GALEXY HOMES (P) LTD. V. THE COMMISSIONER OF INCOME TAX (APPEALS) - II

WP(C)/18687/2014

AI Insights

The case involves Galexy Homes (P) Ltd., which filed a writ petition against the order passed in the stay application concerning a statutory appeal for the assessment year 2011-12. The petitioner had previously obtained a stay from the High Court of Kerala, which directed the appellate authority to consider the stay application. The appellate authority, after prima facie consideration, directed the payment of Rs. 50,00,000 as a condition for the stay. The petitioner challenged this order, leading to the current writ petition.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 761353 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 21-07-2014
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: P K R MENON; JOSE JOSEPH
• Assessee Lawyers: SAIBY KIDANGOOR; VINOD EDAPPUNATHIL
• Keywords: Assessment Order; Demand notice; Income tax appeal; Stay Application
• Section: 143(3); 271(1)(c); 274; 156

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN MONDAY, THE 21ST DAY OF JULY 2014/30TH ASHADHA, 1936 WP(C).No. 18687 of 2014 (I) ---------------------------- PETITIONER(S): ------------- GALEXY HOMES (P) LTD., GALAXY SQUARE, OPP. ABAD PLAZA, RAJAJI ROAD JUNCTION, M.G.ROAD, KOCHI-682 035, REPRESENTED BY ITS MANAGING DIRECTOR P.A.JINAS. BY ADVS.SRI.SAIBY JOSE KIDANGOOR SRI.VINOD.V (EDAPPUNATHIL). RESPONDENT(S): -------------- 1. THE COMMISSIONER OF INCOME TAX (APPEALS) – II, KERA BHAVAN, SHVHS ROAD, KOCHI-682 011. 2. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(2), C.R.BUILDING, I.S.PRESS ROAD, KOCHI – 682 018. BY SRI.P.K.R.MENON, SENIOR COUNSEL FOR GOVERNMENT OF INDIA (TAXES) BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21-07-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rvs/ WP(C).No. 18687 of 2014 (I) APPENDIX PETITIONER(S)' EXHIBITS : ---------------------- EXHIBIT P1: TRUE COPY OF THE ASSESSMENT ORDER UNDER SECTION 143(3) OF THE IT ACT 1961 DATED 28/03/2014. EXHIBIT P1(A): TRUE COPY OF THE DEMAND NOTICE UNDER SECTION 156 OF IT ACT, 1961 DATED 28/03/2014. EXHIBIT P(B): TRUE COPY OF THE NOTICE UNDER SECT6ION 274 R/W. SECTION 271(1)(C)OF IT ACT, 1961 DATED 28/03/2014. EXHIBIT P2: TRUE COPY OF APPEAL DATED 30/04/2014. EXHIBIT P3: TRUE COPY OF PETITIONER'S REPRESENTATION DATED 30/04/2014. EXHIBIT P4: TRUE COPY OF the AFFIDAVIT WITH STAY PETITION DATED 15/05/2014. EXHIBIT P5: TRUE COPY OF THE PETITION FOR WAIVER OF PRE-DEPOSIT DATED 15/05/2014. EXHIBIT P6: TRUE COPY OF THE NOTICE ITA NO.36/R1/CIT(A)-II/14-15 DATED 27/06/2014. EXHIBIT P7: TRUE COPY OF THE ORDER ISSUED BY THE 1ST RESPONDEDNT DATED 11/07/2014. EXHIBIT P8: TRUE COPY OF THE LETTER NO.DCIT/CIR.1(2)/EKM/2014-15 DATED 18/07/2014 ISSUED BY THE 2ND RESPONDENT. RESPONDENT(S)' EXHIBITS: NIL. /true copy/ P.A.TO JUDGE rvs/ K.Vinod Chandran, J. -------------------------------------- W.P.(C).No.18687 of 2014-I -------------------------------------- Dated this the 21st day of July, 2014 JUDGMENT The challenge made in the present writ petition is, against the order passed in the stay application in the statutory appeal filed by the petitioner. The appeal was filed for the assessment year 2011-12. The petitioner had also come before this Court to obtain a stay when the application for stay ws pending. That was granted, with consequential direction to the appellate authority to consider the stay application. The first appellate authority, on a prima facie consideration, has directed payment of Rs.50,00,000/- [Rupees fifty lakhs only]. 2. This Court finds that the amount directed to be paid was only about 12.5% of the total demand made. In such circumstance, this Court is not convinced that the discretionary power exercised by the appellate authority is liable to be interfered with. However, to enable the petitioner to satisfy the condition imposed in the order passed in the stay application, WP(C).No.18687 of 2014 - 2 - the petitioner shall be granted two instalments, one on 29.08.2014 and the other on 29.09.2014. Till such time, the coercive steps initiated shall be kept in abeyance. On default of any of the above instalments, the Revenue will be entitled to proceed with the recovery proceedings. The writ petition is disposed of as above. Sd/- K.Vinod Chandran, Judge vku. ( true copy ) "