M.SHIJU V. THE DEPUTY COMMISSIONER

WP(C)/19357/2014

AI Insights

The petitioner, M. Shiju, challenged the assessment orders and subsequent recovery proceedings initiated by the Income Tax Department for several assessment years. The petitioner had filed appeals against these orders, which were pending before the appellate authority. Additionally, stay applications were filed to halt the recovery proceedings during the pendency of the appeals. The main legal contention revolved around the procedural handling of the stay applications and the automatic imposition of interest under Section 220(2) of the Income Tax Act, 1961. The court's decision focused on ensuring a timely review of the stay applications while upholding the automatic interest liability as per the statutory provision.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 693955 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 30-07-2014
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: M R RAJESH; E S SANDHYA
• Keywords: Appeal; Assessment Order; Income Tax; 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 SRAVANA, 1936 WP(C).No. 19357 of 2014 (T) --------------------------------------- PETITIONER(S): ---------------------- M.SHIJU, ANZARI MANZIL, NAGAROOR ROAD, KALLAMABALAM, KALLAMABALAM 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-I, 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-I, 4TH FLOOR, ANNEXE, AAYKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM-695 003. BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30-07-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: PJ WP(C).No. 19357 of 2014 (T) --------------------------------------- APPENDIX PETITIONER(S)' EXHIBITS ------------------------------------- EXT.P1. TRUE COPY OF THE ASSESSMENT ORDER DATED 31/3/2014 FOR THE ASSESSMENT YEAR 2008 -2009. EXT.P1(A). TRUE COPY OF THE ASSESSMENT ORDER DATED 31/3/2014 FOR THE ASSESSMENT YEAR 2009-2010. EXT.P1(B). TRUE COPY OF THE ASSESSMENT ORDER DATED 31/3/2014 FOR THE ASSESSMENT YEAR 2011-2012 EXT.P1(C). TRUE COPY OF THE ASSESSMENT ORDER DATED 31/3/2014 FOR THE ASSESSMENT YEAR 2012-2013 EXT.P2. TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 24/4/2014 FOR THE ASSESSMENT YEAR 2008-09 SUBMITTED BY THE SECOND RESPONDENT EXT.P2(A). TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 24/4/2014 FOR THE ASSESSMENT YEAR 2009-10 SUBMITTED BY THE SECOND RESPONDENT EXT.P2(B). TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 24/4/2014 FOR THE ASSESSMENT YEAR 2011-12 SUBMITTED BY THE SECOND RESPONDENT EXT.P2(C). TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 24/4/2014 FOR THE ASSESSMENT YEAR 2012-13 SUBMITTED BY THE SECOND RESPONDENT EXT.P3. TRUE COPY OF THE STAY PETITION DATED 2/6/2014 FOR THE ASSESSMENT YEAR 2008-2009. EXT.P3(A). TRUE COPY OF THE STAY PETITION DATED 2/6/2014 FOR THE ASSESSMENT YEAR 2009-2010 EXT.P3(B). TRUE COPY OF THE STAY PETITION DATED 2/6/2014 FOR THE ASSESSMENT YEAR 2011-2012 EXT.P3(C). TRUE COPY OF THE STAY PETITION DATED 2/6/2014 FOR THE ASSESSMENT YEAR 2012- 2013 EXT.P4. TRUE COPY OF THE ORDER NO.AAUPHT948N/CRL. CIR-1/TVM/2013-14 DATED 15/5/2014 U/S.220 ISSUED BY THE IST RESPONDENT EXT.P5. TRUE COPY OF THE ORDER ISSUED BY THE 3RD RESPONDENT U/S.220(2) OF THE INCOME TAX ACT, DATED 16/6/2014 FOR THE ASSESSMENT YEARS 2008-2009. PJ ....2/- ..2.. WP(C).No. 19357 of 2014 (T) --------------------------------------- EXT.P5(A). TRUE COPY OF THE ORDER ISSUED BY THE 3RD RESPONDENT U/S.220(2) OF THE INCOME TAX ACT, DATED 16/6/2014 FOR THE ASSESSMENT YEARS 2009-2010 EXT.P5(B). TRUE COPY OF THE ORDER ISSUED BY THE 3RD RESPONDENT U/S.220(2) OF THE INCOME TAX ACT, DATED 16/6/2014 FOR THE ASSESSMENT YEARS 2011-12 EXT.P5(C). TRUE COPY OF THE ORDER ISSUED BY THE 3RD RESPONDENT U/S.220(2) OF THE INCOME TAX ACT, DATED 16/6/2014 FOR THE ASSESSMENT YEARS 2012-2013 EXT.P6. TRUE COPY OF THE DEMAND NOTICES DATED 27/6/2014 FOR THE ASSESSMENT YEARS 2008-2009. EXT.P6(A). TRUE COPY OF THE DEMAND NOTICES DATED 27/6/2014 FOR THE ASSESSMENT YEARS 2009-2010 EXT.P6(B). TRUE COPY OF THE DEMAND NOTICES DATED 27/6/2014 FOR THE ASSESSMENT YEARS 2011-2012 EXT.P6(C). TRUE COPY OF THE DEMAND NOTICES DATED 27/6/2014 FOR THE ASSESSMENT YEARS 2013-2014 RESPONDENT(S)' EXHIBITS --------------------------------------- NIL. / TRUE COPY / P.S. TO JUDGE PJ K.VINOD CHANDRAN, J. --------------------------------------- W.P.(C) No. 19357 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 2008 - 2009, 2009 - 2010, 2011 - 2012 and 2012 - 2013. 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. 19357 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 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/ "