HLL BIOTECH LTD., V. INCOME TAX OFFICER,

WP(C)/33679/2018

AI Insights

The case involves HLL Biotech Ltd., a subsidiary of a Government of India undertaking, which faced an adverse order for the assessment year 2014-15. The company appealed to the Commissioner of Income Tax (Appeals), and subsequently to the Tribunal, which partly allowed the appeal and remanded the matter for fresh adjudication. During the pendency of these proceedings, the Department initiated coercive action against the petitioner, prompting the filing of this writ petition. The main legal issue was whether the Department could proceed with coercive actions while the appeal was still under consideration by the appellate authority.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 755083 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 14-11-2018
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM; K M V PANDALAI
• Assessee Lawyers: E K MADHAVAN; J SURYA; P VIJAYAMAM; PRINSUN PHILIP; V MENON
• Keywords: Adverse Order; Appeal; Coercive Action; Income Tax; Remand
• Section: 156

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU WEDNESDAY,THE 14TH DAY OF NOVEMBER 2018 / 23RD KARTHIKA, 1940 WP(C).No. 33679 of 2018 PETITIONER/S: HLL BIOTECH LTD., HILL BHAVAN, POOJAPPURA P.O., THIRUVANANTHAPURAM - 695 012, REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER. BY ADVS. SRI.E.K.MADHAVAN SMT.J.SURYA SMT.P.VIJAYAMMA SRI.PRINSUN PHILIP SRI.V.KRISHNA MENON RESPONDENT/S: 1 INCOME TAX OFFICER, WARD II(1), OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX, RANGE-I, KOWDIYAR, THIRUVANANTHAPURAM - 695 003. 2 COMMISSIONER OFF INCOME TAX (APPEALS) AAYAKKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM - 695 003. 3 PRINCIPAL COMMISSIONER OF INCOME TAX AAYAKKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM - 695 003. BY ADVS. SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT SRI.K.M.V.PANDALAI, INCOME TAX DEPARTMENT -2- W.P.(C). No. 33679 of 2018 OTHER PRESENT: SRI K.M.V.PANDALAI, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.11.2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: JUDGMENT The petitioner is a subsidiary of a Government of India undertaking. For the assessment year 2014-15 it has suffered an adverse order and, then, appealed to the Commissioner of Income Tax (Appeals). 2. The appeal rejected, the petitioner filed the second appeal before the Tribunal. In fact, the Tribunal partly allowed the appeal and remanded the matter for fresh adjudication. When the proceedings are pending before the second respondent, the Department seems to have initiated coercive action. Aggrieved, the petitioner has filed this writ petition. 3. Now both the counsel agree that the Department could proceed against the petitioner only after the appellate authority -3- W.P.(C). No. 33679 of 2018 considers the remanded issue. Under these circumstances, the Department will defer all coercive steps until the second respondent considers the petitioner's appeal as directed by the appellate Tribunal. Sd/- DAMA SESHADRI NAIDU JUDGE das APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ORDER DATED 26.12.2016. EXHIBIT P2 TRUE COPY OF THE NOTICE OF DEMAND IN FORM -7 UNDER SECTION 156 OF THE INCOME TAX ACT ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 TRUE COPY OF THE MEMORANDUM OF APPEAL. EXHIBIT P4 TRUE COPY OF THE PETITION DATED 08.02.2017 FILED BY THE PETITIONER BEFORE THE FIRST RESPONDENT. EXHIBIT P5 TRUE COPY OF THE ORDER DATED 29.02.2016 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES. -4- W.P.(C). No. 33679 of 2018 EXHIBIT P6 TRUE COPY OF THE OF THE ORDER DATED 05.10.2017 PASSED BY THE FIRST RESPONDENT. EXHIBIT P7 TRUE COPY OF THE REVISED INSTRUCTION DATED 31.07.2017 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES. EXHIBIT P8 TRUE COPY OF THE REVIEW PETITION FILED BY THE PETITIONER BEFORE THE THIRD RESPONDENT. EXHIBIT P9 TRUE COPY OF THE ORDER DATED 05.01.2018 PASSED BY THE THIRD RESPONDENT. EXHIBIT P10 TRUE COPY OF THE JUDGMENT DATED 30.01.2018 IN W.P(C) NO. 2396 OF 2018. EXHIBIT P11 TRUE COPY OF THE PETITIONER'S LETTER DATED 22.01.2018. EXHIBIT P12 TRUE COPY OF THE ORDER OF THE SECOND RESPONDENT DATED 23.03.2018. EXHIBIT P13 TRUE COPY OF THE LETTER DATED 14.06.2018 OF THE GOVERNMENT. EXHIBIT P14 TRUE COPY OF THE ORDER DATED 24.09.2018. EXHIBIT P15 TRUE COPY OF THE NOTICE DATED 03.10.2018 ISSUED BY THE FIRST RESPONDENT. "