M/S.KUMBALERI SANDS, V. THE INCOME TAX OFFICER,

WP(C)/25836/2024

AI Insights

M/s. Kumbaleri Sands, represented by its partner Mohanan K.P., filed a writ petition challenging the recovery proceedings initiated based on the assessment and penalty orders issued for the assessment years 2015-2016 and 2016-2017 under the Income Tax Act, 1961. The petitioner had filed appeals against these orders, which were accompanied by applications for condonation of delay and stay. The Income Tax Department opposed the stay, citing the inordinate delay in filing the appeals. The State Bank of India, involved due to a tax recovery notice, also stated there were no funds to satisfy the notice. The court's decision focused on ensuring a fair hearing on the delay and stay petitions before any further recovery actions were taken.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 671605 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 22-07-2024
• Assessment Year: misc
• Other Referred Cases: W.P.(C).NO.19822/2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: P R AJITHKUMAR; G MINI
• Assessee Lawyers: P N NAMBOODIRI; HRITHWIK NAMBOOTHIRI
• Keywords: Appeal; Assessment; Condonation of delay; Income Tax; Penalty; Recovery proceedings; Stay Pending Disposal
• Section: 147; 148; 143(3); 153A; 68

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. MONDAY, THE 22ND DAY OF JULY 2024 / 31ST ASHADHA, 1946 WP(C) NO. 25836 OF 2024 PETITIONER: M/S.KUMBALERI SANDS, KUMALERI POST, MEENANGADI, SULTHAN BATHERY, WAYANAD, PIN – 673 591. REPRESENTED BY ITS PARTNER MOHANAN .K.P. BY ADVS. P.N.DAMODARAN NAMBOODIRI HRITHWIK D. NAMBOOTHIRI RESPONDENTS: 1 THE INCOME TAX OFFICER, INCOME TAX DEPARTMENT, O/O. THE INCOME TAX OFFICE, WARD NO. 2, KALPETTA, WAYANAD, PIN – 673 122. 2 ASSESSMENT UNIT/TECHNICAL UNIT/REVIEW UNIT NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI, REPRESENTED BY ADDITIONAL/ JOINT/ DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, PIN – 110 001. 3 COMMISSIONER OF INCOME TAX (APPEALS) INCOME TAX DEPARTMENT, NATIONAL FACELESS APPEAL CENTRE, NORTH BLOCK, NEW DELHI, PIN – 110 001. 4 THE INCOME TAX OFFICER, INCOME TAX DEPARTMENT, O/O. THE INCOME TAX OFFICE, WARD NO. 1, KALPETTA, WAYANAD, PIN – 673 122. 5 STATE BANK OF INDIA, MEENANGADI BRANCH, SULTAN BATHERY, WAYANAD, PIN – 673 591. BY ADVS. SRI. P R AJITHKUMAR (SC -IT DEPT), SMT. G MINI (SC FOR SBI) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.07.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 25836 OF 2024 2 JUDGMENT The petitioner suffered Exts.P1 to P6 orders under the provisions of the Income Tax Act, 1961, completing the assessment and imposing penalty for the years 2015-2016 and 2016-2017. The petitioner has preferred Ext.P7 series of appeals along with applications for condonation of delay, as also Ext.P8 series of applications for stay pending disposal of the appeal before the Appellate Authority, namely the 3rd respondent. The petitioner apprehends that recovery proceedings will be continued to recover the amounts due in terms of Exts.P1 to P6 orders. 2. The learned Standing Counsel appearing for the Income Tax Department would submit that the appeals have been filed with an inordinate delay and therefore the petitioner is not entitled to any order staying the recovery proceedings pending consideration of the delay petition and the stay petitions. 