HLL BIOTECH LTD. V. INCOME TAX OFFICER

WP(C)/218/2019

AI Insights

HLL Biotech Ltd., the petitioner, challenged the assessment orders issued by the Income Tax Officer and subsequent orders by the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal. The petitioner filed stay petitions along with the appeals, seeking to prevent coercive actions by the tax authorities during the pendency of these appeals. The core issue was the procedural fairness in allowing the appellate authority to decide on the stay petitions before the tax authorities could take any coercive measures. The court's decision underscored the need for the tax authorities to wait for the appellate tribunal's decision on the stay petitions to ensure fair legal proceedings.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 764716 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 04-01-2019
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: V MENON; J SURYA; P VIJAYAMAM; E K MADHAVAN; PRINSUN PHILIP
• Keywords: Appeal; Assessment Order; Coercive Steps; Income Tax; Stay Petition
• Section: 156

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU FRIDAY ,THE 04TH DAY OF JANUARY 2019 / 14TH POUSHA, 1940 WP(C).No. 218 of 2019 PETITIONER/S: HLL BIOTECH LTD. HLL BHAVAN, POOJAPPURA P.O., THIRUVANANTHAPURAM -695012, REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER. BY ADVS. SRI.V.KRISHNA MENON SMT.J.SURYA SMT.P.VIJAYAMMA SRI.E.K.MADHAVAN SRI.PRINSUN PHILIP RESPONDENT/S: 1 INCOME TAX OFFICER WARD 1(1), OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX, RANGE-I, KOWDIYAR, THIRUVANANTHAPURAM-695003. 2 COMMISSIONER OF INCOME TAX(APPEALS), AAYAKKAR BHAWAN, KOWDIYAR, THIRUVANANTHAPURAM-695 003. 3 PRINCIPAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAWAN, KOWDIAR, THIRUVANANTHAPURAM-695 003. 4 INCOME TAX APPELLATE TRIBUNAL-COCHIN BENCH, 1ST FLOOR WING C1 AND C2, KENDRIYA BHAVAN, OPP. TO CSEZ, KAKKANAD, KOCHI-682037, REPRESENTED BY ITS ASSISTANT REGISTRAR. W.P.(C) No. 218/2019 -2- OTHER PRESENT: SRI CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.01.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: J U D G M E N T The petitioner, an assessee under the Income Tax Act, 1961, questioned the Exts.P1 and P3 assessment orders before the Commissioner of Income Tax (Appeals). It resulted in the Exts.P9 and P10 orders. 2. The petitioner again challenged the Exts.P9 and P10 orders in the second appeal, before the Appellate Tribunal, the fourth respondent. The petitioner, in the appeals, filed stay petitions, too. Ventilating its grievance that the authorities are taking coercive steps before the appellate authority could consider the stay petitions in the appeals, the petitioner has filed this writ petition. W.P.(C) No. 218/2019 -3- 3. Heard the learned counsel for the petitioner and the learned Standing Counsel. 4. I reckon the petitioner has exercised on time its statutory remedy of filing second appeals. True, before the Tribunal, stay petitions are pending. Procedural fairness demands that the authorities wait, before taking further steps, until the appellate authority decides on the stay petitions. Therefore, I dispose of the writ petition, directing the respondent authority to defer coercive steps until the fourth respondent considers the stay petitions. I also hope that the fourth respondent will dispose of the stay petitions expeditiously. Sd/- DAMA SESHADRI NAIDU JUDGE jjj W.P.(C) No. 218/2019 -4- APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 28.6.2018. EXHIBIT P2 TRUE COPY OF THE NOTICE OF DEMAND IN FORM-7 UNDER SECTION 156 OF THE INCOME TAX ACT. EXHIBIT P3 TRUE COPY OF THE ORDER DATED 19.12.2017. EXHIBIT P4 TRUE COPY OF THE NOTICE OF DEMAND DATED 19.12.2017. EXHIBIT P5 TRUE COPY OF THE MEMORANDUM OF APPEAL FOR THE ASSESSMENT YEAR 2013-14. EXHIBIT P6 TRUE COPY OF THE MEMORANDUM OF APPEAL FOR THE ASSESSMENT YEAR 2015-16. EXHIBIT P7 TRUE COPY OF THE JUDGMENT DATED 30.1.2018 IN W.P. (C) NO.2396/2018. EXHIBIT P8 TRUE COPY OF THE LETTER DATED 14.6.2018. EXHIBIT P9 TRUE COPY OF THE ORDER DATED 30.11.2018 FOR THE ASST. YEAR 2013-14. EXHIBIT P10 TRUE COPY OF THE ORDER DATED 30.11.2018 FOR THE ASST. YEAR 2015-16. EXHIBIT P11 TRUE COPY OF THE MEMORANDUM OF APPEAL FOR THE ASSESSMENT YEAR 2013-14 BEFORE THE INCOME TAX APPELLATE TRIBUNAL, KOCHI. EXHIBIT P12 TRUE COPY OF THE MEMORANDUM OF APPEAL FOR THE ASSESSMENT YEAR 2015-16 BEFORE THE INCOME TAX APPELLATE TRIBUNAL, KOCHI. EXHIBIT P13 TRUE COPY OF THE STAY PETITION. W.P.(C) No. 218/2019 -5- EXHIBIT P14 TRUE COPY OF THE STAY PETITION. EXHIBIT P15 TRUE COPY OF THE LETTER DATED 19.12.2019. "