SHAJI AYYAPPAN, V. THE INCOME TAX OFFICER,

WP(C)/27623/2024

AI Insights

The case involves Shaji Ayyappan, the petitioner, who contested an assessment order for the year 2015-16 under the Income Tax Act, 1961. After the initial appeal was dismissed, the petitioner filed a second appeal with the Income Tax Appellate Tribunal, which is still pending. Concerned about potential recovery proceedings during the pendency of the appeal, the petitioner sought a stay on these proceedings. The High Court of Kerala, after hearing both parties, decided to suspend the recovery proceedings until the Tribunal addresses the delay and stay petitions.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 766068 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 05-08-2024
• Assessment Year: misc
• Other Referred Cases: WPC No. 18091/2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: K KRISHNA MENON
• Keywords: Appeal; Assessment Order; Condonation of delay; Income Tax; Recovery proceedings; Stay Petition
• Section: 254(2A)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. MONDAY, THE 5TH DAY OF AUGUST 2024 / 14TH SRAVANA, 1946 WP(C) NO. 27623 OF 2024 PETITIONER/S: SHAJI AYYAPPAN,AGED 52 YEARS VILLA NO.2, MISTIC BELLS, NEAR KANIYAMPUZHA BRIDGE, EROOR P.O.,ERNAKULAM, PIN - 682306 BY ADVS. K.KRISHNA ACHYUTH MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER, INCOME TAX DEPARTMENT, CORPORATE WARD-2 (2), I.S. PRESS ROAD, ERNAKULAM, KOCHI, PIN - 682018 2 NATIONAL FACELESS APPEAL CENTRE, DELHI, REPRESENTED BY THE COMMISSIONER OF INCOME TAX (APPEALS), PIN - 110001 3 INCOME TAX APPELLATE TRIBUNAL, 1ST FLOOR, BLOCK C-I & C-II, KENDRIYA BHAVAN, KAKKANAD, KOCHI, REPRESENTED BY ITS SECRETARY, PIN - 682037 SRI. JOSE JOSEPH, SC, IT DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.08.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 27623 OF 2024 2 JUDGMENT Petitioner suffered an order of assessment for the assessment year 2015-16 under the provisions of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). The petitioner filed an appeal against Ext.P1 order of assessment, which was dismissed by Ext.P2 order. The petitioner is now before the Income Tax Appellate Tribunal by filing a Second Appeal, which is stated to be pending consideration of the Income Tax Appellate Tribunal along with a stay petition (Ext.P5) and an application for condonation of delay (Ext.P4). The petitioner apprehends that recovery proceedings may be initiated to recover the amounts assessed as due, pending consideration of the matter by the Income Tax Appellate Tribunal. 2. Learned counsel appearing for the petitioner submits that, pending consideration of the stay petition and the application for condonation of delay, the recovery proceedings may be kept in abeyance. WP(C) NO. 27623 OF 2024 3 3. Heard the learned Senior Standing Counsel appearing for the Department also. 4. Having heard the learned counsel appearing for the petitioner and the learned Senior Standing Counsel appearing for the Income Tax Department and considering the limited nature of relief now sought for by the petitioner, this writ petition will stand disposed of, directing the Income Tax Appellate Tribunal, Kochi Bench (the 3rd respondent herein) to consider and pass orders on the delay petition and also on the stay petition filed in Ext.P3 appeal, after affording an opportunity of hearing to the petitioner, within a period of three months from the date of receipt of a certified copy of this judgment. Till such time as orders are passed as directed above, any proceeding for recovery of any amount assessed as due from the petitioner for the assessment year 2015-16 shall remain suspended. It is made clear that the Tribunal needs to pass orders on the application for stay on merits only if it decides to condone the delay in filing the appeal. It is also made clear that, it WP(C) NO. 27623 OF 2024 4 will be open to the Income Tax Appellate Tribunal to consider the issue of maintainability of the stay petition on account of the failure to make a pre-deposit as contemplated by the Proviso to Sub Section (2A) of Section 254 of the Act. Sd/- GOPINATH P. JUDGE ajt WP(C) NO. 27623 OF 2024 5 APPENDIX OF WP(C) 27623/2024 PETITIONER EXHIBITS Exhibit P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2015-16 DTD. 22-12- 2017 Exhibit P2 COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT DTD. 11-08-2023 Exhibit P3 COPY OF APPEAL FIELD BY THE PETITIOENR BEFORE THE 3RD RESPONDENT DTD. 13-07-2024 Exhibit P4 COPY OF DELAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DTD. 18- 07-2024 Exhibit P5 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DTD. 18-07-2024 Exhibit P6 COPY OF JUDGMENT IN WPC NO. 18091/2022 OF THIS HON'BLE COURT DTD. 06-06-2022 "