FEBITHA ALI V. THE DEPUTY COMMISSIONER OF INCOME TAX

WP(C)/6003/2020

AI Insights

Febitha Ali, the petitioner, filed a writ petition challenging the delay in the consideration of her stay petition (Ext.P5) related to an income tax assessment order (Ext.P1) for the year 2010-11. The assessment order was made by the Deputy Commissioner of Income Tax, Circle-1, Palakkad, and was later appealed. The petitioner argued that the delay in the appellate authority's decision on the stay petition allowed the assessing officer to proceed with recovery actions, potentially rendering the statutory appeal ineffective. The High Court of Kerala at Ernakulam, presided by Justice S.V. Bhatti, found merit in the petitioner's arguments and issued directions to expedite the consideration of the stay petition and temporarily halt any recovery actions.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 763026 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 28-02-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: N NAIR; S JAFFERALI
• Keywords: Appeal; Assessment Order; Coercive Steps; 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 FRIDAY, THE 28TH DAY OF FEBRUARY 2020 / 9TH PHALGUNA, 1941 WP(C).No.6003 OF 2020(A) PETITIONER: FEBITHA ALI AGED 39 YEARS C/O. PREMIER AGRO PRODUCTS PVT. LTD, KINASSERY, PALAKKAD. BY ADVS. SRI.N.MURALEEDHARAN NAIR SRI.S.JAFFERALI RESPONDENTS: 1 THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE -1, PALAKKAD 678 001. 2 THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, 1ST FLOOR, BLOCK C-1, AND C-II, KENDRIYA BHAVAN, KAKKANAD, COCHIN 682 037. 3 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, PALAKKAD 678 001. BY SRI. JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.6003 OF 2020(A) 2 JUDGMENT Dated this the 28th day of February 2020 The petitioner filed appeal in Ext.P3 aggrieved by the order of assessment in Ext.P1 made under the Income Tax Act. The petitioner has filed the appeal along 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 and disposing of 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 WP(C).No.6003 OF 2020(A) 3 order on stay petition is passed expeditiously. Hence the writ petition. 3. Perused Exts. P1 to P5. Prima facie I am satisfied that a case is made out for issuing necessary directions to second 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/second respondent considers and disposes of Ext.P5 stay petition as early as possible, preferably within two months 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 DCS WP(C).No.6003 OF 2020(A) 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER PASSED BY THE 1ST RESPONDENT UNDER THE INCOME TAX ACT FOR THE YEAR 2010-11, DATED 12.03.2015 EXHIBIT P2 TRUE COPY OF THE APPELLATE ORDER PASSED BY THE FIRST APPELLATE AUTHORITY FOR THE YEAR 2010-11, THRISSUR DATED 04.07.2019. EXHIBIT P3 TRUE COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 16.09.2019. EXHIBIT P4 TRUE COPY OF THE DEMAND NOTICE ISSUED BY THE 3RD RESPONDENT DATED 02.01.2020. EXHIBIT P5 TRUE COPY OF THE STAY PETITION FIELD BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 25.02.2020. EXHIBIT P5 TRUE COPY OF THE STAY PETITION FIELD BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 25.02.2020. "