ANNA ALUMINIUM COMPANY (P) LIMI V. THE DEPUTY COMMISSIONER OF INCOME TAX

WP(C)/5598/2020

AI Insights

Anna Aluminium Company (P) Limited filed a writ petition against the Deputy Commissioner of Income Tax and the Commissioner of Income Tax (Appeals) due to the delay in the consideration of their stay petition (Ext.P5) related to an assessment order (Ext.P1) under Section 143(3) of the Income Tax Act. The company argued that the delay allowed the assessing officer to proceed with recovering the disputed tax amount, which could render their statutory appeal ineffective. The High Court of Kerala, presided by Justice S.V. Bhatti, found merit in the petitioner's request and issued directions to expedite the consideration of the stay petition and temporarily halt any recovery actions.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 753956 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 26-02-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Assessee Lawyers: N NAIR; ANTONY JONES
• Keywords: Appellate Authority; Assessment Order; Income Tax; Stay Petition
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI WEDNESDAY, THE 26TH DAY OF FEBRUARY 2020 / 7TH PHALGUNA, 1941 WP(C).No.5598 OF 2020(Y) PETITIONER: ANNA ALUMINIUM COMPANY (P) LIMITED KP 111 847,KIZHAKKAMBALAM, ALUVA, ERNAKULAM-683 562, REPRESENTED BY ITS MANAGING DIRECTOR, SRI. BOBY M.JACOB BY ADVS. SRI.N.MURALEEDHARAN NAIR SRI.ANTONY JONES RESPONDENTS: 1 THE DEPUTY COMMISSIONER OF INCOME TAX CORPORATE CIRCLE, 1 (1), 4TH FLOOR, CENTRAL REVENUE BUILDING,I.S PRESS ROAD, KOCHI-682 018 2 THE COMMISSIONER OF INCOME TAX (APPEALS) INCOME TAX DEPARTMENT, G-51, PARAPILLY LANE, MANORAMA JUNCTION, GIRINAGAR, PANAMPILLY NAGAR, KOCHI-682 036 SC JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 WP(C).No.5598 OF 2020(Y) JUDGMENT Dated this the 26th day of February 2020 The petitioner filed appeal in Ext.P3 aggrieved by the orders of assessment in Ext.P1 made under Section 143(3) of the Income Tax Act. The petitioner has filed the appeal with Ext.P5 stay petition. The petitioner prays for appropriate direction to the appellate authority to consider and dispose of Ext.P5 expeditiously. 2. The case of petitioner is that either the mere filing of appeal or pendency of appeal does not amount to granting stay by the appellate authority. The delay in considering Ext.P5 stay petition results in the assessing officer taking steps for recovering the tax amount which is under challenge in Ext.P3. The assessing officer, if is successful in his effort the statutory appeal would become either academic or ineffective. It is further contended by the petitioner that in the manner the law provides for protecting the interest of appellant pending appeal, the orders on stay petition are passed expeditiously. Hence the writ petition. 3 WP(C).No.5598 OF 2020(Y) 3. Perused Exts. P1, P3 and P5. Prima facie I am satisfied that a case is made out for issuing necessary directions to the 2nd respondent to dispose of the stay petition in Ext.P5. Having regard to the limited prayer and the grounds referred to above, this Court is satisfied that the writ petition can be disposed of by this order: (a) The appellate authority/2nd respondent considers and disposes of Ext.P5 stay petition as early as possible, preferably within eight weeks from the date of receipt of copy of this judgment. (b) The respondents are directed not to take coercive steps or recover the amount determined in the orders under appeal for ten weeks from today. Sd/- S.V.BHATTI JUDGE hmh 4 WP(C).No.5598 OF 2020(Y) APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER PASSED BY 1ST RESPONDENT FOR THE YEAR 2017-18 DATED 23.12.2019 EXHIBIT P2 TRUE COPY OF THE DEMAND NOTICE DATED 23.12.2019 ISSUED BY 1ST RESPONDENT EXHIBIT P3 TRUE COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 14.01.2020 EXHIBIT P4 TRUE COPY OF THE LETTER ISSUED BY 1ST RESPONDENT DATED 12.02.2020 EXHIBIT P5 TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 17.02.2020 EXHIBIT P6 TRUE COPY OF THE LETTER ISSUED BY 1ST RESPONDENT DATED 19.02.2020 RESPONDENT'S/S EXHIBITS: NIL "