SHAJAHAN V. THE DEPUTY COMMISSIONER OF INCOME TAX

WP(C)/19356/2014

AI Insights

The petitioner, M. Shajahan, challenged the assessment orders for the years 2007-08 to 2011-12 and the subsequent recovery proceedings and interest liabilities initiated by the Income Tax Department. The petitioner had filed appeals against the assessment orders and stay applications, which were pending before the appellate authority. The main contention was the initiation of recovery proceedings despite the pending appeals and stay applications. The court found it appropriate to keep the recovery proceedings in abeyance until the appellate authority could consider the stay applications, while upholding the automatic interest liability under Section 220(2) of the Income Tax Act.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 699924 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 30-07-2014
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: M R RAJESH; E S SANDHYA
• Keywords: Income tax assessment; Interest liability; Recovery proceedings; Stay Application
• Section: 220(2); 220

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN WEDNESDAY, THE 30TH DAY OF JULY 2014/8TH SRAV ANA, 1936 WP(C).No. 19356 of 2014 (T) ---------------------------- PETITIONER(S): -------------------------- M. SHAJAHAN, AMINAS, NAGAROOR ROAD, KALLAMBALAM, KALLAMBALAM P.O., THIRUVANANTHAPURAM DISTRICT. BY ADVS.SRI.M.R.RAJESH, SMT.E.S.SANDHYA. RESPONDENT(S): ---------------------------- 1. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, 4TH FLOOR, ANNEXE, AAYKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM-695 003. 2. THE COMMISSIONER OF INCOME TAX (APPEALS)-III, KERA BHAVAN, 6TH FLOOR, SRVHS ROAD, COCHIN-682 016. 3. THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, 4TH FLOOR, ANNEXE, AAYKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, PIN-695 003. BY ADV. SRI.JOSE JOSEPH, SC, INCOME TAX. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30-07-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs. WP(C).No. 19356 of 2014 (T) APPENDIX PETITIONER'S EXHIBITS:- EXT.P1 COPY OF THE ASSESSMENT ORDER DATED 31/03/2014 FOR THE ASSESSMENT YEAR 2007-08. EXT.P1A COPY OF THE ASSESSMENT ORDER DATED 31/03/2014 FOR THE ASSESSMENT YEAR 2008-09. EXT.P1B COPY OF THE ASSESSMENT ORDER DATED 31/03/2014 FOR THE ASSESSMENT YEAR 2009-10. EXT.P1C COPY OF THE ASSESSMENT ORDER DATED 31/03/2014 FOR THE ASSESSMENT YEAR 2010-11. EXT.P1D COPY OF THE ASSESSMENT ORDER DATED 31/03/2014 FOR THE ASSESSMENT YEAR 2011-12. EXT.P2 COPY OF THE MEMORANDUM OF APPEAL DATED 24/04/2014 FOR THE ASSESSMENT YEAR 2007-08 SUBMITTED BEFORE THE SECOND RESPONDENT. EXT.P2A COPY OF THE MEMORANDUM OF APPEAL DATED 24/04/2014 FOR THE ASSESSMENT YEAR 2008-09 SUBMITTED BEFORE THE SECOND RESPONDENT. EXT.P2B COPY OF THE MEMORANDUM OF APPEAL DATED 24/04/2014 FOR THE ASSESSMENT YEAR 2009-10 SUBMITTED BEFORE THE SECOND RESPONDENT. EXT.P2C COPY OF THE MEMORANDUM OF APPEAL DATED 24/04/2014 FOR THE ASSESSMENT YEAR 2010-11 SUBMITTED BEFORE THE SECOND RESPONDENT. EXT.P2D COPY OF THE MEMORANDUM OF APPEAL DATED 24/04/2014 FOR THE ASSESSMENT YEAR 2011-12 SUBMITTED BEFORE THE SECOND RESPONDENT. EXT.P3 COPY OF THE STAY PETITION DATED 02/06/2014 FOR THE ASSESSMENT YEAR 2007-08. EXT.P3A COPY OF THE STAY PETITIONS DATED 02/06/2014 FOR THE ASSESSMENT YEAR 2008-09. EXT.P3B COPIES OF THE STAY PETITIONS DATED 02/06/2014 FOR