if any, was implicitly left to be determined as per the entitlement of the petitioners.
The High Court of Kerala did not decide the merits of the case. Instead, it directed the Appellate Authority (the 2nd respondent, National Faceless Appeal Centre) to consider and pass appropriate orders on the petitioner's pending appeal (Ext.P2) expeditiously. The Court acknowledged that the appeal was already preferred against the assessment order (Ext.P1). As an interim measure, the Court ordered that no coercive steps shall be initiated against the petitioner pursuant to the assessment order until the disposal of the appeal. The core of the decision is procedural, focusing on the timely resolution of the appeal rather than adjudicating the tax dispute itself.
The High Court held that there was considerable merit in the petitioner's contention. The Court found that since the claim for deduction under Section 80P was decided based on a High Court Full Bench judgment that was subsequently reversed by the Supreme Court in Mavilayi Service Co-operative Bank Ltd v. CIT, the assessment order (Ext.P4) was liable to be set aside. The Court directed the Assessing Officer to pass fresh assessment orders after considering the Supreme Court's judgment and affording the petitioner a further opportunity of hearing. The operative direction was to quash Ext.P4 to enable reconsideration. No specific issue was left undecided.
The High Court disposed of the writ petition by directing the 2nd respondent (Income Tax Appellate Tribunal) to consider and pass orders on the stay petition (Ext.P4) after providing the petitioner an opportunity of being heard. Crucially, the Court ordered that any steps initiated for the recovery of amounts due under the assessment order (Ext.P1) shall be kept in abeyance until orders are passed on the stay petition. The Court did not decide on the merits of the assessment or the stay petition itself, but rather on the procedural aspect of ensuring the stay petition is considered before recovery is pursued.
The High Court disposed of the writ petition with specific directions. The 2nd respondent (Income Tax Appellate Tribunal) was directed to consider and pass orders on Ext.P4 stay petition after providing the petitioner an opportunity of being heard. Crucially, the Court ordered that any steps initiated for the recovery of amounts due under Ext.P1 order of assessment shall be kept in abeyance until orders are passed on the stay petition. The core principle here is the preservation of the status quo pending the disposal of a stay application, ensuring that the assessee is not prejudiced by recovery actions before their plea for a stay is adjudicated.
The High Court of Kerala, while acknowledging that the petitioner had already filed an appeal (Ext.P3) before the first respondent (Commissioner of Income Tax (Appeals)) challenging the assessment order (Ext.P1), deemed it appropriate to dispose of the writ petition by directing the Appellate Authority to consider the pending appeal. The Court directed the first respondent to consider and pass appropriate orders on Ext.P3 as expeditiously as possible. Furthermore, the Court ordered that no coercive steps shall be initiated against the petitioner pursuant to Ext.P1 assessment order until the disposal of the appeal. The Court did not decide the merits of the petitioner's claim regarding Section 80P or the applicability of the Mavilayi Service Co-operative Bank Ltd. judgment.
The High Court of Kerala did not decide the merits of the appeal. Instead, it directed the Commissioner of Income Tax (Appeals) to consider and pass appropriate orders on the petitioner's appeal (Ext.P3) expeditiously, within a period of 2 months from the date of receipt of a copy of the judgment. The Court also ordered that no coercive steps shall be initiated against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The principle derived is that when an appeal is pending before the appellate authority and a relevant Supreme Court judgment has been pronounced, the appellate authority should consider the appeal in a time-bound manner, and interim relief against coercive steps may be granted.
The High Court disposed of the writ petition by directing that if the petitioner files an appeal against the assessment order (Ext.P6) before the First Appellate Authority within two weeks from the date of receipt of a certified copy of the judgment, the period during which the writ petition was pending (from 28.10.2022 to 22.11.2022) shall be excluded for the purpose of determining the limitation period for filing the appeal. If the appeal is filed within this extended period and found to be within time after exclusion, any recovery pursuant to the assessment order shall be kept in abeyance until the appeal is decided by the First Appellate Authority. The court did not decide on the merits of the deductions claimed by the petitioner.
The High Court did not decide the substantive issues raised by the petitioner regarding the validity of the assessment order and the applicability of the Supreme Court judgment. Instead, the Court noted that the petitioner had already filed an appeal (Ext.P3) before the Commissioner of Income Tax (Appeals) (1st respondent), which was pending. Therefore, the Court deemed it appropriate to dispose of the writ petition by directing the 1st respondent to consider and pass appropriate orders on Ext.P3 expeditiously, within a period of 2 months from the date of receipt of a copy of the judgment. The Court also directed that no coercive steps would be initiated against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. No issue was expressly left undecided; the Court deferred the decision on the merits to the appellate authority.
The High Court of Kerala did not decide the merits of the appeal. Instead, it directed the Commissioner of Income Tax (Appeals) (1st respondent) to consider and pass appropriate orders on the pending appeal (Ext.P3) expeditiously, within a period of 2 months from the date of receipt of a copy of the judgment. The Court also ordered that no coercive steps shall be initiated against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The primary focus was on ensuring a time-bound resolution of the appeal, rather than adjudicating the correctness of the assessment or the applicability of the Supreme Court's ruling.
The High Court held that Ext.P2 order did not suffer from any vice requiring it to be set aside under Article 226 of the Constitution. The court found merit in the revenue's contention that the petitioner's written submissions were considered, even if an oral hearing was not granted. Furthermore, the court observed that the 2nd respondent had not relegated the consideration of the stay petition to the assessing officer but had only directed the assessing officer to calculate the amounts payable as a condition for stay, as per the terms of Ext.P2. However, faced with the petitioner's submission that the condition for stay was onerous, the court, in order to shorten litigation and avoid further controversy, modified the condition. The court directed that the demands arising out of the assessment order for assessment year 2014-2015 shall remain stayed pending disposal of the appeal, provided the petitioner pays a sum of Rs.1,00,00,000/- in three equal installments commencing from 15.12.2022.
The High Court did not decide the merits of the appeal. Instead, it directed the Income Tax Appellate Tribunal (1st respondent) to consider and pass appropriate orders on the petitioner's pending appeal (Ext.P3) expeditiously, within a period of 2 months from the date of receipt of a copy of the judgment. The Court also ordered that no coercive steps shall be initiated against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The High Court did not expressly leave any issue undecided, but rather deferred the decision on the substantive issues to the Tribunal.
The High Court of Kerala did not decide the merits of the case. Instead, it disposed of the writ petition by directing the Income Tax Appellate Tribunal (1st respondent) to consider and pass appropriate orders on the petitioner's pending appeal (Ext.P3) expeditiously, within a period of 2 months from the date of receipt of the judgment. The Court also directed that no coercive steps shall be initiated against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The primary finding of the Court was procedural: the appeal pending before the Tribunal should be decided promptly. The substantive issues regarding the Section 80P deduction and the applicability of the Supreme Court judgment were left for the Tribunal to decide.