J.K.ENTERPRISES V. THE ASSISTANT COMMISSIONER OF INCOME TAX

WP(C)/5534/2020

AI Insights

The case involves J.K. Enterprises, represented by its partner Jayakumar, who filed a writ petition challenging the delay in the consideration of a stay petition (Ext.P3) related to an assessment order (Ext.P1) under Section 143(3) of the Income Tax Act. The petitioner appealed against the assessment order and simultaneously filed a stay petition with the appellate authority. The petitioner argued that the delay in considering the stay petition allowed the assessing officer to proceed with recovering the disputed tax amount, potentially rendering the appeal academic or ineffective. The High Court of Kerala, upon reviewing the documents and the circumstances, found merit in the petitioner's request for expedited consideration of the stay petition and issued the aforementioned directions to the appellate authority and the respondents.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 753958 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 26-02-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: C A KUMAR; SUNIL SHANKER; SC ABRAHAM; R REMA
• Assessee Lawyers: HARISANKAR MENON; MEERA MENON; K KRISHNA
• Keywords: Appellate Authority; Assessment Order; Income Tax; Stay Petition
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI WEDNESDAY, THE 26TH DAY OF FEBRUARY 2020 / 7TH PHALGUNA, 1941 WP(C).No.5534 OF 2020(N) PETITIONER/S: J.K.ENTERPRISES X-15-1299, SREE JANARDHANA COMPLEX, RESIDENCY ROAD, KOLLAM-691001, REPRESENTED BY ITS PARTNER, JAYAKUMAR. J BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON SMT.K.KRISHNA RESPONDENTS: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-1, KOLLAM-691001 2 THE COMMISSIONER OF INCOME TAX(APPEALS), THIRUVANANTHAPURAM-695003 3 THE MANAGER INDIAN OVERSEAS BANK, MUSLIAR BUILDINGS, CHINNAKKADA POST, KOLLAM-691001 4 THE MANAGER BANK OF BARODA, KOLAM BRANCH, PARAMESHWARAM PILLAI BUILDING, MAIN ROAD, KOLLAM POST, KOLLAM-691001 5 THE MANAGER STATE BANK OF INDIA, KOLLAM MAIN, NEAR RAILWAY STATION, KOLLAM POST, KOLLAM-691001 SRI. C A KUMAR., SRI. SUNIL SHANKER., SRI. SC CHRISTOPHER ABRAHAM. SMT. R REMA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 WP(C).No.5534 OF 2020(N) JUDGMENT Dated this the 26th day of February 2020 The petitioner filed appeal in Ext.P2 aggrieved by the orders of assessment in Ext.P1 made under Section 143(3) of the Income Tax Act. The petitioner has filed the appeal with Ext.P3 stay petition. The petitioner prays for appropriate direction to the appellate authority to consider and dispose of Ext.P3 expeditiously. 2. The case of petitioner is that either the mere filing of appeal or pendency of appeal does not amount to granting stay by the appellate authority. The delay in considering Ext.P3 stay petition results in the assessing officer taking steps for recovering the tax amount which is under challenge in Ext.P2. The assessing officer, if is successful in his effort the statutory appeal would become either academic or ineffective. It is further contended by the petitioner that in the manner the law provides for protecting the interest of appellant pending appeal, the orders on stay petition are passed expeditiously. Hence the writ petition. 3. Perused Exts. P1, P2 and P3. Prima facie I am satisfied 3 WP(C).No.5534 OF 2020(N) that a case is made out for issuing necessary directions to the 2nd respondent to dispose of the stay petition in Ext.P3. Having regard to the limited prayer and the grounds referred to above, this Court is satisfied that the writ petition can be disposed of by this order: (a) The appellate authority/2nd respondent considers and disposes of Ext.P3 stay petition as early as possible, preferably within eight weeks from the date of receipt of copy of this judgment. (b) The respondents are directed not to take coercive steps or recover the amount determined in the orders under appeal for ten weeks from today. (c) Garnishee orders issued in Ext.P4 series are stayed for ten weeks. Sd/- S.V.BHATTI JUDGE hmh 4 WP(C).No.5534 OF 2020(N) APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2017-18 EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT 2017-18 EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT P4 COPY OF NOTICE ISSUED BY THE 3RD RESPONDENT BANK EXHIBIT P4(A) COPY OF NOTICE ISSUED BY THE 4TH RESPONDENT BANK EXHIBIT P4(B) COPY OF NOTICE ISSUED BY THE 5TH RESPONDENT BANK RESPONDENT'S/S EXHIBITS:NIL "