3. The learned counsel appearing for the 5th respondent bank would submit that there is no amount to the credit of the petitioner to satisfy Ext.P9 notice issued by the Tax Recovery Officer. WP(C) NO. 25836 OF 2024 3 4. Having heard the learned counsel for the petitioner, the learned Standing Counsel for the Income Tax Department and the learned counsel for the 5th respondent bank, this writ petition will stand disposed of directing the 3rd respondent to consider and pass orders on the delay petitions filed along with Ext.P7 series of appeals as also on Ext.P8 series of stay petitions after affording an opportunity of hearing to the petitioner within a period of three months from the date of receipt of a certified copy of this judgment. Till such time as orders are passed on the delay petitions and on the stay petitions, further proceedings for recovery of amounts due in terms of Exts.P1 to P6 orders shall remain suspended. It is made clear that the 3rd respondent needs to pass orders on merits of the stay petitions (Ext.P8 series) only if he decides to condone the delay in filing the appeals. Writ petition will stand disposed of as above. Sd/- GOPINATH P. JUDGE ats WP(C) NO. 25836 OF 2024 4 APPENDIX OF WP(C) 25836/2024 PETITIONER’S EXHIBITS Exhibit - P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 21.12.2019 FOR THE ASSESSMENT YEAR 2015-16 ISSUED BY THE 1ST RESPONDENT. Exhibit - P2 TRUE COPY OF THE ASSESSMENT ORDER DATED 21.12.2019 FOR THE ASSESSMENT YEAR 2016-17 ISSUED BY THE 1ST RESPONDENT. Exhibit - P3 TRUE COPY OF THE PENALTY ORDER DATED 11.06.2021 FOR THE ASSESSMENT YEAR 2015-16 ISSUED BY THE 2ND RESPONDENT. Exhibit - P4 TRUE COPY OF THE PENALTY ORDER DATED 03.08.2021 FOR THE ASSESSMENT YEAR 2016-17 ISSUED BY THE 2ND RESPONDENT. Exhibit - P5 TRUE COPY OF THE PENALTY ORDER DATED 13.01.2022 FOR THE ASSESSMENT YEAR 2015-16 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. Exhibit - P6 TRUE COPY OF THE PENALTY ORDER DATED 14.01.2022 FOR THE ASSESSMENT YEAR 2016-17 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. Exhibit - P7 TRUE COPY OF THE APPEAL ACKNOWLEDGMENT NO. 557817200181223 DATED 18.12.2023 FOR THE YEAR 2015-16 FILED BY THE PETITIONER. Exhibit - P7A TRUE COPY OF THE APPEAL ACKNOWLEDGMENT NO. 557932590181223 DATED 18.12.2023 FOR THE YEAR 2016-17 FILED BY THE PETITIONER. Exhibit - P7B TRUE COPY OF THE APPEAL ACKNOWLEDGMENT NO. 544221380071223 DATED 07.12.2023 FOR THE YEAR 2015-16 FILED BY THE PETITIONER. Exhibit - 7C TRUE COPY OF THE APPEAL ACKNOWLEDGMENT NO. 545253560081223DATED 08.12.2023 FOR THE YEAR 2016- 17 FILED BY THE PETITIONER. WP(C) NO. 25836 OF 2024 5 Exhibit - 7D TRUE COPY OF THE APPEAL ACKNOWLEDGMENT NO. 545714930081223DATED 08.12.2023 FOR THE YEAR 2015- 16 FILED BY THE PETITIONER. Exhibit - 7E TRUE COPY OF THE APPEAL ACKNOWLEDGMENT NO. 545714930081223DATED 08.12.2023 FOR THE YEAR 2016- 17 FILED BY THE PETITIONER. Exhibit -P8 TRUE COPY OF THE STAY PETITION ALONG WITH ACKNOWLEDGEMENT NO.622141111080724 FOR THE YEAR 2015-16 Exhibit - P8A TRUE COPY OF THE STAY PETITION ALONG WITH ACKNOWLEDGEMENT NO. 622628371080724 FOR THE YEAR 2016-17 Exhibit -P8B TRUE COPY OF THE STAY PETITION ALONG WITH ACKNOWLEDGEMENT NO. 621532451080724FOR THE YEAR 2015-16. Exhibit -P8C TRUE COPY OF THE STAY PETITION ALONG WITH ACKNOWLEDGEMENT NO.621856091080724 FOR THE YEAR 2016-17. Exhibit - P8D TRUE COPY OF THE STAY PETITION ALONG WITH ACKNOWLEDGEMENT NO.623204281080724 FOR THE YEAR 2015-16. Exhibit- P8E TRUE COPY OF THE STAY PETITION ALONG WITH ACKNOWLEDGEMENT NO. 721092461150724 FOR THE YEAR 2015-16. Exhibit - P9 TRUE COPY OF THE PROHIBITORY ORDER NO:ITBA/RCV/S/226(3)_1/2023-24/ 1057445951(1) DATED 27.10.2023 FOR THE ASSESSMENT YEARS 2015-16 & 2016-17 ISSUED BY THE 4TH RESPONDENT TO THE PETITIONER . Exhibit - P10 TRUE COPY OF THE JUDGMENT IN W.P.(C).NO.19822/2024 DATED 05.06.2024 . "