KREALA STATE POWER & INFRASTRUCTURE FINANCE CORPORATRION LTD. V. COMMISSIONER OF INCOME TAX

WP(C)/11524/2013

AI Insights

The case involves the Kerala State Power & Infrastructure Finance Corporation Ltd., a public sector undertaking, which challenged the coercive steps initiated by the income tax authorities following an assessment for the year 2009-10. The assessment led to a Notice of Demand (Ext.P1), against which the petitioner filed an appeal. The First Appellate Authority issued a conditional stay order (Ext.P4), requiring the petitioner to pay 50% of the demand in installments and deferred coercive actions on the remaining 50% until the appeal's resolution or until August 31, 2012, whichever came first. However, the appeal was not resolved by the specified date, leading to further coercive actions by the tax authorities. The petitioner argued that the delay in resolving the appeal should not lead to further actions against them, especially since they had already deposited 75% of the total demand. The court agreed with the petitioner, emphasizing that the delay by the appellate authority should not adversely affect the petitioner.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 755847 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 30-04-2013
• Assessment Year: misc
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: ANIL NAIR; J R NAVAZ; NIVEDITA KAMATH; R SREEJITH
• Keywords: Appeal; Assessment; Coercive Steps; Public sector undertaking; Stay order

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN TUESDAY, THE 30TH DAY OF APRIL 2013/10TH VAISAKHA 1935 WP(C).No. 11524 of 2013 (M) -------------------------------- PETITIONER(S): ---------------- KREALA STATE POWER & INFRASTRUCTURE FINANCE CORPORATION LTD. KPFC BHAVANAM, VELLAYAMBALAM THIRUVANANTHAPURAM 695 010 REP. BY ITS MANAGING DIRECTOR, MS.K.K.DEVI BY ADVS.SRI.ANIL D. NAIR SRI.J.R.PREM NAVAZ SMT.NIVEDITA A.KAMATH SRI.R.SREEJITH RESPONDENT(S): -------------------- 1. COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAWAN, KOWDIAR, THIRUVANANTHAPURAM 695 003 2. THE COMMISSIONER OF INCOME TAX, ADAYAKAR BHAWAN, KOWDIAR, THIRUVANANTHAPURAM 695 003 3. THE ASSISTANT COMMISISONER OF INCOME TAX CIRCLE 1(1) AAYAKAR BHAWAN, KOWDIAR THIRUVANANTHAPURAM 695 003 BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30- 04-2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 11524 of 2013 (M) ---------------------------- APPENDIX PETITIONER(S)' EXHIBITS ----------------------------- EXHIBIT P1 : TRUE COPY OF THE ASSESSMENT ORDER DATED 27-12-2011 (A.Y 2009-10) ALONG WITH COVEING LETTER,ISSUED BY THE 3RD RESPONDENT EXHIBIT P2: TRUE COPY OF THE APPEAL MEMORANDUM DATED 28-01-2012 FILED BEFORE THE 1ST RESPONDENT BY THE PETITIONER (A.Y 2009-10) EXHIBIT P3: TRUE COPY OF THE JUDGMENT DATED 23-02-2012 OF THIS HON'BLE COURT IN WPC NO 4556 OF 2012 EXHIBIT P4: TRUE COPY OF THE RODER OF THE 1ST RESPONDENT DATED 02-04- 2012 (ORDER NO ITA 106/TVM/11-12 EXHIBIT P5: TRUE COPY OF THE NOTICE DATED 04-03-2013 NO CIR-1(1)TVM/12- 13 ISSUED BY THE 3RD RESPONDENT EXHIBIT P6: TRUE COPY OF THE APPLICATION DATED 28-01-2013 MADE BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P7: TRUE COPY OF THE LETTER DATED 07-03-2013 (C.NO.701/J/CIT/8/2012-13) SENT BY THE 2ND RESPONDENT TO THE PETITIONER EXHIBIT P8: TRUE COPY OF THE CHALLAN EVIDENCING PAYMENT OF RS.19,60,000/- DATED 08-03-2013,REF. NO CK 26239505 EXHIBIT P8(A): TRUE COPY OF THE CHALLAN EVIDENCING PAYMENT OF RS.19,60,000/- DATED 21-03-2013 REF.NO CK 26763153 RESPONDENT(S)' EXHIBITS: NIL ------------------------------ /TRUE COPY/ P.A.TO JUDGE K.VINOD CHANDRAN, J. = = = = = = = = = = = = = = = = W.P.(C). No.11524 of 2013 = = = = = = = = = = = = = = = = = = = = = Dated this the 30 th day of April, 2013 JUDGMENT Petitioner, a public sector undertaking is aggrieved by the coercive steps initiated in pursuance to Ext.P1. On the assessment of the petitioner for the year 2009-10 being completed, Notice of Demand was also issued as per Ext.P1. The petitioner promptly approached the First Appellate Authority by way of an appeal and in the interim application for stay, Ext.P4 order was passed. Conditional order of stay was passed by the First Appellate Authority directing payment of 50% of the demand raised in five monthly installments payable from 15.04.2012 to 15.08.2012 . There was also a further direction that in respect of balance 50% of the demand, the petitioner will not be treated as assessee in default till 31.08.2012 or till the disposal of the appeal which ever is earlier. 2. Obviously the Appellate Authority gave itself a wide margin and intended to finish of the appeal by 31.08.2012. W.P.(C). No.11524 of 2013 2 However, that did not materialise and the assessee cannot be prejudiced for the reason only that the First Appellate Authority intended to take up the appeal and dispose it of before 31.08.2012. It is the contention of the assessee that when coercive steps were proceeded after expiry of 31.08.2012, further amounts were also deposited; now making the amounts remitted 75% of the total demand. 3. In any event as noticed above, the fact that the First Appellate Authority was not able to take up the matter and dispose of, the same, cannot prejudice the petitioner. Hence it is directed that no coercive steps shall be taken against the petitioner till disposal of the appeal. This writ petition is allowed as above. K.VINOD CHANDRAN, JUDGE sj "