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

WP(C)/8137/2019

AI Insights

The case involves the Kerala State Beverages (Manufacturing and Marketing) Corporation Ltd., which filed writ petitions against the revenue recovery actions initiated by the Income Tax Department during the pendency of their appeals for the assessment years 2014-15, 2015-16, and 2016-17. The petitions challenged the recovery actions despite ongoing appeals and interim stays previously granted by the court. The Appellate Tribunal had dismissed the initial appeals, but upon review, the tribunal decided to hear the appeals on their merits. The court's decision to direct the Appellate Authorities to expedite their decisions was based on the need to resolve the ongoing disputes and uphold the interim stay against recovery proceedings.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 758546 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 25-10-2019
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM; P M MURICKEN; A S P KURUP; SANTHEEP ANKARATH; M M JASMINE
• Assessee Lawyers: ANIL NAIR; R SREEJITH; ACHYUT PADMARAJ; ARYA ANIL; GOKULRAJ
• Keywords: Appellate Tribunal; Assessment Order; Income Tax; Revenue recovery; Stay of recovery
• Section: 263

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR FRIDAY, THE 25TH DAY OF OCTOBER 2019 / 3RD KARTHIKA, 1941 WP(C).No.8137 OF 2019(N) PETITIONER: KERALA STATE BEVERAGES (MANUFACTURING AND MARKETING) CORPORATION LTD. SASTHAKRIPA OFFICE COMPLEX, P.B.NO.2263, SASTHAMANGALAM, THIRUVANANTHAPURAM-695010, REPRESENTED BY ITS GENERAL MANAGER-FINANCE, SUNIL KUMAR.S. BY ADVS. SRI.ANIL D. NAIR SRI.R.SREEJITH SRI.ACHYUT K PADMARAJ SMT. ARYA ANIL SHRI.GOKULRAJ L. RESPONDENTS: 1 PRINCIPAL COMMISSIONER OF INCOME TAX, 4TH FLOOR, AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM-695003. 2 INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH-682030. 3 THE PRINCIPAL OFFICER/BRANCH MANAGER, CANARA BANK, CONTONMENT BRANCH, THIRUVANANTHAPURAM- 695001. 4 THE PRINCIPAL OFFICER/BRANCH MANAGER, UNION BANK OF INDIA, CHALAI BRANCH, THIRUVANANTHAPURAM-695001. 5 THE DEPUTY GENERAL MANAGER, FEDERAL BANK, ZONAL OFFICE, THIRUVANANTHAPURAM- 695001. 6 THE PRINCIPAL OFFICER/BRANCH MANAGER, PUNJAB NATIONAL BANK, STATUE BRANCH, THIRUVANANTHAPURAM-695001. W.P(C) Nos.8137/19, 8138/19 & 8166/19 :2: R1&R2 BY SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT R3 BY SRI.P.M.MURICKEN R4 BY SRI.ASP KURUP R6 SRI.SANTHEEP ANKARATH THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 25.10.2019, ALONG WITH WP(C).8138/2019(N) AND WP(C).8166/2019(U), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C) Nos.8137/19, 8138/19 & 8166/19 :3: IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR FRIDAY, THE 25TH DAY OF OCTOBER 2019 / 3RD KARTHIKA, 1941 WP(C).No.8138 OF 2019(N) PETITIONER: KERALA STATE BEVERAGES (MANUFACTURIING AND MARKETING) CORPORATION LTD. PALAYAM, VIKAS BHAVAN.P.O., THIRUVANANTHAPURAM, REPRESENTED BY ITS GENERAL MANAGER-FINANCE, SUNIL KUMAR.S. BY ADVS. SRI.ANIL D. NAIR SRI.R.SREEJITH SRI.ACHYUT K PADMARAJ SMT. ARYA ANIL SRI.GOKULRAJ L. RESPONDENTS: 1 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1(1), THIRUVANANTHAPURAM-695001. 