Mohammed Musthafa C. K. V. Income Tax Officer, Ward 2(3) and Commissioner of Income Tax (Appeals), Aayakar Bhavan, Mananchira, Kozhikode and Commissioner of Income Tax (Appeals), National Faceless Centre, New Delhi and Tax Recovery Officer, Aayakar Bhavan, Mananchira, Kozhikode

WP(C)/40554/2023

AI Insights

The writ petition filed by Mohammed Musthafa C. K. sought to expedite the appeal process against an income tax assessment order and to stay further proceedings until the appeal was resolved. The petitioner had previously approached the court in 2018, resulting in a stay of tax demand contingent upon the deposit of 20% of the assessed demand, which the petitioner failed to comply with. Consequently, the court found that the stay was no longer in effect, allowing the tax authorities to proceed with recovery. The court, considering the prolonged pendency of the appeal, directed the third respondent to expedite the decision on the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 814472 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 06-12-2023
• Assessment Year: misc
• Other Referred Cases: W.P.(C) No. 3252 of 2018
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Assessee Lawyers: P RAGHUNATHAN; PREMJIT NAGENDRAN; RISHAL
• Keywords: Appeal; Assessment Order; Income Tax; Stay Petition; Writ of Mandamus

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 6TH DAY OF DECEMBER 2023 / 15TH AGRAHAYANA, 1945 WP(C) NO. 40554 OF 2023 PETITIONER: MOHAMMED MUSTHAFA C. K., AGED 50 YEARS, PARAKKOT PATTAYI HOUSE, FEROKE P. O.,KOZHIKODE, PIN – 673631. BY ADVS. SRI. P. RAGHUNATHAN SRI. PREMJIT NAGENDRAN SRI. RISHAL K. RESPONDENTS: 1 INCOME TAX OFFICER, WARD 2(3), AAYAKAR BHAVAN, MANANCHIRA, KOZHIKODE, PIN – 673001. 2 COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN,MANANCHIRA, KOZHIKODE, PIN – 673001. 3 COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS CENTRE, NEW DELHI, PIN – 110001. 4 TAX RECOVERY OFFICER, AAYAKAR BHAVAN, MANANCHIRA, KOZHIKODE, PIN – 673001. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 40554 OF 2023 2 DINESH KUMAR SINGH, J. -------------------------- WP(C) No.40554 of 2023 ------------------------- Dated this the 6th day of December, 2023 JUDGMENT 1. The present writ petition has been filed for the following reliefs; It is therefore prayed that this Hon’ble Court may be pleased call for the records leading to the issue of Ext. P-2 assessment order as well as Ext. P-3 appeal, peruse the same, hear arguments on behalf of the petitioner and: A: ISSUE a Writ of Mandamus or any other appropriate Writ or direction to the Third Respondent directing his to dispose of Ext. P-3 appeal expeditiously: B: ISSUE an appropriate writ or direction to the Fourth Respondent directing him to keep in abeyance all further proceedings pursuant to Ext. P-8 notice till such time Ext. P-3 appeal is disposed of by Third Respondent: C: Pass such other orders that the Petitioner may pray for and this Hon’ble Court may deem fit to grant. 2. Earlier, the writ petitioner has approached this Court by filing W.P.(C) No. 3252 of 2018. The Co-ordinate Bench of this Court vide the Judgment and Order dated 19.03.2018 disposed of the said writ petition with direction to the 2nd respondent (3rd respondent herein) to pass orders on the stay petition claimed to have been filed by the WP(C) NO. 40554 OF 2023 3 petitioner. This Court also stayed the demand of tax covered by the assessment order till disposal of the stay application. Further direction was given that the petitioner’s bank accounts had been ceased, the petitioner should be permitted to operate the account until such time the stay application is disposed of. 3. In pursuance to the direction issued by this Court, the 2nd respondent had decided the stay petition vide the order dated 17.01.2019 directing the petitioner to deposit 20% of the demand as per the assessment order in two equal installments to be paid by the last date of January 2019 and February 2019. The balance demand is stayed for a period of six months. 4. It appears that the petitioner has not paid 20% of the aggregate demand in two equal installments as directed by the 2nd respondent while disposing of the stay application. The stay order was granted by the 2nd respondent on condition of payment of 20% of the demand in two installments. The petitioner has not complied with the condition of stay, there is no stay and the Authority are free to recover the amount as there is no interim order operating in favour of the petitioner. 5. Be that as it may, according to the petitioner, the appeal filed by the petitioner against the assessment order has remained pending WP(C) NO. 40554 OF 2023 4 since 2018. considering the long pendency of the appeal against the assessment order, it would be appropriate to dispose of this writ petition with direction to the 3rd respondent to decide the appeal expeditiously preferably within a period of two months in accordance with the law. Sd/- DINESH KUMAR SINGH JUDGE Svn WP(C) NO. 40554 OF 2023 5 APPENDIX OF WP(C) 40554/2023 PETITIONER’S EXHIBITS EXHIBIT P-1 PHOTOCOPY OF CERTIFICATE ISSUED BY VILLAGE OFFICER, RAMANATTUKARA EXHIBIT P-2 PHOTOCOPY OF ASSESSMENT ORDER FOR 2014.15 DT 11.08.2016 EXHIBIT P-3 PHOTOCOPY OF APPEAL FILED BEFORE SECOND RESPONDENT AGAINST EXT. P2 EXHIBIT P-4 PHOTOCOPY OF THE WPC ORDER IN WPC NO. 3252/2018 EXHIBIT P-5 PHOTOCOPY OF THE STAY PETITION ORDER DTD 17.01.2019 EXHIBIT P-6 PHOTOCOPY OF THE NOTICE FOR HEARING DTD 18.03.2021 EXHIBIT P-7 PHOTOCOPY OF THE RESPONSE TO EXT. P6 NOTICE DTD 18.03.2021 EXHIBIT P-8 PHOTOCOPY OF THE NOTICE ISSUED BY THE 3RD RESPONDENT DTD 22.09.2023 "