Mathew George V. Commissioner of Income Tax (Appeals) and Assistant Director of Income Tax (Inv.)-II and Principal Commissioner of Income Tax (Central) and Central Board of Direct Taxes

WP(C)/22177/2022

AI Insights

The case involves Mathew George, the petitioner, who filed a writ petition against the orders passed by the income tax authorities under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The petitioner challenged the jurisdiction of the third respondent, who directed him to remit 20% of the demanded amount, while statutory appeals and stay petitions were pending before the first respondent. The petitioner sought a directive for the first respondent to consider and dispose of the stay petitions expeditiously. The court, considering the ongoing proceedings and the jurisdictional challenge, directed the first respondent to address the stay petitions promptly and deferred further coercive actions until a decision was made.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 798082 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 22-08-2023
• Assessment Year: misc
• Laws Referred To: Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOESEPH
• Assessee Lawyers: ROSHIN JOSEPH
• Keywords: Black money; Jurisdiction; Stay Petition; Undisclosed Foreign Income; Imposition of Tax
• Section: 43; 41; 10(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE C.S.DIAS TUESDAY, THE 22ND DAY OF AUGUST 2023 / 31ST SRAVANA, 1945 WP(C) NO. 22177 OF 2022 PETITIONER: MATHEW GEORGE, AGED 67 YEARS, S/O K. G. GEORGE, 3A, LINK HORIZON, MARINE DRIVE, ERNAKULAM, HIGH COURT P . O., ERNAKULAM-682031. BY ADV ROSHIN IPE JOSEPH RESPONDENTS: 1 COMMISSIONER OF INCOME TAX (APPEALS) - 3, POORNIMA BUILDINGS, NEAR MANORAMA JUNCTION, PANAMPILLY NAGAR, ERNAKULAM, KOCHI-682036. 2 ASSISTANT DIRECTOR OF INCOME TAX (INV .)-II, 4TH FLOOR, AARYA BHANGI PINNACLE, ERNAKULAM, S. A. ROAD, KOCHI-682020. 3 PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL), KOCHI, KANDAMKULATHI TOWERS, M. G. ROAD, ERNAKULAM P . O., KOCHI – 682 011. (Impleaded as additional third respondent vide order dated 9.8.2023 in IA.No.1/2022. 4 CENTRAL BOARD OF DIRECT TAXES, REPRESENTED BY ITS CHAIRMAN, NORTH BLOCK, SECRETARIAT BUILDING, NEW DELHI – 110 001. (Impleaded as additional fourth respondent vide order dated 9.8.2023 in IA.No.1/2023. BY ADVS.JOSE JOSEPH, SC, INCOME TAX DEPARTMENT. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.08.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 22177 OF 2022 :: 2 :: JUDGMENT Dated this the 22nd day of August 2023 The writ petition is filed, inter alia, to direct the first respondent to consider and dispose of Exts.P7 to P9 stay petitions filed by the petitioner. 2. The petitioner’s case is that, aggrieved by Exts.P1, P3 and P5 orders passed by the second respondent under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, the petitioner has preferred statutory appeals before the first respondent. Along with the appeals, the petitioner has also filed Exts.P7, P8 and P9 stay petitions. During the pendency of the stay petitions, the third respondent has passed Ext.P10 order directing the petitioner to remit 20% of the demanded amount. The petitioner submits that the third respondent has no jurisdiction to pass the said order. Moreover, as the statutory appeals WP(C) NO. 22177 OF 2022 :: 3 :: and the stay petitions are pending consideration before the first respondent, notwithstanding Ext.P10 order, the first respondent may be directed to consider and dispose of Exts.P7 to P9, immediately. Hence, the writ petition. 