M/S FACTUM GRANITES PVT LTD V. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/16572/2024

AI Insights

The case involves M/s Factum Granites Pvt Ltd, represented by its director, Saji K. Alias, who filed a writ petition against the Commissioner of Income Tax (Appeals). The petitioner challenged the recovery proceedings following an assessment order (Ext.P4) for the assessment year 2021-2022, claiming that a higher amount had already been seized from them (as per Ex.P8). The petitioner had submitted an appeal (Ext.P5) and a stay petition (Ext.P6), both pending before the respondent. The court, referencing a similar case (Ext.P10), decided to stay the recovery proceedings until the stay petition is resolved.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 764946 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 25-04-2024
• Assessment Year: misc
• Other Referred Cases: W.P.(C) No. 14760/2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: NAVANEETH NAIR
• Assessee Lawyers: DINESH SHENOY; VISHAKHA
• Keywords: Income tax assessment; Recovery proceedings; Stay Petition; Seizure Inventory
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE ZIYAD RAHMAN A.A. THURSDAY, THE 25TH DAY OF APRIL 2024 / 5TH VAISAKHA, 1946 WP(C) NO. 16572 OF 2024 PETITIONER/S: M/S FACTUM GRANITES PVT LTD, BUILDING NO.18/65, MARAKKAAVU,BLOCK NO.35, ERIMAYUR, PALAKKAD, REPRESENTED BY ITS DIRECTOR, SAJI K.ALIAS,AGED 51, S/O.ALIAS, CHENNOTH KUZHIKANDATHIL, THIRUVANIYOOR. P.O., PIN - 678546 BY ADVS. DINESH R.SHENOY VISHAKHA J. RESPONDENT/S: THE COMMISSIONER OF INCOME TAX (APPEALS) OFFICE OF PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL REVENUE BUILDING, I.S.PRESS ROAD,COCHIN., PIN - 682018 NAVANEETH. S. NAIR - SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.04.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 16572 OF 2024 2 JUDGMENT Being aggrieved by the Ext.P4 assessment order pertaining to the assessment year 2021-2022, the petitioner submitted Ext.P5 appeal and Ext.P6 stay petition, which is now pending before the respondent. The grievance of the petitioner is that, recovery proceedings pursuant to Ext.P4 is being pursued, despite the fact that an amount of Rs.13,20,000/- has already been seized from the petitioner as per Ex.P8 seizure inventory. The learned counsel is also placing reliance upon Ext.P10 judgment passed by this Court in similar circumstances. 2. After hearing the learned counsel for the petitioner and learned Standing Counsel for the respondent, I am of the view that, since Ext.P5 appeal and P6 stay petition are pending consideration before the respondent, it is only proper that a decision thereon be taken on the same within a time limit. The fact that an amount which is higher than the amount is demanded as per Ext.P4 is already WP(C) NO. 16572 OF 2024 3 seized from the petitioner is also yet another reason, which prompts this Court to stay the recovery proceedings against the petitioner for the time being. In such circumstances, it is ordered that the respondent shall take up Ext.P6 stay petition and pass appropriate orders thereon, within a period of one month from the date of receipt of a copy of this judgment. Till a decision is taken, the recovery proceedings pursuant to Ext.P4 shall be kept in abeyance. Sd/- ZIYAD RAHMAN A.A. JUDGE msp WP(C) NO. 16572 OF 2024 4 APPENDIX OF WP(C) 16572/2024 PETITIONER EXHIBITS Exhibit P1 TRUE PHOTOCOPY OF THE NOTICE DATED 24/5/2023 AND THE ACKNOWLEDGMENT OF RESPONSE THERETO ISSUED BY THE INCOME TAX DEPARTMENT. Exhibit P2 TRUE PHOTOCOPY OF THE LETTER DATED 2/6/2021 ISSUED BY M/S. ABY P.B. & ASSOCIATES, CHARTERED ACCOUNTANTS, ON BEHALF OF THE PETITIONER. Exhibit P3 TRUE PHOTOCOPY OF SHOWCAUSE NOTICE DATED 12/6/2023 AND THE RESPONSE ACKNOWLEDGEMENT THERETO ISSUED BY THE INCOME TAX DEPARTMENT. Exhibit P4 TRUE PHOTOCOPY OF ASSESSMENT ORDER FOR ASSESSMENT YEAR 2021-22 DATED 27/6/2023. Exhibit P5 TRUE PHOTOCOPY OF APPEAL DATED 25/7/2023, TOGETHER WITH ACKNOWLEDGMENT RECEIPT ISSUED BY THE IT DEPARTMENT. Exhibit P6 TRUE PHOTOCOPY OF STAY PETITION FILED BY THE PETITIONER DATED 25/7/2023. Exhibit P7 TRUE PHOTOCOPY OF THE NOTICE DATE 31/3/2024 ISSUED TO THE PETITIONER. Exhibit P8 TRUE PHOTOCOPY OF ASSESEE'S COPY OF INVENTORY OF THE CASH SEIZED DATED 5/1/2022, ISSUED BY THE IT DEPARTMENT. Exhibit P9 TRUE PHOTOCOPY OF NOTICE DATED 18/4/204 ISSUED BY THE CENTRAL CIRCLE 1, INCOME TAX DEPARTMENT, KOCHI. Exhibit P10 TRUE PHOTOCOPY OF THE JUDGEMENT DATED 9/4/2024 IN W.P.(C)NO. 14760/2024, HIGH COURT OF KERALA. "