Padmanabhan Viswanathan V. The Assistant Director of Income Tax Central Processing Centre and The Assistant Commissioner of Income Tax DCIT, Circle International Taxation and The Commissioner of Income Tax (Appeals) National Faceless Appeal Centre

WP(C)/33283/2023

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The case involves Padmanabhan Viswanathan, the petitioner, who contested a demand raised by the Income Tax Department following his claim for a foreign tax credit (FTC) for the assessment year 2021-22. Initially, the assessing authority rejected his FTC claim, leading to a demand of Rs.2,28,80,370. After filing a rectification application, which was also rejected, the demand increased to Rs.2,41,49,000. The petitioner filed an appeal with a significant delay, which he sought to condone. The court's decision focused on expediting the consideration of the condonation of delay and the subsequent stay application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 682962 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 12-10-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: DIVYA RAVINDRAN; ALAN DEV
• Keywords: Condonation of delay; Foreign Tax Credit; Rectification Order; Stay Application; Writ of Mandamus
• Section: 154; 143(1); 246

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH THURSDAY, THE 12TH DAY OF OCTOBER 2023 / 20TH ASWINA, 1945 WP(C) NO. 33283 OF 2023 PETITIONERS: PADMANABHAN VISWANATHAN AGED 44 YEARS, 39, HOMETOKS GOLDEN DEW VILLAS, VENNALA HIGH SCHOOL ROAD, COCHIN, PIN – 682028 BY ADVS. DIVYA RAVINDRAN ALAN PRIYADARSHI DEV RESPONDENTS: 1 THE ASSISTANT DIRECTOR OF INCOME TAX CENTRAL PROCESSING CENTRE, 1ST FLOOR, PRESTIGE ALPHA NO 48/1, HOSUR ROAD, UTTARAHALLI HOBLI, BENGALURU, KARNATAKA, PIN – 560100 2 THE ASSISTANT COMMISSIONER OF INCOME TAX DCIT, CIRCLE INTERNATIONAL TAXATION, AAYAKAR BHAVAN, 1ST FLOOR, KAWDIAR PO, TRIVANDRUM, PIN – 695003 3 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE (NFAC), NEW DELHI, PIN – 110001 BY ADV. SHRI. JOSE JOSEPH, SC, THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.10.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C).33283/2023 2 J U D G M E N T Dated this the 12th day of October, 2023 The present writ petition has been filed by the petitioner for a writ of mandamus commanding the 2nd respondent to refrain from recovering the demand pursuant to Exhibit P1 rectification order, pending disposal of the appeal and stay petition (Exhibits P3 and P4), before the 3rd respondent in respect of the assessment year 2021-22. 2. The petitioner filed return of his income for the assessment year 2021-22 on 31.3.2022 declaring total income of Rs.5,87,59,725/-. The petitioner claimed foreign tax credit of Rs.1,79,29,048/-. The assessing authority did not agree with the claim of the petitioner for FTC vide intimation dated 28.10.2022 under Section 143(1) of the Income Tax Act, 1961 and a demand of Rs.2,28,80,370/- was made. 3. Petitioner thereafter filed application under Section 154 of the Income Tax Act against the rejection of FTC claim. However, rectification application was rejected vide order dated 11.1.2023 and demand of Rs.2,41,49,000/- was raised from the petitioner. Petitioner has filed an appeal along with an application for condonation of delay. The appeal is filed under Section 246 of IT Act before the 3rd respondent. There is a delay of 234 days in filing the appeal. W.P(C).33283/2023 3 4. There is huge delay in filing the appeal. In view of the aforesaid, this Court directs the appellate authority to consider the application for condonation of delay expeditiously, preferably within a period of two months and if delay is condoned, the appellate authority should take up the stay application filed by the petitioner and dispose the same expeditiously. With the aforesaid direction, this writ petition stands disposed of. Sd/- Dinesh Kumar Singh, Judge sou. W.P(C).33283/2023 4 APPENDIX OF WP(C) 33283/2023 PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF RECTIFICATION ORDER DATED 11.01.2023 PASSED BY THE FIRST RESPONDENT EXHIBIT P2 TRUE COPY OF THE ACKNOWLEDGMENT OF THE RETRUN FILED FOR AY 2021-22 EXHIBIT P3 TRUE COPY OF FORM NO.35 APPEAL MEMO DATED 1.10.2023 EXHIBIT P4 TRUE COPY OF THE STAY PETITION DATED 1.10.2023 EXHIBIT P5 TRUE COPY OF THE LETTER ISSUED BY THE 2ND RESPONDENT DATED 18.09.2023 EXHIBIT P6 TRUE COPY OF THE REPLY FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 3.10.2023 "