M/S. KERALA STATE BEVERAGES (M&M) CORPORATION LTD. V. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1 (1),

WP(C)/19442/2014

AI Insights

The case involves M/S. Kerala State Beverages (M&M) Corporation Ltd., which filed a writ petition against the Assistant Commissioner of Income Tax and the Commissioner of Income Tax (Appeals) concerning conditional orders for the assessment years 2007-08 and 2008-09. The petitioner contested the appellate authority's decision that required payment of 50% of the tax demand in installments, arguing that a similar issue had been previously settled by a Division Bench of the High Court, which directed payment of only 10% of the demand during the appeal process. The court reviewed the compliance of the petitioner with the previous court's directive and decided to keep the recovery proceedings in abeyance pending the disposal of the appeals.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 755740 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 08-08-2014
• Assessment Year: misc
• Other Referred Cases: WP(C).No. 11251 of 2014, W.A. NO. 437 of 2014
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: ANIL NAIR; R NAIR; C S SULEKHA BEEVI; JOESEPH CHEMPLAYIL; SOUMYA PRAKASH
• Keywords: Assessment years; Conditional Order; First Appellate Authority; Quasi-judicial; Recovery proceedings

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN FRIDAY , THE 8TH DAY OF AUGUST 2014/17TH SRAV ANA, 1936 WP(C).No. 19442 of 2014 (E) ---------------------------- PETITIONER(S): -------------------------- M/S. KERALA STATE BEVERAGES (M&M) CORPORATION LTD., SASTHAKRIPA OFFICE COMPLEX, P.B NO.2263, SASTHAMANGALAM, TRIVANDRUM, REPRESENTED BY COMPANY SECRETARY, JOHN JOSEPH. BY ADVS.SRI.ANIL D. NAIR, SRI.R.SREEJITH R.NAIR, SMT.C.S.SULEKHA BEEVI, SRI.JOSE JOSEPH (CHEMPLAYIL), SRI. SOUMYA PRAKASH. RESPONDENT(S): ---------------------------- 1. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1 (1), TRIVANDRUM-695 001. 2. THE COMMISSIONER OF INCOME TAX [APPEALS], TRIVANDRUM-695 001. BY ADV. SRI.JOSE JOSEPH, SC, INCOME TAX. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08-08-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs. WP(C).No. 19442 of 2014 (E) APPENDIX PETITIONER'S EXHIBITS:- EXHIBIT P1. COPY OF THE ASSESSMENT ORDER DATED 14.03.2014 FOR THE YEAR 2007-08 ISSUED TO THE PETITIONER BY THE FIRST RESPONDENT. EXHIBIT P2. COPY OF THE ASSESSMENT ORDER DATED 13.03.2014 FOR THE YEAR 2008-09 ISSUED TO THE PETITIONER BY THE FIRST RESPONDENT. EXHIBIT P3. COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2007-08. EXHIBIT P4. COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2008-09. EXHIBIT P5. COPY OF THE STA Y PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2007-08. EXHIBIT P6. COPY OF THE STA Y PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2008-09. EXHIBIT P7. COPY OF THE JUDGMENT DATED 22.04.2014 IN WP(C).NO. 11251 OF 2014. EXHIBIT P8. COPY OF THE ORDER DATED 04.07.2014 FOR THE YEAR 2007-08 AND 2008-09 ISSUED TO THE PETITIONER BY THE 2ND RESPONDENT. EXHIBIT P9. COPY OF THE JUDGMENT DATED 14.03.2014 IN W.A. NO. 437 OF 2014. RESPONDENT'S EXHIBITS:- NIL. //TRUE COPY// P.A. TO JUDGE rs. K. VINOD CHANDRAN, J. ===================== W.P.(C) No. 19442 of 2014 ====================== Dated this the 8th day of August, 2014 J U D G M E N T The petitioner is aggrieved with the conditional order passed in first appeal for the assessment years 2007-08 and 2008-09. By Ext.P8, a conditional order was passed directing payment of balance 50% of the demand, by instalments. The learned Counsel for the petitioner would contend that, in fact, in the earlier round of litigation for two subsequent years, the very same issue arose and the same was unsuccessfully agitated before the first appellate authority and on filing an appeal before the Tribunal, a Division Bench of this Court had granted a conditional order directing payment of 10% of the demand. 2. In the years, which are the subject matter of the present Writ Petition also, when the petitioner approached this Court, while the appeals and stay applications were pending consideration before the first appellate authority, W.P.(C) No. 19442 of 2014 2 this Court by Ext.P7 directed payment of 1/10th of the amount due, under the assessment orders for both the years. The petitioner has complied with the said order. 3. On going through Ext.P8 order of the first appellate authority, it is seen that the appellate authority was considerably influenced by the finding in first appeal of the subsequent years. The first appellate authority having taken a view in the matter, the present incumbent cannot deviate from such findings. It is a moot question as to whether departmental discipline should be brought into the functioning of quasi-judicial authorities. In any event, it is to be noticed that, the order passed by the predecessor is pending in appeal before the Tribunal and a Division Bench of this Court thought it fit that, the appeal can be proceeded with and concluded on payment of 10% of the amount demanded. 4. In such circumstance, the petitioner having complied with the condition imposed in Ext.P7, it is only W.P.(C) No. 19442 of 2014 3 proper that the appeal be considered on merits and in the meanwhile, recovery proceedings kept in abeyance. If the petitioner has complied with the condition in Ext.P7, necessarily,the recovery proceedings shall not be proceeded with till the appeals are disposed of. The Writ Petition is disposed of. K. VINOD CHANDRAN, JUDGE SB "