Hotel Salkara V. Assessment Unit, Income Tax Department, National E-Assessment Centre, New Delhi and Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, New Delhi and Deputy Commissioner of Income Tax Circle 1 (1) & TPS, Aayakar Bhavan, Income Tax Office, Shakthanthampuran Nagar, Thrissur

WP(C)/16461/2023

AI Insights

The case involves Hotel Salkara, represented by its managing partner M. Satheesan P.N., who filed a writ petition against the Income Tax Department's assessment and demand notices for the year 2018-19. The petitioner challenged the assessment order and demand notice through an appeal and a stay petition filed with the Commissioner of Income Tax (Appeals). Despite these filings, the department initiated coercive actions, including issuing a show cause notice for penalty imposition. The petitioner sought judicial intervention to halt these actions pending the resolution of their appeal and stay petition.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 805686 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 24-05-2023
• 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
• Keywords: Appeal; Assessment Order; Coercive Proceedings; Demand notice; Income Tax; Penalty; Stay Petition
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE C.S.DIAS WEDNESDAY, THE 24TH DAY OF MAY 2023 / 3RD JYAISHTA, 1945 WP(C) NO. 16461 OF 2023 PETITIONER: HOTEL SALKARA VIII/322, CHAVAKKAD, GURUVAYUR, THRISSUR-680506, REPRESENTED BY ITS MANAGING PARTNER, M. SATHEESAN P.N, S/O. PADMANABHAN, AGED 62 YEARS, RESIDING AT NADUPARAMBIL HOUSE, ETTUMANOOR P.O. , KOTTAYAM, PIN – 686631 BY ADVS. N.MURALEEDHARAN NAIR ANTONY JONES RESPONDENTS: 1 ASSESSMENT UNIT THE INCOME TAX DEPARTMENT, NATIONAL E-ASSESSMENT CENTRE, NEW DELHI, PIN – 110001 2 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, NEW DELHI, PIN – 110001 3 DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 1 (1) & TPS , AAYAKAR BHAVAN, INCOME TAX OFFICE, SHAKTHANTHAMPURAN NAGAR, THRISSUR, PIN – 680001 BY SRI.JOSE JOSEPH (S.C.) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.05.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C)No.16461/2023 -:2:- Dated this the 24th day of May,2023 J U D G M E N T The writ petition is filed to direct the second respondent to consider and pass orders on Ext P3 & appeal and Ext P4 stay petition expeditiously. 2. The petitioner’s case is that, challenging Ext P1 assessment order and Ext P2 demand notice passed by the first respondent, the petitioner has preferred Ext P3 appeal and Ext P4 stay petition before the second respondent. During the pendency of Exts P2 and P3, the respondents are initiating coercive proceedings as against the petitioner and has issued Ext P6 show cause notice, as to why the penalty should not be imposed. Hence, the writ petition. 3. Heard; Sri. N. Muraleedharan Nair, the learned counsel appearing for the petitioner and Sri.Jose Joseph, the learned standing counsel W.P.(C)No.16461/2023 -:3:- appearing for the respondents. 4. Having considered the pleadings and materials on record and taking note of the fact that Ext P4 stay petition is pending consideration before the second respondent as early as on 20.04.2023, I am inclined to allow the writ petition as follows: (i) The second respondent is directed to consider and dispose of Ext P4 stay petition, within a period of two months from the date of receipt of a certified copy of this judgment, after affording the petitioner an opportunity of being heard. (ii) Recovery steps as against the petitioner shall be kept in abeyance until orders are passed on Ext P4 stay petition. (iii) Likewise, penalty proceedings pursuant to Ext P6 shall be kept in abeyance till Ext P3 appeal is considered and dispose of. (iv) The order passed on Ext P4 stay petition shall W.P.(C)No.16461/2023 -:4:- be a reasoned one, adverting to the contentions of the petitioner regarding the existence of the prima-facie case and for stay of recovery pending disposal of the appeal. Sd/- C.S.DIAS,JUDGE DST/24.05.23 //True copy// P .A.To Judge W.P.(C)No.16461/2023 -:5:- APPENDIX PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER PASSED BY THE 1ST RESPONDENT UNDER THE INCOME TAX ACT FOR THE YEAR 2018-19 DATED 22.03.2023 EXHIBIT P2 TRUE COPY OF THE DEMAND NOTICE ISSUED BY THE 1ST RESPONDENT DATED 22.03.2023 EXHIBIT P3 TRUE COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE 2ND RESPONDENT DATED 20.04.2023 EXHIBIT P4 TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 20.04.2023 EXHIBIT P5 TRUE COPY OF THE LETTER ISSUED BY THE 3RD RESPONDENT DATED 03.05.2023 EXHIBIT P6 TRUE COPY OF THE SHOW CAUSE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 22.03.2023 RESPONDENT’S EXHIBITS: NIL "