Innovate Designers & Builders Private Limited V. Union of India and Assessment Unit, Income Tax Department, National Faceless Assessment Centre, Delhi and Commissioner of Income Tax (Appeals), National Faceless Appeal, Centre, Delhi and Income Tax Officer, Ward-1(1), Thiruvananthapuram

WP(C)/26949/2024

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Innovate Designers & Builders Private Limited, represented by its director Vijesh Vijayan, filed a writ petition challenging an assessment order and a subsequent penalty notice issued by the Income Tax Department for the assessment year 2022-23. The petitioner sought a stay on the recovery proceedings initiated under the assessment order while appealing the assessment decision and penalty. The court heard the arguments from both the petitioner's counsel and the Standing Counsel for the respondents and decided to stay the recovery proceedings until the Commissioner of Income Tax (Appeals) decides on the stay application.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 800250 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 30-07-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: P G JAYASANKAR
• Assessee Lawyers: MARY BENJEMIN
• Keywords: Income tax assessment; Penalty notice; Stay Application
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. TUESDAY, THE 30TH DAY OF JULY 2024 / 8TH SRAVANA, 1946 WP(C) NO. 26949 OF 2024 PETITIONER/S: INNOVATE DESIGNERS & AMP BUILDERS PRIVATE LIMITED, TC 93/1944 KRISHNA FLAT,KRA 11A, RAILWAY STATION ROAD PALLIMUKU, PETTAH, TRIVANDRUM, REPRESENTED BY ITS DIRECTOR VIJESH VIJAYAN, PIN - 691301 BY ADV MARY BENJEMIN RESPONDENT/S: 1 UNION OF INDIA, REPRESENTED BY ITS SECRETARY, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, NEW DELHI, PIN - 110001 2 ASSESSMENT UNIT, INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI, PIN - 110001 3 COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL, CENTRE, DELHI, PIN - 110001 4 INCOME TAX OFFICER, WARD-1(1), OFFICE OF THE INCOME TAX OFFICER, WARD1(1),KOWDIAR, THIRUVANANTHAPURAM, PIN - 695003 SRI. P.G. JAYASANKAR, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30.07.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 26949 OF 2024 2 JUDGMENT Petitioner suffered Ext.P2 order of assessment under the provisions of the Income Tax Act, 1961 for the assessment for the assessment year 2022-23. Petitioner has also been served with Ext.P4 notice proposing to impose a penalty on the petitioner. The petitioner has preferred Ext.P3 appeal against Ext.P2 order of assessment together with Ext.P6 application for stay. 2. Learned counsel appearing for the petitioner would submit that the proceedings for recovery of any amount pursuant to Ext.P2 order of assessment may be stayed pending disposal of Ext.P6 application for stay. It is also submitted that the petitioner will file a suitable reply to the proposal for imposition of penalty. 3. Heard the learned Standing Counsel also. 4. Having heard the learned counsel appearing for the petitioner and the learned Standing Counsel appearing for the respondents, the writ petition will stand disposed of, directing the 3rd respondent to consider and pass orders on Ext.P6 application for stay filed in Ext.P3 appeal, after affording an WP(C) NO. 26949 OF 2024 3 opportunity of hearing to the petitioner. Any proceedings for recovery of amounts assessed as due under Ext.P2 order of assessment will stand stayed pending consideration of the matter by the 3rd respondent. The 3rd respondent will endeavour to pass orders on Ext.P6 application for stay, within a period of two months from the date of receipt of a certified copy of this judgment. Sd/- GOPINATH P. JUDGE ajt WP(C) NO. 26949 OF 2024 4 APPENDIX OF WP(C) 26949/2024 PETITIONER EXHIBITS Exhibit P1 RETURN OF INCOME TAX DATED 26.09.2022 FILED BY THE PETITIONER FOR THE ASSESSMENT YEAR 2022-23 Exhibit P2 TRUE COPY OF THE ASSESSMENT ORDER DATED 21.03.2024 FOR THE YEAR 2022-2023 ISSUED TO THE PETITIONER BY THE 2 ND RESPONDENT. Exhibit P3 TRUE COPY OF THE APPEAL DATED 20.04.2024 FILED BEFORE THE 3 RD RESPONDENT BY THE PETITIONER Exhibit P4 TRUE COPY OF THE PENALTY NOTICE DATED 21.03.2024 ISSUED BY THE 2 ND RESPONDENT TO THE PETITIONER. Exhibit P5 TRUE COPY OF THE RECOVERY NOTICE DATED 02.07.2024 ISSUED BY THE 4 TH RESPONDENT. Exhibit P6 TRUE COPY OF THE STAY PETITION DATED 09.07.2024 SUBMITTED BY THE PETITIONER BEFORE THE 3 RD RESPONDENT. "