P.C.SUNNY V. INCOME TAX OFFICER

WP(C)/40350/2022

AI Insights

The case involves P.C. Sunny, the petitioner, who contested an assessment order issued by the Income Tax Officer for the assessment year 2018-19. The petitioner, represented by his power of attorney holder, challenged the demand notice following the assessment order and filed an appeal, which was still pending. Concurrently, the petitioner was urged to remit the outstanding amount based on a revised memorandum from the CBDT, which stipulated that a stay on demand could only be granted upon payment of 20% of the disputed amount. The petitioner filed an application for a stay of the demand under Section 220(6) of the Income Tax Act, pending the appeal's outcome. The court, after hearing both parties, directed the Income Tax Officer to decide on the stay application within two months and suspended all recovery actions until then.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 750012 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 13-12-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: K J ABRAHAM NIKHIL JOHN
• Keywords: Appeal; Assessment Order; Demand notice; Income Tax; Stay Application
• Section: 220(6)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. TUESDAY, THE 13TH DAY OF DECEMBER 2022 / 22ND AGRAHAYANA, 1944 WP(C) NO. 40350 OF 2022 PETITIONER: P.C.SUNNY AGED 52 YEARS PANJIKARAN HOUSE, MUPLIYAM POST, THRISSUR DISTRICT - 680 312. REPRESENTED BY POWER OF ATTORNEY HOLDER, MR. V.P. PETER,S/O. POULOSE, S/O. POULOSE, AGED 59 YEARS, VAZHAKALAYIL HOUSE, MUPLIYAM P.O, THRISSUR-, PIN - 680312 BY ADVS. K.J.ABRAHAM NIKHIL JOHN RESPONDENTS: INCOME TAX OFFICER WARD INTERNATIONAL TAX, CENTRAL REVENUE BUILDING, I.S.PRESS ROAD, KOCHI, ERNAKULAM DISTRICT., PIN - 682018 OTHER PRESENT: ADV. JOSE JOSPEH (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13.12.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P (C) No.40350/2022 - J U D G M E N T The petitioner suffered Ext.P1 order of assessment for assessment year 2018-19 under the provisions of Income Tax Act, 1961. Exhibit P2 demand notice has been issued to the petitioner in respect of the demand in Ext.P1 order of assessment. The petitioner filed Ext.P3 appeal before the 2nd respondent and the appeal is stated to be pending. In the meanwhile through Ext.P4 letter dated 17-11-2022, the petitioner has been called upon to remit the outstanding amount. The petitioner has also been informed that as per the revised office memorandum issued by CBDT dated 31-07-2017, stay on demand can be granted only on payment of 20% of the disputed demand. The petitioner has filed Ext.P5 application before the 1st respondent for stay under the Section 220(6) of the Income Tax Act, pending consideration of Ext.P3 appeal by the appellate authority. 2. The learned counsel for the petitioner states that a direction may be issued to the 1st respondent to consider and pass orders on Ext.P5 after affording to the petitioner an opportunity of being heard. 3. The Standing Counsel appearing for the Income Tax Department has no objection in the direction being issued to the 1st respondent to consider Ext.P5. 4. Having heard the learned counsel for the petitioner and the learned Standing counsel for the respondent department, this writ petition will stand disposed of directing the 1st respondent to consider Ext.P5 application for stay filed under Section 220 (6) of the Income Tax Act within a period of two months from the date of receipt of a certified copy of this judgment. Till such time as orders are passed on Ext.P5, all proceedings for recovery of the amounts due under Ext.P1 order of assessment shall remain suspended. Sd/- GOPINATH P. JUDGE AMG W.P (C) No.40350/2022 - APPENDIX OF WP(C) 40350/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER DIN.ITBA/AST/5/143(3)/2019-20/1023545159(1) DATED 31.12.2019 FOR THE ASSESSMENT YEAR 2017-18 Exhibit P2 TRUE COPY OF THE DEMAND NOTICE DIN- ITBA/AST/S/156/2019-20/1023545222(1) DATED 31.12.2019 Exhibit P3 TRUE COPY OF THE APPEAL MEMORANDUM IN FORM NO. 35 DATED 30.01.2020 FOR THE ASSESSMENT YEAR 2017-18 Exhibit P4 TRUE COPY OF THE LETTER DIN.ITBA/ASK/F/73/2022- 23/1047483749(1) DATED 17.11.2022 Exhibit P5 TRUE COPY OF THE STAY APPLICATION WITH AFFIDAVIT DATED 03.12.2022 FILED BEFORE THE 1ST RESPONDENT "