KERALA STATE BEVERAGES (MANUFACTURING AND MARKETING) CORPORATION LTD. V. ASSISTANT COMMISSIONER OF INCOME TAX,

WP(C)/37083/2018

AI Insights

The case involves the Kerala State Beverages (Manufacturing and Marketing) Corporation Ltd., which filed a writ petition against the Assistant Commissioner of Income Tax and others after their bank account was frozen following an assessment order. The petitioner had previously obtained a stay on the assessment order from the High Court, but the tax authorities proceeded with coercive measures without communicating the order to the petitioner. The petitioner sought to continue the stay until the Income Tax Appellate Tribunal could consider their stay petition regarding the appeal against the assessment order.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 754918 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 26-02-2019
• Assessment Year: misc
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: ANIL NAIR; ARYA ANIL; NILOOFER NIZAM; R SREEJITH
• Keywords: Assessment Order; Bank Account Frozen; Coercive Steps; Income Tax; Stay Petition

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU TUESDAY ,THE 26TH DAY OF FEBRUARY 2019 / 7TH PHALGUNA, 1940 WP(C).No. 37083 of 2018 PETITIONER: KERALA STATE BEVERAGES (MANUFACTURING AND MARKETING) CORPORATION LTD. PALAYAM, VIKAS BHAVAN P.O., THIRUVANANTHAPURAM 695003,REPRESENTED BY ITS GENERAL MANAGER-FINANCE, SUNIL KUMAR S. BY ADVS. SRI.ANIL D. NAIR SMT. ARYA ANIL SMT. NILOOFAR O. NIZAM SRI.R.SREEJITH RESPONDENTS: 1 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1 (1), THIRUVANANTHAPURAM- 695 001. 2 3 COMMISSIONER OF INCOME TAX (APPEALS), THIRUVANANTHAPURAM-695001. INCOME TAX APPELLATE TRIBUNAL, KOCHI OTHER PRESENT: SC SRI. CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.02.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.37083 of 2018 2 JUDGMENT Against the Ext.P1 assessment order, the petitioner filed a statutory appeal and the stay petition. Through the Ext.P2 judgment a Division Bench of this Court granted absolute stay till that appeal was disposed of. Later, when the petitioner's bank account was frozen, it filed this writ petition contending that the authorities had not communicated the order to it; yet they initiated coercive steps to recover the tax. 2. Given the later developments, now, the petitioner has brought on record not only the copy of the order in appeal but also the petitioner's further challenge against that appeal before the Tribunal. Now the petitioner wants this Court to continue the stay granted earlier in this writ petition until the Appellate Tribunal considers the petitioner's stay petition in that second appeal. 3. To issue such a direction as sought by the petitioner, I reckon, the Statutory Tribunal ought to be a party on record. So I suo motu add the Income Tax Appellate Tribunal, Kochi, as the third respondent. The Registry will ensure that the additional respondent is suo motu impleaded. 4. Heard Sri Anil D.Nair, the learned counsel for the petitioner and WPC No.37083 of 2018 3 Sri Christopher Abraham, the learned Standing Counsel appearing for the respondents. Under these circumstances, I dispose of this Writ Petition holding that the authorities will defer the coercive steps until the third respondent Tribunal considers the petitioner's stay petition— Ext.P8. The Tribunal may consider the stay petition expeditiously. Sd/- DAMA SESHADRI NAIDU JUDGE Css/ WPC No.37083 of 2018 4 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF ORDER DATED 28.12.2017 SERVED ON THE PETITIONER BY THE FIRST RESPONDENT EXHIBIT P2 TRUE COPY OF JUDGMENT DATED 26.6.2018 IN WRIT PETITION NO.1007/2018 EXHIBIT P3 TRUE COPY OF THE ARGUMENT NOTE FILED BY THE PETITIONER BEFORE THE SECOND RESPONDENT EXHIBIT P4 TRUE COPY OF LETTER DATED 8.11.2018 SERVED BY THE FIRST RESPONDENT TO THE PETITIONER EXHIBIT P5 TRUE COPY OF LETTER DATED 12.11.2018 PRODUCED BY THE PETITIONER TO THE 1ST RESPONDENT EXHIBIT P6 TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), THIRUVANANTHAPURAM FOR THE RETURN PERIOD 2015-16. EXHIBIT P7 TRUE COPY OF THE APPEAL MEMORANDUM FILED BY PETITIONER BEFORE THE INCOME TAX APPELLATE TRIBUNAL FOR THE RETURN PERIOD 2015-16. EXHIBIT P8 TRUE COPY OF THE STAY PETITION FILED BEFORE THE INCOME TAX APPELLATE TRIBUNAL FOR THE RETURN PERIOD 2015-16 "