M/S.SUKAM CONSTRUCTIONS PVT. LTD V. INCOME TAX OFFICER

WP(C)/29690/2018

AI Insights

In this writ petition, M/s. Sukam Constructions Pvt. Ltd, represented by its managing director, challenged the coercive actions initiated by the Income Tax Officer, Ward-2(1), Corp-Range-2, Kochi, before the appellate authority could consider their stay petition related to an assessment order. The petitioner had already filed an appeal against the assessment order and a stay petition with the Commissioner of Income Tax (Appeals)-I, Ernakulam. The primary legal issue was the premature initiation of coercive steps by the tax authorities despite the pending stay petition. The court's decision underscored the principle of procedural fairness, ensuring that the appellate authority has the opportunity to review the stay petition before any coercive measures are enforced.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 755146 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 12-09-2018
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: C S MANU
• Keywords: Assessment Order; Coercive Steps; Income Tax; Procedural fairness; Stay Petition
• Section: 143; 44(A)(B)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU WEDNESDAY,THE 12TH DAY OF SEPTEMBER 2018 / 21ST BHADRA, 1940 WP(C).No. 29690 of 2018 PETITIONER: M/S.SUKAM CONSTRUCTIONS PVT. LTD II FLOOR, MARY TOWER, UNIVERSITY JUNCTION, KALAMASSERY, KOCHI-682033, REPRESENTED BY ITS MANAGING DIRECTOR, P.KHALEEL, AGED 60 YEARS, S/O.SYED MOHAMMED, PARAMBATHKANDI HOUSE, KUNJUNNIKKARA, ULIYANNOOR P.O., ALWAYE-683108. BY ADV. SRI.C.S.MANU RESPONDENTS: 1 INCOME TAX OFFICER WARD-2(1), CORP-RANGE-2, KOCHI. 2 COMMISSIONER OF INCOME TAX, (APPEALS)-I, ERNAKULAM, PIN-682015. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.09.2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: JUDGMENT The petitioner, an assessee under the Income Tax Act, on the rolls of the 1st respondent, questioned the Ext.P1 assessment order, before the 2nd respondent. The petitioner has also filed a stay petition in the appeal. Ventilating his grievance that the authorities are taking coercive steps before the appellate authority could consider the stay petition in the appeal, the petitioner has filed this writ petition. WP(C).No. 29690 of 2018 2 2. Heard the learned counsel for the petitioner and the learned Government Pleader. I reckon the petitioner has exercised its statutory remedy of filing an appeal. It appears that it has also filed a stay petition. Procedural fairness demands that the authorities may wait, before taking further steps, until the appellate authority decides on the stay petition. Therefore, I dispose of the writ petition directing the respondent authority to defer coercive steps until the 2nd respondent considers the stay petition. I also hope that the 2nd respondent will dispose of the stay petition expeditiously. Sd/- DAMA SESHADRI NAIDU JUDGE APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 30.12.2016 PASSED BY THE 1ST RESPONDENT UNDER SECTION 143 OF THE INCOME TAX ACT, 1961. EXHIBIT P2 TRUE COPY OF THE DEMAND NOITCE DATED 30.12.2016 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER. EXHIBIT P3 TRUE COPY OF THE ORDER DATED 15.3.2018 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P3 A TRUE COPY OF THE DEMAND NOTICE DATED 15.3.2018 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER WP(C).No. 29690 of 2018 3 WITH RESPECT TO THE ASSESSMENT YEAR 2014-15. EXHIBIT P4 TRUE COPY OF THE APPEAL PETITION DATED 13.4.2018 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P4 A TRUE COPY OF THE ACKNOWLEDGMENT RECEIPT DATED 14.4.2018 ISSUED BY THE THE 2ND RESPONDENT TO THE PETITIONER. EXHIBIT P5 TRUE COPY OF THE STAY PETITION DATED 12.7.2018 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P6 TRUE COPY OF THE STATUTORY AUDIT REPORT DATED 3.9.2014 IN RESPECT OF THE ASSESSMENT YEAR 2015-16 UNDER SECTION 44 (A)(B) OF THE INCOME TAX ACT, 1961 SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. EXHIBIT P6 A TRUE COPY OF THE BALANCE SHEET AS AT 3.9.2014 OF THE PETITIONER CERTIFIED BY THE CHARTERED ACCOUNTANT. EXHIBIT P7 TRUE COPY OF THE NOTICE DATED 26.6.2018 ISSUED BY THE 1ST RESPONDENT TO THE MANAGING PARTNER, M/S.ALHIND BUILDERS, KOZHIKODE-673032. EXHIBIT P7 A TRUE COPY OF THE NOTICE DATED 26.6.2018 ISSUED BY THE 1ST RESPONDENT TO THE PRINCIPAL OFFICER, MATHER PROJECTS PVT. LTD., ERNAKULAM- 682035. EXHIBIT P7 B TRUE COPY OF THE NOTICE DATED 20.6.2018 ISSUED BY THE 1ST RESPONDENT TO THE PRINCIPAL OFFICER, KHANALAKSHMI BANK LTD., THRISSUR- 680001. EXHIBIT P7 C TRUE COPY OF THE NOTICE DATED 20.6.2018 ISSUED BY THE 1ST RESPONDENT TO THE MANAGING PARTNER, M/S.MOOPPEN BUILDERS, ALWAYE-683106. RESPONDENTS' EXHIBITS NIL // TRUE COPY // P.A. TO JUDGE SD "