CHEERAN JOSE SHUNSON V. THE INCOME TAX OFFICER

WP(C)/11567/2020

AI Insights

In this writ petition, the petitioner, Cheeran Jose Shunson, sought the High Court's intervention to allow the operation of his bank account and to stay the demand raised by the Income Tax Department through an assessment order and a subsequent demand notice. The petitioner contested the assessment orders for the years 2015-16, 2016-17, and 2017-18, which had raised significant tax demands. Appeals and stay applications were filed against these orders. The court was approached to expedite the decision on the stay application and the appeal, highlighting the urgency due to the immediate financial impact of the demand notices.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 753359 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 12-06-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH; R S KALKURA
• Assessee Lawyers: HARISANKAR MENON
• Keywords: Assessment Order; Demand notice; Income Tax; Stay Application
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL FRIDAY, THE 12TH DAY OF JUNE 2020 / 22ND JYAISHTA, 1942 WP(C).No.11567 OF 2020(U) PETITIONER: CHEERAN JOSE SHUNSON PROPRIETOR, M/S. FOUR STAR ASSOCIATE, PERUMATTY GRAMA PANCHAYATH, PETTAMUKKU, KANNIMRI, PALAKKAD 676 305. BY ADV. SRI.HARISANKAR V. MENON RESPONDENTS: 1 THE INCOME TAX OFFICER WARD 2 (5), AAYKAR BHAVAN, SHAKTHANTHAMPURAN NAGAR, THRISSUR 686 001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), THRISSUR 686 021. 3 THE STATE BANK OF INDIA, ARTHAT BRANCH, THRISSUR 680 521, REPRESENTED BY ITS MANAGER. BY SRI.JOSE JOSEPH, SC SRI.R.S.KALKURA, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.06.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.11567 OF 2020(U) 2 JUDGMENT Dated this the 12th day of June 2020 The petitioner in the instant case has sought the indulgence of this Court for issuance of appropriate directions to respondents to permit the petitioner to operate the account held with respondent No.3 and as well as the stay of Ext. P1 assessment order and Ext.P4 notice, with a further prayer to dispose of Ext.P2 appeal and Ext.P3 stay petition within a reasonable period. In support of the aforementioned prayer, it is submitted that the petitioner is an assessee under the Income Tax Act, 1961. The assessment for the year 2016-17 was completed by the 1st respondent vide Ext.P1 order dated 24.12.2019 and a demand of Rs. 65,52,503/- was ordered. Petitioner preferred an appeal and stay application vide Exts. P2 and P3. For the other assessment years, i.e., 2015-16 and 2017-18 also similar orders have been passed, raising the demand and appeals have already been filed. However in the meantime, the petitioner received Ext.P4 demand notice raising, demand for all the three assessment years. The predicament of the petitioner is writ large, without adjudication of the applications for stay or disposal of the appeal, demand is being raised. WP(C).No.11567 OF 2020(U) 3 2. Issue notice before admission. Adv. Navaneeth N. Nath for Adv. Sri. Jose Joseph, learned Standing Counsel submits that the appeal and stay application has been taken by seniority but the authority would not be averse, in case, an appropriate direction is issued to the Commissioner of Income Tax (Appeals) to decide the application for stay within a reasonable time. 3. Having heard learned counsel for the parties and appraised the paper booksand without commenting any opinion on the merits of the matter, I dispose of the writ petition with a direction to the second respondent to decide Ext.P3 stay application filed in support of Ext.P2 appeal, as expeditiously as possible, within a period of two months from the date of receipt of a certified copy of this judgment, after affording an opportunity of hearing to the petitioner. Till such time, the operation of Ext.P4 demand notice pertaining to Assessment Year 2016-17 is ordered to be kept in abeyance. It is made clear that the interim order is only till the disposal of Ext.P3 stay application and not beyond that. Sd/- AMIT RAWAL JUDGE DCS WP(C).No.11567 OF 2020(U) 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2016-17 DATED 24.12.2018. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPLENDENT 2016-17 DATED 06.06.2019. EXHIBIT P3 COPY OF STAY PETITIONER FIELD BY THE PETITIONER BEFORE THE 2ND RESPONDENT 2016- 17 DATED 06.06.2019. EXHIBIT P4 COPY OF NOTICE ISSUED BY THE 3RD RESPONDENT DATED 16.03.2020. "