3. Heard; Sri.Roshin Ipe Joseph, the learned counsel for the petitioner and Sri.Jose Joseph, the learned Standing Counsel appearing for the respondents. 4. Having considered the pleadings and materials on record, and taking note of the fact that the Exts.P7 to P9 stay petitions are pending consideration before the first respondent, in exercise of the extra ordinary powers of this Court under Article 226 of the Constitution of India, I deem it appropriate to direct the first respondent to consider and dispose of the same immediately. WP(C) NO. 22177 OF 2022 :: 4 :: Resultantly, I order the writ petition as follows: (i) The first respondent is directed to consider and dispose of Exts.P7 to P9 stay petitions, in accordance with law and as expeditiously as possible, at any rate, within a period of three months from the date of receipt of a certified copy of the judgment, untrammelled by any observation made in Ext.P10 letter. (ii) If the first respondent proposes to pass any conditional interim order of stay, he shall state reasons for the same. (iii) Until such time orders are passed on Exts.P7 to P9, all further coercive proceedings as against the petitioner shall stand deferred. Sd/- C.S.DIAS JUDGE jes WP(C) NO. 22177 OF 2022 :: 5 :: APPENDIX PETITIONER EXHIBITS: Exhibit P1 TRUE COPY OF THE ORDER DATED 27-4-2020 UNDER S.10(3) OF THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015. Exhibit P2 TRUE COPY OF THE DEMAND NOTICE DATED 27-4-2020 ISSUED TO THE PETITIONER IN FORM I UNDER RULE 5 OF THE BLACK MONEY AND IMPOSITION OF TAX RULES, 2015, DEMANDING FROM THE PETITIONER A SUM OF RS.1,34,45,129/- (RUPEES ONE CRORE THIRTY FOUR LAKHS FORTY FIVE THOUSAND ONE HUNDRED AND TWENTY NINE ONLY). Exhibit P3 TRUE COPY OF THE ORDER DATED 16-3-2022 PASSED BY SECOND RESPONDENT UNDER S.41 OF THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015. Exhibit P4 TRUE COPY OF THE DEMAND NOTICE DATED 16-3-2022 ISSUED TO THE PETITIONER IN FORM I UNDER RULE 5 OF THE BLACK MONEY AND IMPOSITION OF TAX RULES, 2015, DEMANDING A SUM OF RS.4,03,35,387/- (RUPEES FOUR CRORES THREE LAKHS THIRTY FIVE THOUSAND THREE HUNDRED AND EIGHTY SEVEN ONLY) FROM THE PETITIONER. Exhibit P5 TRUE COPY OF THE ORDER DATED 16-3-2022 PASSED BY SECOND RESPONDENT UNDER S.43 OF THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015. Exhibit P6 TRUE COPY OF THE DEMAND NOTICE DATED 16-3-2022 ISSUED TO THE PETITIONER IN FORM I UNDER RULE 5 OF THE BLACK MONEY AND IMPOSITION OF TAX RULES, 2015, DEMANDING A SUM OF RS.10,00,000/- (RUPEES TEN LAKHS ONLY) FROM THE PETITIONER. Exhibit P7 TRUE COPY OF THE APPLICATION FILED BY PETITIONER BEFORE FIRST RESPONDENT PRAYING FOR A STAY OF EXT.P2. Exhibit P8 TRUE COPY OF THE APPLICATION FILED BY PETITIONER BEFORE FIRST RESPONDENT PRAYING FOR A STAY OF EXT.P4. Exhibit P9 TRUE COPY OF THE APPLICATION FILED BY PETITIONER BEFORE FIRST RESPONDENT PRAYING FOR A STAY OF EXT.P6. WP(C) NO. 22177 OF 2022 :: 6 :: Exhibit P10 TRUE COPY OF THE LETTER DATED 17-6-2022 ISSUED BY FIRST RESPONDENT TO THE PETITIONER. Exhibit P11 TRUE COPY OF CBDT OM NO. 404/72/93-ITCC (FTS:284146) DATED 31-7-2017, WHICH IS REFERRED TO IN EXT.P10. Exhibit P12 TRUE COPY OF O.M. NO.404/72/93-ITCC DATED 29-2-2016 ISSUED BY CBDT. Exhibit P13 TRUE COPY OF EXTRACT OF GUIDELINES ISSUED BY CBDT DATED 21-3-1996 PARTIALLY MODIFYING INSTRUCTION NO.1914 DATED 2-12-1993. Exhibit P14 TRUE COPY OF EXTRACT OF INSTRUCTION NO.1914 DATED 21-3-1993 ISSUED BY CBDT. "