M/S LOGIX WAREHOUSES V. UNION OF INDIA

WP(C)/3027/2024

AI Insights

The case involves M/s Logix Warehouses, the petitioner, who did not file income tax returns for the assessment year 2015-16 despite conducting significant property transactions. The Income Tax Officer reopened the case under Section 147 of the Income Tax Act, leading to an assessment order that imposed tax and penalties on the petitioner. The petitioner appealed against this order but did not initially file a stay petition. Subsequently, a stay application was filed, which was subject to the condition of depositing 20% of the assessed amount as per a CBDT circular. The court's decision focused on ensuring the automatic stay of further recovery actions pending the appeal's outcome, contingent on the deposit of the specified percentage.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 741180 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 29-01-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: P R KUMAR
• Assessee Lawyers: ISAC JOHN NELLIMALA SARAI
• Keywords: Assessment Order; Income Tax; Mandamus; Recovery proceedings; Stay Application; Writ petition
• Section: 147; 148; 142(1); 246A; 226; 227

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH MONDAY, THE 29TH DAY OF JANUARY 2024 / 9TH MAGHA, 1945 WP(C) NO. 3027 OF 2024 PETITIONER/S: M/S LOGIX WAREHOUSES 2/414B, 1ST FLOOR, MANIYATTUKUDY BUILDING, AMBATTUKAVU, THAIKKATTUKARA P.O., ERNAKULAM DISTRICT, NOW HAVING ADDRESS AT DOOR NO. 4/32-A, DEPOT ROAD, UDYOGMANDAL P.O., ERNAKULAM DISTRICT, REPRESENTED BY ITS PARTNER, PIN - 683106 BY ADVS. ISAC T.PAUL JOHN NELLIMALA SARAI RESPONDENT/S: 1 UNION OF INDIA REPRESENTED BY SECRETARY, MINISTRY OF FINANCE, NORTH BLOCK, RAJ PATH, NEW DELHI, PIN - 110001 2 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS ASSESSMENT CENTRE, DELHI, PIN - 110003 3 THE INCOME TAX OFFICER NATIONAL FACELESS ASSESSMENT CENTRE, DELHI, PIN - 110003 OTHER PRESENT: P.R. AJITH KUMAR-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C)No.3027 of 2024 2 JUDGMENT Dated this the 29th day of January, 2024 The present writ petition under Article 226/227 of the Constitution of India has been filed seeking the following prayers: (a) Issue appropriate writ of mandamus or other appropriate writ or order directing the 3rd respondent to consider and dispose Exhibit-P5 stay application after hearing the petitioner within a specified time frame fixed by this Hon’le Court; (b) Issue appropriate writ or order directing the respondents to keep the proceedings for recovery of income tax from the petition pending till the disposal of Exhibit-P5 stay application. (c) Grant such other and further reliefs as this Hon’ble Court may deem fit to grant in the facts and circumstances of the case. 2. The petitioner, an assessee under the provisions of the Income Tax Act did not file its returns of income for the assessment year 2015-16. As per the information available from the Multiyear NMS on AIMS module of the ITBA Portal, the assessee had carried out purchase/sale deed of immovable property valued at WP(C)No.3027 of 2024 3 Rs.3,00,00,000/- during the financial year 2014-15 relevant to the assessment year 2015-16. The petitioner’s case was re-opened for the said assessment year 2015-16 under Section 147 of the Income Tax Act and after necessary compliance of the provisions of Sections 142(1) and 148 etc, the assessment order in Ext.P1 has been finalized on 22.03.2022. The petitioner’s income has been assessed as Rs.3,00,00,000/- for the said assessment year on which tax and penalty have been imposed. The petitioner has filed appeal before the 2nd respondent against the said assessment order, however, without any stay petition. The petitioner has moved an application before the assessing authority for staying the recovery. As per the circular issued by the CBDT, the assessing authority has power to stay the recovery subject to the deposit of 20% of the assessed amount. 3. If the petitioner deposits 20% of the amount, there would be an automatic stay. WP(C)No.3027 of 2024 4 4. The assessing authority once passes the assessment order, it becomes functus-official and cannot decide the stay application on merit. Therefore, as per the provisions of the said circular, if the petitioner deposits 20% of the assessed tax, there would be an automatic stay of the further recovery of the assessment amount till finalization of the appeal by the Appellate Authority 5. Learned counsel for the petitioner submits that the petitioner will deposit 20% of the assessed amount within a period of two weeks from today. 6. In view thereof, it is provided that subject to making deposit of 20% within period of two weeks, further recovery of the assessed amount shall be kept in abeyance till disposal of the appeal pending before the 2nd respondent. With the aforesaid direction, the present writ petition stands finally disposed of. Sd/- DINESH KUMAR SINGH JUDGE AP WP(C)No.3027 of 2024 5 APPENDIX OF WP(C) 3027/2024 PETITIONER EXHIBITS Exhibit-P1 TRUE PHOTOCOPY OF THE ASSESSMENT ORDER DATED 22/03/2022 PASSED BY THE 3RD RESPONDENT Exhibit-P2 TRUE PHOTOCOPY OF THE DEMAND NOTICE WITH COMPUTATION SHEET DATED 22/03/2022 ISSUED BY THE 3RD RESPONDENT Exhibit-P3 TRUE PHOTOCOPY OF MEMORANDUM OF APPEAL DATED 18/04/2022 FILED BY THE PETITIONER UNDER SECTION 246A OF THE INCOME TAX ACT, 1961 BEFORE 2ND RESPONDENT Exhibit-P4 . TRUE PHOTOCOPY OF THE EMAIL DATED 18/12/2023 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER Exhibit-P5 TRUE PHOTOCOPY OF THE STAY APPLICATION DATED 19/12/2023 FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT "