M/S. D.C.MILLS PVT.LTD., V. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE,

WP(C)/19662/2023

AI Insights

The case involves M/s. D.C. Mills Pvt. Ltd., the petitioner, who is contesting a penalty order and notice issued under the Income Tax Act, 1961, by the respondents, which include various officials from the Income Tax Department. The petitioner filed an appeal against the penalty and a stay petition, both of which were to be considered by the additional 5th respondent. The High Court of Kerala at Ernakulam, presided over by Justice Murali Purushothaman, heard the arguments and directed the expeditious handling of the appeal and stay petition, emphasizing the need for a timely resolution and deferral of recovery actions until the matter is resolved.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 672569 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 24-05-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Assessee Lawyers: V S AFSAL KHAN; GEO GEORGE; C K SAJI
• Keywords: Income Tax; Penalty order; Statutory Appeal; Stay Petition
• Section: 271(1)(c); 156

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN FRIDAY, THE 24TH DAY OF MAY 2024 / 3RD JYAISHTA, 1946 WP(C) NO. 19662 OF 2023 PETITIONER: M/S. D.C.MILLS PVT.LTD., REGD. OFFICE BUILDING NO.134/1, VALAVANADU, KALAVUR P. O, ALAPPUZHA DISTRICT, REPRESENTED BY ITS MANAGER ANILKUMAR. R., PIN – 688 522. BY ADVS. V.S.AFSAL KHAN GEO GEORGE GRIGORY C.K.SAJI RESPONDENTS: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE, INCOME TAX DEPARTMENT, WARD 1 & TPS, ALAPPUZHA, PIN – 688 501. 2 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1, ALAPPUZHA, PIN – 688 501. 3 THE ASSISTANT COMMISSIONER OF INCOME TAX, NATIONAL FACELESS ASSESSMENT CENTER, INCOME TAX DEPARTMENT, NEW DELHI, PIN – 110 034. 4 THE COMMISSIONER OF INCOME TAX (APPEALS), KOTTAYAM, PIN – 686 001. *ADDL. R5 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, NEW DELHI, PIN – 110 034. SRI. CYRIAC TOM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.05.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.19662 OF 2023 2 JUDGMENT Aggrieved by Ext.P12 penalty order and Ext.P13 notice under Section 156 of the Income T ax Act, 1961, the petitioner has preferred Ext.P14 appeal before the additional 5th respondent. The petitioner has also filed Ext.P15 stay petition. 2. When the writ petition came up for further consideration today, the petitioner limits their prayer for consideration of Ext.P14 appeal, expeditiously. 3. Heard the learned counsel for the petitioner and the learned Standing Counsel for the respondents. 4. Since Ext.P14 is a statutory appeal, there will be a direction to the additional 5th respondent to consider Ext.P15 stay petition, as expeditiously as possible. If there is delay in preferring Ext.P14 appeal, the additional 5th respondent shall intimate the petitioner about the same and the petitioner shall WP(C).No.19662 OF 2023 3 file necessary application for condonation of delay. If such an application for condonation of delay is filed, the same shall be considered, expeditiously and if the delay is liable to be condoned, the stay petition shall be heard, expeditiously. In case there is no delay in filing the appeal, Ext.P15 stay petition shall be considered, expeditiously. In any case, the entire exercise shall be completed within a period of three months from the date of receipt of a copy of this judgment. Till such time, all recovery steps pursuant to Exts.P12 and P13 shall be deferred. The writ petition is disposed of with the above direction. Sd/- MURALI PURUSHOTHAMAN JUDGE SPR WP(C).No.19662 OF 2023 4 APPENDIX PETITIONER’ S EXHIBITS :- EXHIBIT P1 TRUE COPY OF THE CERTIFICATE OF COIR AWARD 2003-2004. EXHIBIT P2 TRUE COPY OF THE CERTIFICATE OF COIR AWARD 2005-2006. EXHIBIT P3 TRUE COPY OF THE CERTIFICATE OF COIR AWARD 2007-2008. EXHIBIT P4 TRUE COPY OF THE AUDITED FINANCIAL STATEMENT OF THE COMPANY PREPARED BY K.K.PADMANABHAN PILLAI & COMPANY DATED 17.11.2021. EXHIBIT P5 TRUE COPY OF THE EXTRACT OF POSSESSION NOTICE OF THE STATE BANK OF INDIA ISSUED TO ONE OF THE DIRECTOR OF THE COMPANY. EXHIBIT P6 TRUE COPY OF THE ORDER NO.DMC3-391/2019 DATED 01.10.2020 OF THE DISTRICT COLLECTOR, ALAPPUZHA. EXHIBIT P7 TRUE COPY OF THE NOTICE DATED 3.12.2019 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER DATED 03.12.2019. EXHIBIT P8 TRUE COPY OF THE ASSESSMENT ORDER DATED 03.12.2019 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. EXHIBIT P9 TRUE COPY OF THE LETTER DATED 03.12.2019 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER. EXHIBIT P10 TRUE COPY OF THE NOTICE DATED 30.07.2021 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P11 TRUE COPY OF THE REPLY DATED 14.08.2021 FILED BY THE COMPANY BEFORE THE 3RD RESPONDENT. EXHIBIT P12 TRUE COPY OF THE ORDER DATED 24.09.2021 UNDER SECTION 271 (1)(C) OF THE INCOME TAX ACT, 1961 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER. WP(C).No.19662 OF 2023 5 EXHIBIT P13 TRUE COPY OF THE NOTICE DATED 24.09.2021 UNDER SECTION 156 OF THE INCOME TAX ACT, 1961 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER EXHIBIT P14 TRUE COPY OF THE APPEAL MEMORANDUM DATED 11.12.2021 FILED BY THE COMPANY BEFORE THE 4TH RESPONDENT. EXHIBIT P15 TRUE COPY OF THE STAY PETITION FILED O 13/07/2023 BY THE PETITIONER BEFORE THE APPELLATE AUTHORITY. RESPONDENTS EXHIBITS: NIL. "