MORNING STAR MEDICAL CENTRE, ADIMALY V. THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX

WP(C)/5808/2022

AI Insights

The case involves the Morning Star Medical Centre, which challenged an order of assessment (Ext.P1) issued by the Income Tax authorities, denying them exemption under Section 11 of the Income Tax Act, 1961 for the assessment year 2018-2019. The petitioner had previously been granted exemption but faced a denial for the specified year, leading to an appeal at the National Faceless Appeal Centre (Ext.P2). During the pendency of the appeal, the petitioner was threatened with recovery proceedings, prompting the need for a stay petition. The court had to decide on providing the petitioner an opportunity to upload a stay petition, which was not available due to the commencement of the National Faceless Appeal Scheme.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 686837 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 22-02-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: S ASGI R 6; CHRISTOPHER ABRAHAM
• Assessee Lawyers: JOSEPH MARKOSE; V ABRAHAM MARKOS; ABRAHAM MARKOS; ISAAC ALEXANDER; JOSEPH SHARAD; SHARAD KODANTHARA
• Keywords: Assessment Order; Income tax exemption; National Faceless Appeal Scheme; Stay Petition
• Section: 11

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS TUESDAY, THE 22ND DAY OF FEBRUARY 2022 / 3RD PHALGUNA, 1943 WP(C) NO. 5808 OF 2022 PETITIONER: MORNING STAR MEDICAL CENTRE, ADIMALY NAZARETH MEDICAL SOCIETY, NAZARETH HILL, ADIMALY, IDUKKI – 685 561, REPRESENTED BY ITS ADMINISTRATOR, REV. SR. LINCY CSN. BY ADVS. JOSEPH MARKOSE (SR.) V.ABRAHAM MARKOS ABRAHAM JOSEPH MARKOS ISAAC THOMAS ALEXANDER JOSEPH MARKOS SHARAD JOSEPH KODANTHARA RESPONDENTS: 1 THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, NEW DELHI - 110 001. 2 THE ASSISTANT COMMISSIONER OF INCOME TAX EXEMPTION CIRCLE, COCHIN - 682 018. 3 COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, NEW DELHI - 110001. 4 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, KOCHI - 682 018. 5 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX NATIONAL E-ASSESSMENT CENTRE, NEW DELHI - 110 001. 6 UNION OF INDIA MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NORTH BLOCK, NEW DELHI - 110001, REPRESENTED BY ITS SECRETARY. SRI. S. MANU-ASGI-R6 AND ADV.CHRISTOPHER ABRAHAM -SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.02.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 5808 OF 2022 2 BECHU KURIAN THOMAS, J …......….................................. W.P.(C) No.5808 of 2022 ….................................. Dated this the 22nd day of February, 2022 JUDGMENT Though the writ petition has been preferred challenging Ext.P1 order of assessment issued by the 1st respondent; during the course of arguments, the learned counsel for the petitioner confined his submissions to an opportunity for preferring a stay petition before the appellate authority. 2. Until the assessment year 2018-2019, petitioner was granted exemption under Section 11 of the Income Tax Act, 1961. However, for the assessment year 2018-2019, 1st respondent denied the exemption and issued an order of assessment as per Ext.P1. Challenging the said order, an appeal has been preferred before the National Faceless Appeal Centre as evident from Ext.P2. Since there was no threat WP(C) NO. 5808 OF 2022 3 of recovery proceedings against the petitioner, at the time when the appeal was filed, petitioner had not sought for a stay. 3. The grievance of the petitioner now brought to the notice of this Court is that, during the pendency of the appeal, respondents are proposing to initiate recovery proceedings and the same will cause great prejudice to the petitioner, unless the proceedings pending before the appellate authority are either completed in a time bound manner or an opportunity for preferring a stay petition before the appellate authority is obtained. As far as the latter is concerned, there is no opportunity for the petitioner to upload the stay petition after the commencement of the National Faceless Appeal Scheme. 4. In similar matters this Court had, taking note of the prejudice being caused to the assessees, have directed the National Faceless Appeal Centre to WP(C) NO. 5808 OF 2022 4 provide a link to the assessees to enable them to upload stay petitions in pending appeals. 5. Having heard the learned counsel for the petitioner as well as the learned Standing Counsel for the respondents, this Court is of the opinion that petitioner should also be given a similar relief. 6. Accordingly there will be a direction to respondents 3 to 5 to provide a link, to the petitioner to upload an application for stay, within a period of four weeks from the date of receipt of a copy of this judgment. Once a link is provided to the petitioner, the stay application as sought for must be uploaded within two weeks thereafter. 7. If such directions are complied with, the Competent Appellate Authority shall consider and dispose of the stay application, as expeditiously as possible, at any rate within a period of six weeks from the date of uploading of the application for stay. WP(C) NO. 5808 OF 2022 5 8. Despite the uploading of stay application, the appellate authority will be at liberty to consider and pass appropriate orders on the appeal itself. Needless to mention that till the application for stay is considered as directed above, all coercive proceedings initiated pursuant to Ext.P1 shall be kept in abeyance. The writ petition is disposed of. Sd/- BECHU KURIAN THOMAS JUDGE AMV/22/02//2022 WP(C) NO. 5808 OF 2022 6 APPENDIX OF WP(C) 5808/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 22.03.2021 PASSED BY THE 1ST RESPONDENT. Exhibit P2 TRUE COPY OF THE APPEAL MEMORANDUM DATED 08.04.2021. Exhibit P3 TRUE COPY OF THE COMMUNICATION / NOTICE DATED 11.01.2022 ISSUED BY THE 2ND RESPONDENT. Exhibit P4 TRUE COPY OF THE APPLICATION DATED 18.02.2022 FILED BEFORE THE 4TH RESPONDENT ALONG WITH STAY PETITION TO BE FORWARDED TO THE 3RD RESPONDENT. Exhibit P5 TRUE COPY OF THE SAID JUDGMENT DATED 01.02.2022 IN WP(C) NO.3225 OF 2022. Exhibit P6 TRUE COPY OF THE FACELESS APPEAL SCHEME, 2020 ISSUED BY NOTIFICATION DATED 25.09.2020. Exhibit P7 TRUE COPY OF THE FACELESS APPEAL SCHEME, 2021 ISSUED BY NOTIFICATION DATED 28.12.2021. RESPONDENTS EXHIBITS : NIL TRUE COPY "