ALKANZ MONEY EXCHANGE PRIVATE LIMITED V. INCOME TAX OFFICER WARD 1 (1), THRISSUR

WP(C)/8323/2022

AI Insights

The case involves Alkanz Money Exchange Private Limited, the petitioner, who challenged the enforcement of a demand notice (Ext.P10) for payment under an assessment order (Ext.P1) while an appeal (Ext.P3) against the order was pending. The petitioner had previously uploaded written submissions in response to a hearing notice during the COVID-19 pandemic, but no final order had been issued on the appeal for over 18 months. The respondents argued that the petitioner had failed to comply with a previous court directive to deposit 20% of the demanded amount. The court found that the delay in issuing a final order on the appeal, despite the petitioner's compliance with procedural requirements, warranted a stay on the recovery proceedings until the appeal is resolved.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 760374 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 18-03-2022
• Assessment Year: misc
• Other Referred Cases: W.P.(C) No. 6141 of 2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: M P AHAMED; AKHIL MANITHOTTYIL
• Keywords: Appeal; Assessment Order; Coercive Proceedings; Covid-19; E-proceedings; Income Tax
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS FRIDAY, THE 18TH DAY OF MARCH 2022 / 27TH PHALGUNA, 1943 WP(C) NO. 8323 OF 2022 PETITIONER: ALKANZ MONEY EXCHANGE PRIVATE LIMITED 551, WARD XII KALLIPARAMBIL MEMORIAL BUILDING, KAIPAMANGALAM P.O MOONNUPEEDIKA, THRISSUR 680681, KERALA INDIA, PIN - 680681 BY ADVS. M.P.SHAMEEM AHAMED AKHIL PHILIP MANITHOTTIYIL RESPONDENTS: 1 INCOME TAX OFFICER WARD 1 (1), THRISSUR AAYAKAR BHAVAN, INCOME TAX OFFICE, SHAKTHANTHAMPURAN NAGAR, THRISSUR, KERALA - 680001, PIN - 680001 2 THE COMMISSIONER OF INCOME TAX (APPEALS), THRISSUR AAYAKAR BHAVAN, INCOME TAX OFFICE, SHAKTHANTHAMPURAN NAGAR, THRISSUR, KERALA - 680001, PIN - 680001 3 THE TAX RECOVERY OFFICER, KOZHIKKODE AAYAKAR BHAVAN, NORTH BLOCK, NEW ANNEXE BUILDING, MANANCHIRA, KOZHIKODE - 673001, PIN - 673001 OTHER PRESENT: SRI.JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.03.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 8323 OF 2022 BECHU KURIAN THOMAS, J. ----------------------------------------- W.P.(C) No. 8323 of 2022 ---------------------------------------- Dated this the 18th day of March, 2022 JUDGMENT Aggrieved by Ext.P1 order for the assessment year 2017-18, petitioner preferred an appeal as Ext.P3 before the 2nd respondent on 20-01-2020. In the meantime, due to the outbreak of Covid-19 pandemic and the financial difficulties, petitioner was called upon to submit its written submissions utilizing the e-proceedings facility on or before 18/9/2020. Petitioner alleges to have uploaded its written submission as evidenced by Ext.P7 on 3/10/2020. The learned counsel for the petitioner pointed out that despite uploading the written submissions of the petitioner as directed by the respondents, no orders on the appeal have been issued for the last more than 18 months. 2. According to the learned counsel, while the appeal is thus pending consideration, petitioner is served with Ext.P10 notice demanding payment of amounts imposed WP(C) NO. 8323 OF 2022 under Ext.P1 order of assessment. The learned counsel submits that the enforcement of the amount due under Ext.P1 will create great prejudice to the petitioner, especially when the appeal is pending consideration. 3. Sri.Jose Joseph, the learned Standing Counsel for respondents, on the other hand contended that petitioner had already approached this Court in W.P.(C)No.6141 of 2020, wherein the direction of the income tax officer to deposit 20% of the amount demanded was found to be reasonable. In spite of the aforesaid judgment, petitioner had failed to deposit the said amount and it is in such circumstances that the respondents were compelled to initiate proceedings for enforcing the amount due under Ext.P1. 4. I have considered the rival contentions. After the judgment in W.P.(C)No.6141 of 2020, severe restrictions due to Covid-19 pandemic were introduced, including lock- down. Situation changed thereafter. This fact was noticed by the Income Tax Department itself, as seen from Ext.P6 notice, wherein they directed the petitioner to submit the WP(C) NO. 8323 OF 2022 written submissions electronically in the e-proceedings facility on or before 18/09/2020. Though there was few days delay, petitioner had uploaded the written submissions by 3/10/2020. In such an instance, Appellate Authority was bound to pass final orders in the appeal. However, it is submitted that till date, final order in the appeal has not been issued. 5. Taking into consideration the aforesaid circumstances, I am of the view that, this is a fit case where the circumstances warrant a direction to dispose of the appeal itself in a time bound manner. As already more than 18 months have elapsed since the petitioner was directed by the respondents to upload the hearing note which it had in fact done, and even after that, the respondents failed issue the final order in the appeal, interests of justice demands that recovery proceedings ought not to be pursued in the meantime. 6. Treating this as a peculiar circumstance, I am of the view that the respondent or the Competent Appellate WP(C) NO. 8323 OF 2022 Authority must be directed to consider and dispose of the appeal in a time bound manner. 7. Accordingly, I direct the 2nd respondent or the Competent Appellate Authority to consider and dispose of Ext.P3 appeal after granting an opportunity of hearing to the petitioner, as expeditiously as possible, at any rate, within three months from the date of receipt of a copy of this judgment. Till then all coercive proceedings against the petitioner pursuant to Ext.P10 will be kept in abeyance. The writ petition is disposed of. Sd/- BECHU KURIAN THOMAS JUDGE AJM WP(C) NO. 8323 OF 2022 APPENDIX OF WP(C) 8323/2022 PETITIONER’S EXHIBITS : Exhibit 1 COPY OF THE ASSESSMENT ORDER DATED 20.12.2019 FOR THE ASSESSMENT YEAR 2017-18. Exhibit P2 COPY OF THE DEMAND NOTICE DATED 20.12.2019. Exhibit P3 COPY OF THE APPEALS FILED IN FORM NO. 35 BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS). Exhibit P4 COPY OF THE ORDER DATED 30.01.2020 PASSED BY THE INCOME TAX OFFICER WARD 1 (1), THRISSUR. Exhibit P5 COPY OF THE JUDGMENT DATED 02.03.2020 IN WP (C) NO. 6141/2020. Exhibit P6 COPY OF THE HEARING NOTICE DATED 07.09.2020 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS), THRISSUR. Exhibit P7 COPY OF THE SUBMISSIONS FILED IN RESPONSE TO EXHIBIT P6 HEARING NOTICE ALONG WITH THE SCREENSHOT FROM THE E- FILING PORTAL. Exhibit P8 COPY OF THE PETITION FOR STAY AND DELAY CONDONATION APPLICATION FILED BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS). Exhibit P9 COPY OF THE PRINTOUT SHOWING THE REGISTRATION OF COMPLAINT NO. CBODT/E/2022/06447. Exhibit P10 COPY OF THE NOTICE OF DEMAND DATED 03.03.2022 ISSUED BY THE TAX RECOVERY OFFICER, KOZHIKKODE. //TRUE COPY// PA TO JUDGE "