THOMAS MUTHOOT V. THE ASSISTANT COMMISSIONER OF INCOME TAX

WP(C)/8681/2012

AI Insights

The case involves Shri. Thomas Muthoot, the petitioner, who challenged the recovery proceedings initiated by the Income Tax Department against him for the assessment years 2005-06, 2006-07, and 2007-08. The petitioner had filed appeals and stay petitions against the assessment orders, which were still pending before the Commissioner of Income Tax (Appeals). Despite the pending status, recovery notices were issued, prompting the petitioner to file writ petitions. The court considered the petitions and decided to stay the recovery proceedings, directing the Appellate authority to expedite the decision on the stay petitions.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 761392 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 04-04-2012
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: T M SREEDHARAN; NISHA JOHN; V P NARAYANAN; BOBY SEKHAR
• Keywords: Appeal; Assessment Order; Income Tax; Recovery proceedings; Stay Petition
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE ANTONY DOMINIC WEDNESDAY, THE 4TH DAY OF APRIL 2012/15TH CHAITHRA 1934 WP(C).No. 8681 of 2012 (I) -------------------------- PETITIONER : -------------------- SHRI. THOMAS MUTHOOT, MUTHOOT HOUSE, KOZHENCHERRY, PATHANAMTHITTA DISTRICT, PIN - 689 641. BY ADVS.SRI.T.M.SREEDHARAN (SR.) SMT.NISHA JOHN SRI.V.P.NARAYANAN SMT.BOBY M.SEKHAR RESPONDENT(S): -------------------------- 1. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE - 1, ENNIKKATTIL ESTATE, NEAR KSRTC BUS STATION, THIRUVALLA - 689 645. 2. THE COMMISSIONER OF INCOME TAX (APPEALS) - 1 AYAKKAR BHAVAN, KAWDIAR, THIRUVANANTHAPURAM - 695 003. R1 & R2 BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04-04-2012, ALONG WITH WP(C) NO. 8682/2012 & 8690/2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Mn ...2/- WP(C).No. 8681 of 2012 (I) APPENDIX PETITIONER'S EXHIBITS : EXT.P1 : COPY OF ASSESSMENT ORDER AND DEMAND NOTICE DATED 27.12.2011 FOR THE ASSESSMENT YEAR 2005-06 PASSED BY THE FIRST RESPONDENT. EXT.P1(a) : COPY OF -D0- FOR THE ASSESSMENT YEAR 2006-07 PASSED BY THE FIRST RESPONDENT. EXT.P1(b) : COPY OF -D0- FOR THE ASSESSMENT YEAR 2007-08 PASSED BY THE FIRST RESPONDENT. EXT.P2 : COPY OF APPEAL MEMORANDUM DATED 10.1.2012 FOR THE ASSESSMENT YEAR 2005-06 SUBMITTED BY THE PETITIONER BEFORE THE SECOND RESPONDENT. EXT.P2(a) : COPY OF -DO- FOR THE ASSESSMENT YEAR 2006-07 SUBMITTED BY THE PETITIONER BEFORE THE SECOND RESPONDENT. EXT.P2(b) : COPY OF -DO- FOR THE ASSESSMENT YEAR 2007-08 SUBMITTED BY THE PETITIONER BEFORE THE SECOND RESPONDENT. EXT.P3 : COPY OF STAY PETITION DATED 28.3.2012 FOR THE ASSESSMENT YEAR 2005-06 SUBMITTED BY THE PETITIONER BEFORE THE SECOND RESPONDENT. EXT.P3(a) : COPY OF -DO- FOR THE ASSESSMENT YEAR 2006-07 SUBMITTED BY THE PETITIONER BEFORE THE SECOND RESPONDENT. EXT.P3(b) : COPY OF -DO- FOR THE ASSESSMENT YEAR 2007-08 SUBMITTED BY THE PETITIONER BEFORE THE SECOND RESPONDENT. EXT.P4 COPY OF NOTICE DATED 2.03.2012 ISSUED BY THE FIRST RESPONDENT. (Contd...) WP(C).No. 8681 of 2012 (I) EXT.P5 COPY OF REPLY DATED 12.3.2012 GIVEN BY THE PETITIONER TO THE FIRST RESPONDENT. EXT.P6 COPY OF CIRCULAR F. NO. 404/10/2009-ITCC) DATED 1.12.2009 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES. RESPONDENT'S EXHIBITS : NIL //TRUE COPY// P.A. TO JUDGE Mn ANTONY DOMINIC, J ....................................................... W.P.(C)s.8681, 8682 & 8690/2012 .............................................. Dated this the 4th day of April, 2012 JUDGMENT Heard the learned senior counsel for the petitioners and the learned Standing Counsel appearing for the respondents. 2. In W.P.(C).8681/2012 Ext.P1 series are the assessment orders issued under the Income Tax Act against the petitioner therein for the assessment years 2005-06, 2006-07 and 2007-08. Copy of the assessment orders are Ext.P1 series. Against these orders, petitioner therein filed Ext.P2 series of appeals together with Ext.P3 series of stay petitions which are pending consideration of the second respondent. While so, Ext.P4 notice of recovery has been issued and that led the petitioner to file this writ petition. 3. Insofar as W.P.(C).8082/2012 is concerned, the assessment orders involved are pertaining to the years 2006-07 and 2007-08 and Exts.P1 and P1(a) are the assessment orders. Against these orders, Exts.P2 and P2(a) appeals have been filed together with Exts.P3 and P3(a) stay petitions. Appeals and Stay petitions are pending before the second respondent and while so, Ext.P4 notice W.P.(C).8681, 8682 & 8690/12 2 of recovery has been issued. 4. In W.P.(C).8690/2012, Ext.P1 series of assessment orders under the Income Tax Act have been issued against the petitioner therein for the assessment years 2005-06, 2006-07 and 2007-08. Here again, Ext.P2 series of appeals have been filed and Ext.P3 series are the stay petitions. Appeals and stay petitoins are pending before the second respondent. Meanwhile, recovery proceedings have been initiated by Ext.P4 notice. It is in these circumstances, the writ petition is filed. 5. Learned senior counsel for the petitioners contended that in the light of Ext.P6 Circular issued by the CBDT, recovery proceedings now initiated are totally unwarranted. 6. Learned Standing Counsel appearing for the respondents sought to justify the recovery proceedings. From the above facts it is evident that the statutory appeals filed by the petitioners against the orders of assessment together with stay petitions are pending before the Appellate authority, the second respondent in these writ petitions. W.P.(C).8681, 8682 & 8690/12 3 7. Taking note of the above, I dispose of these writ petitions directing the Appellate authority, the second respondent in these writ petitions, to consider and pass orders on Ext.P3 series in W.P.(C).8681/2012, Exts.P3 and P3(a) in W.P.(C).8682/2012 and Ext.P3 series in W.P.(C).8690/2012 which are the stay petitions filed by the respective petitioners along with the respective appeals. This the Appellate authority shall do with notice to the parties concerned and as expeditiously as possible at any rate within four weeks of receipt of a copy of this judgment. It is directed that in the meanwhile, recovery proceedings pursuant to Ext.P4 notices in these writ petitions will stand stayed. Petitioners shall produce a copy of this judgment along with a copy of the writ petitions before the Appellate authority for compliance. ANTONY DOMINIC, Judge mrcs "