2 COMMISSIONER OF INCOME TAX (APPEALS), THIRUVANANTHAPURAM-695001. 3 INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, KAKANAD, COCHIN-682030. 4 THE PRINCIPAL OFFICER/BRANCH MANAGER, CANARA BANK, CONTONMENT BRANCH, THIRUVANANTHAPURAM- 695001. W.P(C) Nos.8137/19, 8138/19 & 8166/19 :4: 5 THE PRINCIPAL OFFICER/BRANCH MANAGER, UNION BANK OF INDIA, CHALAI BRANCH, THIRUVANANTHAPURAM-695001. 6 THE DEPUTY GENERAL MANAGER, FEDERAL BANK, ZONAL OFFICE, THIRUVANANTHAPURAM- 695001. 7 THE PRINCIPAL OFFICER/DISTRICT TREASURY OFFICER, DISTRICT TREASURY SECRETARIAT, THIRUVANANTHAPURAM- 695001. 8 THE PRINCIPAL OFFICER/BRANCH MANAGER, PUNJAB NATIONAL BANK, STATUE BRANCH, THIRUVANANTHAPURAM-695001. R1 TO R3 BY SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT R4 BY SRI.P.M.MURICKEN R5 BY SRI.ASP KURUP R8 SRI.SANTHEEP ANKARATH GOVT.PLEADER SMT. M.M.JASMINE FOR R7 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 25.10.2019, ALONG WITH WP(C).8137/2019(N)AND WP(C).8166/2019(U), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C) Nos.8137/19, 8138/19 & 8166/19 :5: IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR FRIDAY, THE 25TH DAY OF OCTOBER 2019 / 3RD KARTHIKA, 1941 WP(C).No.8166 OF 2019(U) PETITIONER: KERALA STATE BEVERAGES(MANUFACTURING AND MARKETING) CORPORATION LTD., PALAYAM, VIKAS BHAVAN P.O., THIRUVANANTHAPURAM - 695 03, REPRESENTED BY ITS GENERAL MANAGER - FINANCE, SUNIL KUMAR S. BY ADVS. SRI.ANIL D. NAIR SRI.R.SREEJITH SMT. ARYA ANIL SRI.ACHYUT K PADMARAJ SHRI.GOKULRAJ L. RESPONDENTS: 1 ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1 (1), THIRUVANANTHAPURAM - 695 001 2 COMMISSIIONER OF INCOME TAX (APPEALS) THIRUVANANTHAPURAM - 695 001 3 THE PRINCIPAL OFFICER/BRANCH MANAGER CANARA BANK, CONTONMENT BRANCH, THIRUVANANTHAPURAM - 695 001 4 THE PRINCIPAL OFFICER/BRANCH MANAGER, UNION BANK OF INDIA, CHALAI BRANCH, THIRUVANANTHAPURAM - 695 001 W.P(C) Nos.8137/19, 8138/19 & 8166/19 :6: 5 THE DEPUTY GENERAL MANAGER FEDERAL BANK, ZONAL OFFICE, THIRUVANANTHAPURAM - 695 001 6 THE PRINCIPAL OFFICER/DISTRICT TREASURY OFFICER DISTRICT TREASURY SECRETARIAT, THIRUVANANTHAPURAM - 695 001 7 THE PRINCIPAL OFFICER/BRANCH MANAGER PUNJAB NATIONAL BANK, STATUE BRANCH, THIRUVANANTHAPURAM - 695 001 R1&R2 BY SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT R6 BY GOVT.PLEADER SMT.M.M.JASMINE R3 BY SRI.P.M.MURICKEN R4 BY SRI.ASP KURUP R7 SRI.SANTHEEP ANKARATH THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 25.10.2019, ALONG WITH WP(C).8137/2019(N)AND WP(C).8138/2019(N), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C) Nos.8137/19, 8138/19 & 8166/19 :7: JUDGMENT As all these Writ Petitions involve a common issue, they are taken up for consideration together, and disposed by this common judgment. 