SREEVALSAM GOLD AND DIAMONDS PRIVATE LTD V. THE ASSISTANT COMMISSIONER OF INCOME TAX

WP(C)/5900/2020

AI Insights

Sreevalsam Gold and Diamonds Private Ltd filed a writ petition challenging the delay in the disposal of their stay petitions related to tax assessment orders for the assessment years 2016-17 and 2017-18. The petitioner argued that the delay in the appellate authority's decision on the stay petitions allowed the assessing officer to proceed with tax recovery, potentially rendering the appeals academic or ineffective. The High Court, upon reviewing the case, found merit in the petitioner's request and issued directions to expedite the process and halt any recovery actions temporarily.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 693512 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 28-02-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: S HANEEFF; M H ASIF ALI
• Keywords: Appeal; Assessment Order; 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 FRIDAY, THE 28TH DAY OF FEBRUARY 2020 / 9TH PHALGUNA, 1941 WP(C).No.5900 OF 2020(J) PETITIONER/S: SREEVALSAM GOLD AND DIAMONDS PRIVATE LTD SREEVALSAM BUILDING, M.C. ROAD, PANDALAM, PATHANAMTHITTA-689501, REPRESENTED BY ITS DIRECTOR, SHRI. VARUN RAJ, BY ADVS. SRI.S.MUHAMMED HANEEFF SRI.M.H.ASIF ALI RESPONDENT/S: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE, AAYAKAR BHAVAN, KARBALA JUNCTION, KOLLAM-691001. 2 THE COMMISSIONER OF INCOME TAX(APPEALS)III 28/243, POORNIMA, PANAMPILLY NAGAR, COCHIN-682036. SC JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.5900 OF 2020(J) 2 JUDGMENT Dated this the 28th day of February 2020 The petitioner filed appeals in Exts.P3 and P4 aggrieved by the orders of assessment in Exts.P1 and P2 made under Income Tax Act, 1961. The petitioner has filed the appeals with Exts.P5 and P6 stay petitions. The petitioner prays for appropriate direction to the appellate authority to consider and dispose of Exts.P5 and P6 expeditiously. 2. The case of petitioner is that either the mere filing of appeal or pendency of appeal does not amount to granting stay by the appellate authority. The delay in considering and disposing of Exts.P5 and P6 results in the assessing officer taking steps for recovering the tax amount which is under challenge in Exts.P3 and P4. 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 stay petitions are passed WP(C).No.5900 OF 2020(J) 3 expeditiously. Hence the writ petition. 3. Perused Exts.P1, P2, P3, P4, P5 and P6. Prima facie I am satisfied that a case is made out for issuing necessary directions to 2nd respondent to dispose of stay petitions in Exts.P5 and P6. 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 order: (a) The appellate authority/2nd respondent considers and disposes of Exts.P5 and P6 application 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 JS WP(C).No.5900 OF 2020(J) 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 28.12.2019 PASSED BY THE 1ST RESPONDENT FOR AY-2016-17 ALONG WITH DEMAND NOTICE AND COMPUTATION OF INCOME EXHIBIT P2 TRUE COPY OF THE ASSESSMENT ORDER DATED 28.12.2019 PASSED BY THE 1ST RESPONDENT FOR AY-2017-18 ALONG WITH DEMAND NOTICE AND COMPUTATION OF INCOME. EXHIBIT P3 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 21.01.2020 FOR 1Y-2016-17 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P4 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 21.01.2020 FOR AY-2017-18 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P5 TRUE COPY OF THE STAY PETITION DATED 01.02.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2016-17. EXHIBIT P6 TRUE COPY OF THE STAY PETITION DATED 01.02.2010 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2017-18. "