THANIKKOTTIL UNNIKRISHNAN V. THE ASSISTANT COMMISSIONER OF INCOME TAX

WP(C)/6278/2020

AI Insights

The case involves Thanikottil Unnikrishnan, a P.W.D contractor, who challenged the actions of the Income Tax Department following an assessment order that raised a demand of Rs.48,12,920. The petitioner had filed an appeal and a stay application against this order, which were still pending when the Income Tax Department issued garnishee notices to his banks. The petitioner argued that these actions were illegal and arbitrary as they proceeded despite the pending appeal and stay application. The court did not express any opinion on the merits of the case but focused on the procedural fairness regarding the stay application.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 753916 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 03-03-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: ANIL NAIR; R SREEJITH; ARYA ANIL; GOKULRAJ; SRI HARINI
• Keywords: Appeal; Assessment Order; Garnishee notice; Income Tax; Stay Application
• Section: 226(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL TUESDAY, THE 03RD DAY OF MARCH 2020 / 13TH PHALGUNA, 1941 WP(C).No.6278 OF 2020(H) PETITIONER/S: THANIKKOTTIL UNNIKRISHNAN AGED 45 YEARS P.W.D CONTRACTOR, THANNIKKOTTIL HOUSE, VENGASSERY, AMBALAPARA, PALAKKAD-679513 BY ADVS. SRI.ANIL D. NAIR SRI.R.SREEJITH SMT. ARYA ANIL SHRI.GOKULRAJ L. SMT.SRI HARINI S.P. RESPONDENT/S: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-1, PALAKKAD-678014 2 THE COMMISSIONER OF INCOME TAX(APPEALS) KOZHIKODE-673001 3 THE MANAGER STATE BANK OF INDIA, PALLICKAL, PB NO.2, ALAPPUZHA-590503 4 THE MANAGER SOUTH INDIAN BANK, ST.GEORGE AUDITORIUM BUILDING, KADEESA ORTHODOX CHURCH, KAYAMKULAM, ALAPPUZHA-690502 5 THE MANAGER DHANALAXMI BANK LTD, TDB OFFICE, CLIFF HOUSE ROAD, NANTHANCODE, TRIVANDRUM-695003 SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.6278 OF 2020(H) 2 JUDGMENT The grievance of the petitioner in the instant case is that against Ext.P1 assessment order dated 18.12.2019 raising a demand of Rs.48,12,920 preferred Ext.P2 appeal and Ext.P3 stay application. However, during the interregnum petitioner is confronted with notices under Section 226(3) of the Income Tax Act, 1961 issued by the 1st respondent addressed to the 3rd, 4th and 5th respondents colly. Learned Counsel for the petitioner submits that the action of the 1st respondent is illegal and arbitrary, since the appeal and stay petition preferred against Ext.P1 assessment order is still pending. 2. Learned Standing Counsel appearing on behalf of the Income tax submitted that the appellate authority would consider the request of the petitioner on the basis of the time frame to be fixed by this Court. 3. Having heard learned Counsel for the petitioner and the learned Standing Counsel for the Income Tax Department, this writ petition is disposed with a direction to the 2nd WP(C).No.6278 OF 2020(H) 3 respondent to consider the application for stay regarding the demand raised, in view of the garnishee orders issued by the 1st respondent addressed to the 3rd,4th, and 5th respondents, within 15 days from the date of receipt of the copy of this judgment. Petitioner shall also appear before the 2nd respondent on 6.3.2020 and the 15 days period will be construed thereafter. Till such time, implementation of Ext.P4 garnishee notices issued colly is ordered to be kept in abeyance. I also make it clear that the directions made above shall not be construed as an expression of opinion on the merits of the matter. Sd/ AMIT RAWAL JUDGE Jm/ WP(C).No.6278 OF 2020(H) 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 18.12.2019 EXHIBIT P2 TRUE COPY OF THE APPEAL FILED BEFORE TH 2ND RESPONDENT DATED10.1.2020 EXHIBIT P3 TRUE COPY OF THE STAY PETITION FILED BEFORE THE 2ND RESPONDENT DATED 6.2.2020 EXHIBIT P4 TRUE COPY OF THE NOTICE UNDER SECTION 226(3) OF THE INCOME TAX ACT, 1961 ADDRESSED TO THE 3RD RESPONDENT DATED 14.2.2020 EXHIBIT P4(A) TRUE COPY OF THE NOTICE UNDER SECTION 226(3) OF THE INCOME TAX ACT, 1961 ADDRESSED TO THE 4TH RESPONDENT DATED 14.2.2020 EXHIBIT P4(B) TRUE COPY OF THE NOTICE UNDER SECTION 226(3) OF THE INCOME TAX ACT, 1961, ADDRESSED TO THE 5TH RESPONDENT DATED 14.02.2020 "