MOLLEY JAYAPRAKASH V. THE INCOME TAX OFFICER

WP(C)/314/2023

AI Insights

The case involves Molley Jayaprakash, the petitioner, who faced a penalty under the Income Tax Act, 1961 for the assessment year 2017-2018. The petitioner had already filed an appeal against this penalty, which was pending at the National Faceless Appeal Centre. However, the petitioner had not filed a stay petition regarding the penalty order, leading to concerns about immediate recovery actions by the tax authorities. The court's decision provides a procedural safeguard, allowing the petitioner to file a stay petition to halt any recovery actions until the appeal is resolved.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 749831 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 06-01-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: ANIL NAIR; TELMA EDATHARA; VINEETA KRISHNAN; P K BIJU; ANJANA A
• Keywords: Faceless Appeal; Income Tax; Penalty order; Stay Petition
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 6TH DAY OF JANUARY 2023 / 16TH POUSHA, 1944 WP(C) NO. 314 OF 2023 PETITIONER: MOLLEY JAYAPRAKASH AGED 63 YEARS TC 3/746, HOUSE NO.1, KIRAN GARDEN KAIRALI NAGAR KD ROAD, MUTTADA P.O TRIVANDRUM, KERALA, PIN - 695025 BY ADVS. ANIL D. NAIR TELMA RAJU EDATHARA VINEETA KRISHNAN P.K.BIJU ANJANA A. RESPONDENTS: 1 THE INCOME TAX OFFICER OFFICE OF THE INCOME TAX OFFICER WARD -1 (2), THIRUVANANTHAPURAM, PIN - 695003 2 ADDITIONAL/JOINT/DEPUTY /ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE NEW DELHI, PIN - 110001 3 COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, NEW DELHI, PIN - 110001 OTHER PRESENT: ADV. CHRISTOPHER ABRAHAM (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P. (C) No. 314 of 2023 ..2.. JUDGMENT Dated this the 6th day of January, 2023 The petitioner suffered Ext. P4 order of penalty under the provisions of the Income Tax Act, 1961 for the assessment year 2017 – 2018. The petitioner had preferred Ext.P5 appeal before the National Faceless Appeal Centre and the said appeal is pending. The petitioner has however not filed any stay petition in the appeal. The petitioner apprehends that the recovery steps will be taken to recover amounts due under Ext.P4 order of penalty pending consideration of the appeal. 2. The learned counsel appearing for the respondent department points out that the petitioner has not preferred any stay petition and if the petitioner prefers a stay petition, any steps for recovery of amounts due under Ext.P4 order of penalty shall be kept in abeyance, till orders are passed on the stay petition. 3. Having regard to the submissions made, this Writ Petition will stand disposed of directing that if the petitioner files W.P. (C) No. 314 of 2023 ..3.. a stay petition in the pending appeal (Ext.P5) before the National Faceless Appeal Centre, any demand pursuant to Ext.P4 order imposing penalty shall be kept in abeyance, till orders are passed on such stay petition. This benefit shall be available only if the stay petition is filed within a period of two weeks from today. If the petitioner faces any difficulty in uploading a stay petition in the pending appeal, it will be open to the petitioner to approach the jurisdictional assessing officer, who will ensure that the stay petition is forwarded to the National Faceless Appeal Centre for consideration. The Writ Petition is disposed of as above. Sd/- GOPINATH P. JUDGE RMV W.P. (C) No. 314 of 2023 ..4.. APPENDIX OF WP(C) 314/2023 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 26.12.2019 ISSUED BY THE 1ST RESPONDENT. Exhibit P2 TRUE COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT AGAINST THE ASSESSMENT ORDER. Exhibit P3 TRUE COPY OF CHALAN DATED 19.02.2020 EVIDENCING PAYMENT OF TAX Exhibit P4 TRUE COPY OF THE PENALTY ORDER DATED 16.03.2022 ISSUED BY THE 2ND RESPONDENT Exhibit P5 TRUE COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT AGAINST PENALTY ORDER DATED 16.3.2022. RESPONDENTS' EXHIBITS:NIL TRUE COPY P.A.TO JUDGE "