NUCLEUS PREMIUM PROPERTIES PRIVATE LIMITED V. THE INCOME TAX OFFICER

WP(C)/5496/2020

AI Insights

The case involves Nucleus Premium Properties Private Limited, which filed a writ petition against the Income Tax Officer and the Commissioner of Income Tax (Appeals) concerning the delay in the appellate authority's decision on their delay condonation and stay petitions related to an assessment order under Section 143(3) of the Income Tax Act. The petitioner argued that the delay in processing these petitions allowed the assessing officer to proceed with tax recovery actions, potentially rendering the statutory appeal ineffective. The High Court of Kerala, presided by Justice S.V. Bhatti, found merit in the petitioner's arguments and issued directions to expedite the appellate process and temporarily halt any recovery actions.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 758401 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 26-02-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: HARISANKAR MENON; MEERA MENON
• Keywords: Assessment Order; Delay condonation; Income Tax; Stay Petition
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI WEDNESDAY, THE 26TH DAY OF FEBRUARY 2020 / 7TH PHALGUNA, 1941 WP(C).No.5496 OF 2020(J) PETITIONER/S: NUCLEUS PREMIUM PROPERTIES PRIVATE LIMITED, 3RD AND 4TH FLOOR VENTURA, NH 47, BYE-PASS, KOCHI-682 024, REPRESENTED BY ITS DIRECTOR, N.P. NISHAD. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER, CORPORATE WARD 2(5), OFFICE OF THE INCOME TAX DEPARTMENT, C.R.BUILDING, I.S.PRESS ROAD, KOCHI-682 018. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), PANAMPILLY NAGAR, ERNAKULAM, KOCHI-682 036. SC JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.5496 OF 2020 2 JUDGMENT Dated this the 26th day of February 2020 The petitioner filed appeals in Ext.P2 aggrieved by the orders of assessment in Ext.P1 made under Section 143(3) of the Income Tax Act. The petitioner has filed the appeals with a delay condonation petition of 20 days in Ext.P3 and Ext.P4 stay petition. The petitioner prays for appropriate direction to the appellate authority to consider and dispose of Exts.P3 and P4 expeditiously. 2. The case of petitioner is that either the mere filing of appeal or mere pendency of appeal does not amount to granting stay by the appellate authority. The delay in considering and disposing of Exts.P3 and P4 (stay petition) results in the assessing officer taking steps for recovering the tax amount which is under challenge in Ext.P2. The assessing officer, if is successful in his effort the statutory appeal would become either academic or ineffective. It is further contended by the petitioner that in the manner the law provides for protecting the interest of appellant pending appeal, the orders on delay petition and stay petition are passed expeditiously. WP(C).No.5496 OF 2020 3 Hence the writ petition. 3. Perused Exts. P1, P2, P3 and P4. Prima facie I am satisfied that a case is made out for issuing necessary directions to the 2nd respondent to dispose of the delay condonation petitions and stay petitions in Exts.P3 and P4 respectively. Having regard to the limited prayer and the grounds referred to above, this Court is satisfied that the writ petition can be disposed of by this judgment:- (a) The appellate authority/2nd respondent considers and disposes of Exts.P3 and P4 applications as early as possible, preferably within two months from the date of receipt of copy of this judgment. (b) The respondents are directed not to take coercive steps or recover the amount determined in the orders under appeal for ten weeks from today. Sd/- S.V.BHATTI JUDGE uu 27.02.2020 WP(C).No.5496 OF 2020 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE IST RESPONDENT FOR THE YEAR 2017-18 DATED 20.12.2019. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT 2017-18 DATED 11.2.2020. EXHIBIT P3 COPY OF DELAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 11.2.2020. EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 11.2.2020. "