THE ASSESSMENT YEAR 2009-10. EXT.P3C COPIES OF THE STAY PETITIONS DATED 02/06/2014 FOR THE ASSESSMENT YEAR 2010-11. EXT.P3D COPIES OF THE STAY PETITIONS DATED 02/06/2014 FOR THE ASSESSMENT YEAR 2011-12. ........2/- WP(C).No. 19356 of 2014 (T) EXT.P4 COPY OF THE ORDER NO.BCRPM6622A/CTRL.CIR-1/TVM/2013-14 DATED 15/05/2014 U/SEC.220 ISSUED BY THE FIRST RESPONDENT. EXT.P5 COPY OF THE ORDERS ISSUED BY THE 3RD RESPONDENT U/SEC.220(2) OF THE INCOME TAX ACT, DATED 16/06/2014 FOR THE ASSESSMENT YEARS 2007-08. EXT.P5A COPY OF THE ORDERS ISSUED BY THE 3RD RESPONDENT U/SEC.220(2) OF THE INCOME T AX ACT, DATED 16/06/2014 FOR THE ASSESSMENT YEARS 2008-09. EXT.P5B COPY OF THE ORDERS ISSUED BY THE 3RD RESPONDENT U/SEC.220(2) OF THE INCOME TAX ACT, DATED 16/06/2014 FOR THE ASSESSMENT YEARS 2009-10. EXT.P5C COPY OF THE ORDERS ISSUED BY THE 3RD RESPONDENT U/SEC.220(2) OF THE INCOME TAX ACT, DATED 16/06/2014 FOR THE ASSESSMENT YEARS 2010-11. EXT.P5D COPY OF THE ORDERS ISSUED BY THE 3RD RESPONDENT U/SEC.220(2) OF THE INCOME TAX ACT, DATED 16/06/2014 FOR THE ASSESSMENT YEARS 2011-12. EXT.P6 COPY OF THE DEMAND NOTICE DATED 27/06/2014 FOR THE ASSESSMENT YEAR 2007-08. EXT.P6A COPY OF THE DEMAND NOTICES DATED 27/06/2014 FOR THE ASSESSMENT YEARS 2008-09. EXT.P6B COPY OF THE DEMAND NOTICES DATED 27/06/2014 FOR THE ASSESSMENT YEARS 2009-10. EXT.P6C COPY OF THE DEMAND NOTICES DATED 27/06/2014 FOR THE ASSESSMENT YEARS 2010-11. EXT.P6D COPY OF THE DEMAND NOTICES DATED 27/06/2014 FOR THE ASSESSMENT YEARS 2011-12. RESPONDENT'S EXHIBITS:- NIL. //TRUE COPY// P.S. TO JUDGE rs. K.VINOD CHANDRAN, J. --------------------------------------- W.P.(C) No. 19356 of 2014 (T) ---------------------------------------- Dated this the 30th day of July, 2014 JUDGMENT The petitioner is aggrieved with the assessment orders produced as per Ext.P1 series for the assessment years 2007 - 2008, 2008 - 2009, 2009 - 2010, 2010 - 2011 and 2011 - 2012. The petitioner has filed appeals from the above assessment orders as is evidenced from Ext.P2 series of documents. Ext.P3 series, are the stay applications filed in the said appeals. The petitioner further challenges Ext.P5 series of orders, under Section 220(2) of the Income Tax Act, 1961. In the context of pendency of the appeals, the petitioner is aggrieved by the recovery proceedings initiated, as also the liability of interest raised as per Ext.P5 series of orders. 2.In the circumstances of appeals having been filed and stay applications said to be pending before the first appellate authority, it is only proper that the stay applications be considered in a time bound manner and W.P.(C) No. 19356 of 2014 (T) 2 the recovery against the petitioner be kept in abeyance till such consideration. There shall be a direction to the second respondent, to consider the stay applications filed in Ext.P2 series of appeals within a period of 'six weeks' from the date of receipt of certified copy of this judgment. 3.The recovery proceedings pursuant to Ext.P6 series of demand notices, shall be kept in abeyance for such period and thereafter shall depend upon the orders passed by the first appellate authority. However, no interference can be made of Ext.P5 series of orders since the interest liability is automatic, in so far as the provision under Section 220(2) of the Income Tax Act is concerned. The writ petition is disposed of. Sd/- K.VINOD CHANDRAN, JUDGE AMV/30/7/ "