2. The petitioner is the Kerala State Beverages (M&M) Corporation. For the assessment years 2014-15, 2015-16 and 2016-17, assessment orders were passed against it under the Income Tax Act. For the year 2014-15, against a Section 263 order, it approached the First Appellate Tribunal through Appeal No.536 of 2019 and the matter is pending consideration before the said Tribunal. Similarly, for the assessment year 2015-16, aggrieved by the assessment order and the first appellate order, they approached the Appellate Tribunal through Appeal No.537 of 2019 and the said appeal is also pending before the said Tribunal. For the assessment year 2016-17, in an appeal preferred against an order of assessment before the First Appellate Authority, the First Appellate Authority rejected their application for stay. While the order rejecting the stay application has been impugned in the writ petition, the appeal continues to be pending before the First Appellate Authority as Appeal No.325/TVM/18-19. 3. The grievance of the petitioner in all these Writ Petitions is against the revenue recovery action that was initiated against them by the respondents at a time when their Appeals before the appellate authorities were pending. While this Court had granted a stay of recovery pending disposal of the W.P(C) Nos.8137/19, 8138/19 & 8166/19 :8: appeals by the Appellate Tribunal, it would appear that the Appellate Tribunal subsequently considered the appeals and dismissed the same. The petitioner thereafter filed review petitions before the Tribunal, and it is stated, the said review petitions were allowed and the appeals heard on the points agitated. The Tribunal has now taken up the appeals for orders. In the recovery proceedings that were initiated by the respondents when the appeals were dismissed, the recoveries effected were appropriated towards the tax liability confirmed on the petitioner for the year 2016-17. 4. I have heard Sri.Anil D.Nair, the learned counsel for the petitioner and Sri.Christopher Abraham, the learned Standing Counsel for the respondent Income Tax department. 5. On a consideration of the rival submissions, I am of the view that inasmuch as there has been an interim order in force against recovery proceedings in these Writ Petitions and now the Appellate Tribunal has already heard the appeals covered by W .P .(C) Nos.8137 of 2019 and 8138 of 2019 and the appeal covered by W .P(C) No.8166 of 2019 is pending adjudication before the First Appellate Authority, these writ petitions can be disposed by directing the Appellate Authority concerned to pass orders in the pending proceedings before them. I, therefore, direct the Appellate Tribunal/Commissioner of Income Tax (Appeals) to pass final orders in the appeals/miscellaneous applications pending before them expeditiously, after hearing the petitioner. It is made clear that till such time as orders are W.P(C) Nos.8137/19, 8138/19 & 8166/19 :9: passed by the said Appellate Authorities, as directed, and the orders communicated to the petitioner, the stay against recovery proceedings granted by this Court shall continue to operate in favour of the petitioner. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE okb //True copy// P.S. to Judge W.P(C) Nos.8137/19, 8138/19 & 8166/19 :10: APPENDIX OF WP(C) 8137/2019 PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ORDER OF THE RESPONDENT U/S.263 OF THE ACT DATED 25.9.2018. EXHIBIT P2 TRUE COPY OF THE APPEAL FILED BEFORE THE 2ND RESPONDENT. EXHIBIT P3 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT. EXHIBIT P4 TRUE COPY OF THE JUDGMENT DATED 23.1.2019 IN W.A.NO.80 OF 2019. EXHIBIT P5 TRUE COPY OF THE PROCEEDINGS DATED 15.3.2019 TO THE 3RD RESPONDENT. EXHIBIT P6 TRUE COPY OF THE PROCEEDINGS DATED 15.3.2019 TO THE 4TH RESPONDENT. EXHIBIT P7 TRUE COPY OF THE PROCEEDINGS DATED 15.3.2019 TO THE 5TH RESPONDENT. EXHIBIT P8 TRUE COPY OF THE PROCEEDINGS DATED 15.3.2019 TO THE 6TH RESPONDENT. EXHIBIT P9 TRUE COPY OF THE RECONCILIATION OF AMOUNTS RECOVERED UNDER SECTION 226(3). EXHIBIT P10 TRUE COPY OF THE ASSESSMENT ORDER DT.9.11.2018 ISSUED BY THE RESPONDENT EXHIBIT P11 TRUE COPY OF THE REPLY ISSUED BY THE RESPONDENT DATED 29.3.2019 EXHIBIT P12 TRUE COPY OF LETTER DATED 12.4.2019 SUBMITTED BY THE PETITIONER W.P(C) Nos.8137/19, 8138/19 & 8166/19 :11: APPENDIX OF WP(C) 8138/2019 PETITIONER'S/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 THE JUDGMENT DATED 26.6.2018 IN WRIT APPEAL NO.1007 OF 2018. EXHIBIT P3 TRUE COPY OF THE FIRST APPELLATE ORDER DATED 5.11.2018. EXHIBIT P4 TRUE COPY OF THE JUDGMENT DATED 26.2.2019 IN WRIT PETITION NO.37083 OF 2018. EXHIBIT P5 TRUE COPY OF NOTICE UNDER SECTION 226(3) DATED 15.3.2019 ISSUED TO 4TH RESPONDENT. EXHIBIT P6 TRUE COPY OF NOTICE UNDER SECTION 226(3) DATED 15.3.2019 ISSUED TO 5TH RESPONDENT. EXHIBIT P7 TRUE COPY OF NOTICE UNDER SECTION 226(3) DATED 15.3.2019 ISSUED TO 6TH RESPONDENT. EXHIBIT P8 TRUE COPY OF NOTICE UNDER SECTION 226(3) DATED 15.3.2019 ISSUED TO 7TH RESPONDENT. EXHIBIT P9 TRUE COPY OF NOTICE UNDER SECTION 226(3) DATED 15.3.2019 ISSUED TO 8TH RESPONDENT. EXHIBIT P10 TRUE COPY OF THE RECONCILIATION OF AMOUNTS RECOVERED UNDER SECTION 226(3). EXHIBIT P11 TRUE COPY OF THE RECTIFICATION PETITION ALONG WITH STAY PETITION BEFORE THE TRIBUNAL W.P(C) Nos.8137/19, 8138/19 & 8166/19 :12: APPENDIX OF WP(C) 8166/2019 PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER FOR TYE ASSESSMENT YEAR 2016-17 DATED 28.12.2018 PASSED BY THE FIRST RESPONDENT EXHIBIT P2 TRUE COPY OF THE JUDGMENT DATED 28.01.2019 IN W.P.(C)NO. 2532 OF 2019 EXHIBIT P3 TRUE COPY OF THE ORDER ON STAY PETITION DATED 08.03.2019 EXHIBIT P4 TRUE COPY OF THE NOTICE UNDER SECTION 223(3) DATED 15.03.20119 ISSUED TO 3RD RESPONDENT EXHIBIT P5 TRUE COPY OF THE NOTICE UNDER SECTION 226(3) DATED 15.03.2019 ISSUED TO 4TH RESPONDENT EXHIBIT P6 TRUE COPY OF THE NOTICE UNDER SECTION 226(3) DATED 15.03.2019 ISSUED TO 5TH RESPONDENT EXHIBIT P7 TRUE COPY OF THE NOTICE UNDER SECTION 226(3) DATED 15.03.2019 ISSUED TO 6TH RESPONDENT EXHIBIT P8 TRUE COPY OF THE NOTICE UNDER SECTION 226(3) DATED 15.03.2019 ISSUED TO 7TH RESPONDENT EXHIBIT P9 TRUE COPY OF THE RECONCILIATION OF AMOUNTS RECOVERED UNDER SECTION 226(3) "