M/S.INTERNATIONAL BUSINESS SERVICES GROUP PRIVATE LIMITED V. UNION OF INDIA

WP(C)/3702/2012

AI Insights

The case involves M/S International Business Services Group Private Limited, which filed a writ petition against the Union of India and various income tax authorities concerning the initiation of revenue recovery proceedings while a stay petition was pending. The petitioner had previously filed an appeal and a stay petition against an assessment order for the assessment year 2003-04, which was still under consideration. The primary legal issue was the premature initiation of recovery proceedings by the tax authorities despite the pending stay petition.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 679789 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 14-02-2012
• Assessment Year: misc
• Other Referred Cases: M/S.Maheswari Agro Industries vs. Civil WPC No. 1264/2011
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: A K NAMBIAR
• Keywords: Appeal; Assessment Order; Stay Petition; Tax Recovery
• Section: 147; 143(3); 143(1)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE S.SIRI JAGAN TUESDAY, THE 14TH DAY OF FEBRUARY 2012/25TH MAGHA 1933 WP(C).No. 3702 of 2012 (K) -------------------------- PETITIONER(S): ----------------------- M/S.INTERNATIONAL BUSINESS SERVICES GROUP PRIVATE LIMITED, 521-524, NILA TECHNOPARK, THIRUVANANTHAPURAM-695 581, REPRESENTED BY ITS AUTHORIZED SIGNATORY, MR.RAMESH BABU. M. BY SRI.A.K.JAYASANKARAN NAMBIAR, SENIOR ADVOCATE, ADVS. SRI.M.GOPIKRISHNAN NAMBIAR, SRI.P.GOPINATH, SRI.P.BENNY THOMAS, SRI.K.JOHN MATHAI, SRI.KURYAN THOMAS. RESPONDENT(S): ------------------------- 1. UNION OF INDIA, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI-110 004. 2. COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAWAN, KOWDIAR, THIRUVANANTHAPURAM-695 003. 3. COMMISSIONER OF INCOME TAX, AAYAKAR BHAWAN, KOWDIAR, THIRUVANANTHAPURAM-695 003. 4. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1(1), AAYAKAR BHAWAN, KOWDIAR, THIRUVANANTHAPURAM-695 003. R2 TO R4 BY ADV. SRI.JOSE JOSEPH, SC, INCOME TAX. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14-02-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs. WP(C).No. 3702 of 2012 (K) APPENDIX PETITIONER'S EXHIBITS:- EXT.P1:- TRUE COPY OF THE EXTRACTS OF THE TAX AUDIT REPORT IN FORM 3CD IN RESPECT OF IBSS FOR THE AY 2000-01 DTD 12/2/2001. EXT.P2:- TRUE COPY OF THE EXTRACTS OF THE NOTES TO ACCOUNTS FORMING PART OF THE AUDITED FINANCIAL STATEMENTS OF THE PETITIONER OF THE AY 2000-01 DATED NIL EXT.P3:- TRUE COPY OF THE INTIMATION UNDER SECTION 143(1) OF THE ACT IN THE CASE OF THE PETITIONER DTD. 16/1/2002 FOR THE AY 2000-01. EXT.P4:- TRUE COPY OF THE INTIMATION UNDER SECTION 143(1) OF THE ACT IN THE CASE OF THE PETITIONER FOR AY 2003-04. EXT.P5:- TRUE COPY OF THE ASSESSMENT ORDER U/S.143(3)READ WITH SECTION 147 OF THE ACT DTD 27/12/2010 IN THE CASE OF THE PETITIONER FOR AY 2003-04. EXT.P6:- COPY OF THE RECENT RULING OF THE RAJASTAN HIGH COURT IN THE CASE OF M/S.MAHESWARI AGRO INDUSTRIES (SUPRA) IN CIVIL WPC NO. 1264/2011 DTD 15/12/2011. EXT.P7:- TRUE COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD 21/1/2011 FOR AY 2003-04 AGAINST EXHIBITS P5 ORDER. EXT.P8:- TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 21/1//2011 FOR AY 2003-04, AGAINST THE DEMAND RAISED VIDE EXHIBIT P5 ORDER. EXT.P9:- TRUE COPY OF THE LETTER DTD. 2/2/2012 PROPOSING INITIATION OF RECOVERY PROCEEDINGS PURSUANT TO EXHIBIT P5 ORDER. RESPONDENT'S EXHIBITS:- NIL. //TRUE COPY// P.A. TO JUDGE rs. S. SIRI JAGAN, J. ------------------------------------------- W.P.(C) No. 3702 of 2012 ---------------------------------------------- Dated this the 14th day of February, 2012 JUDGMENT Against Ext.P5 assessment order, the petitioner has filed Ext.P7 appeal along with Ext.P8 stay petition. The petitioner’s grievance in this writ petition is that while the stay petition is pending, revenue recovery proceedings have been initiated by the 4th respondent to recover the tax disputed in the appeal. 2. I have heard the learned Government Pleader also. In the facts and circumstances of the case, I dispose of this writ petition with a direction to the 2nd respondent appellate authority to consider and pass orders on Ext.P8 stay petition, as expeditiously as possible, at any rate, within one month from the date of receipt of a copy of this judgment. Till orders are passed on Ext.P8 stay petition, coercive recovery of the tax disputed in Ext.P7 appeal shall be kept in abeyance. S. SIRI JAGAN, JUDGE acd "