TRANS ASIAN SHIPPING SERVICES(P)LTD V. THE COMMISSIONER OF INCOME TAX, COCHIN

WP(C)/26631/2011

AI Insights

The case involves Trans Asian Shipping Services (P) Ltd., the petitioner, who contested the assessment orders issued by the Income Tax Department for the years 2005-06 and 2008-09. The petitioner filed appeals against these orders, which were still pending when the department initiated recovery actions. The petitioner sought a writ to stay these recovery actions, arguing that the appeals had not been resolved and that a previous stay on recovery should be extended. The court had earlier granted a stay on the recovery until a specified date, contingent on the resolution of the appeals, and extended this stay in light of the new deadline for the appeal resolution.

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 699864 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 10-11-2011
• Assessment Year: misc
• Other Referred Cases: WPC.10256 of 2011
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: A K NAMBIAR; E K NANDAKUMAR; JOHN K; BENNY THOMAS; P MENON; KURYAN THOMAS
• Keywords: Appeal; Assessment Order; Coercive steps for recovery; Income Tax; Stay of collection
• Section: 143(3)

Judgement Text

" IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN THURSDAY, THE 10TH NOVEMBER 2011 / 19TH KARTHIKA 1933 WP(C).No. 26631 of 2011(D) --------------------------------------- PETITIONER(S): ------------------------ TRANS ASIAN SHIPPING SERVICES (P)LTD., TRANS ASIA CORPORATE PARK, XIV/396-C, SEAPORT AIRPORT ROAD, CHITTETHUKARA, KAKKANAD, COCHIN-682 037, REPRESENTED BY ITS GROUP GENERAL MANAGER, MR.WILSON THOMAS. BY ADV. SRI.A.K.JAYASANKAR NAMBIAR, SRI.E.K. NANDAKUMAR, SRI.JOHN MATHAI K., SRI.BENNY P.THOMAS, SRI.P. GOPINATH MENON, SRI.KURYAN THOMAS. RESPONDENT(S): ------------------------ 1. THE COMMISSIONER OF INCOME TAX, CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, COCHIN-682 018. 2. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 4(2), CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, COCHIN-682 018. 3. THE COMMISSIONER OF INCOME TAX (APPEALS) II, KERA BHAVAN, COCHIN-682 011. BY ADV. SRI.JOSE JOSEPH, SC, INCOME TAX. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10/11/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs WP(C).No. 26631 of 2011(D) APPENDIX PETITIONER'S EXHIBITS: EXT.P1:- TRUE COPY OF THE ASSESSMENT ORDER PASSED BY THE 2ND RESPONDENT FOR THE ASSESSMENT YEAR 2005-06, DT. 14-12-2010 EXT.P2:- TRUE COPY OF THE ASSESSMENT ORDER PASSED BY THE 2ND RESPONDENT FOR THE ASSESSMENT YEAR 2008-09, DT. 22-12-2010 EXT.P3:- TRUE COPY OF THE APPEAL PREFERRED BY THE PETITIONER AGAINST EXT P1 ASSESSMENT ORDER BEFORE 3RD RESPONDENT APPELLATE AUTHORITY DATED 21.01.2011. EXT.P4:- TRUE COPY OF THE APPEAL PREFERRED BY THE PETITIONER AGAINST EXT.P2 ASSESSMENT ORDER BEFORE THE 3RD RESPONDENT APPELLATE AUTHORITY, DATED 21.1.2011. EXT.P5:- TRUE COPY OF THE APPLICATION FOR STAY RECOVERY, PREFERRED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEAR 2005-06, DATED 20-1-2011. EXT.P6:- TRUE COPY OF THE APPLICATION FOR STAY RECOVERY, PREFERRED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEAR 2008-09, DATED 20.1.2011. EXT.P7:- TRUE COPY OF THE COMMON ORDER PASSED BY THE 2ND RESPONDENT REJECTING EXTS P5 AND P6 APPLICATIONS, DATED 29.3.2011 EXT.P8:- TRUE COPY OF THE APPLICATION FOR STAY FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT IN RESPECT OF THE ASSESSMENT YEAR 2005-06, DATED 29/03/2011. EXT.P9:- TRUE COPY OF THE APPLICATION FOR STAY FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT IN RESPECT OF THE ASSESSMENT YEAR 2008-09, DATED 29-03-2011. EXT.P10:- TRUE COPY OF THE STAY ORDER ISSUED BY THE 2ND RESPONDENT DATED 31.03.2011. WP(C).No. 26631 of 2011(D) EXT.P11:- TRUE COPY OF THE JUDGMENT OF THIS HOB'BLE COURT IN WPC.10256 OF 2011 DATED 4.4.2011. EXT.P12:- TRUE COPY OF THE LETTER SENT BY THE PETITIONER TO THE 3RD RESPONDENT, DATED 19.4.2011. EXT.P13:- TRUE COPY OF THE POSTING NOTICE NO.86/R-2/E/CIT(A)-II/ 2007-08 ISSUED BY THE 3RD RESPONDENT, DATED 11.5.2011. EXT.P13(A):- TRUE COPY OF THE POSTING NOTICE NO.43/R4/E/CIT(A)-II/2011-12 BY THE 3RD RESPONDENT, DATED 11.5.2011. EXT.P13(B):- TRUE COPY OF THE POSTING NOTICE NO.42/R-4/E/CIT(A)-II/ 2011-12- ISSUED BY THE 3RD RESPONDENT, DATED 11.5.2011. EXT.P14:- TRUE COPY OF THE COMMUNICATION RECEIVED BY THE PETITIONER FROM THE 2ND RESPONDENT, DATED 26.9.2011. RESPONDENT'S EXHIBITS:- NIL. //TRUE COPY// P.A. TO JUDGE rs S. SIRI JAGAN, J. ------------------------------------------- W.P.(C) No.26631 of 2011 ---------------------------------------------- Dated this the 10th day of November, 2011 JUDGMENT Against Exts.P1 and P2 assessment orders under the Income Tax Act, the petitioner filed appeals. During the pendency of the appeals, the assessing authority, the 2nd respondent herein treated the petitioner as not in default till 30.9.2011. When coercive steps were initiated for recovery of the tax and interest, the petitioner filed W.P.(C) No.10256/2011, in which by judgment dated 4.4.2011, this Court granted the stay of collection of the balance tax till 30.9.2011, directing the 3rd respondent appellate authority to dispose of Exts.P3 and P4 appeals before 30.9.2011. Although hearing was conducted, orders were not passed in appeals. In the meanwhile, the 3rd respondent sought extension of time for disposing of the appeals by filing a petition in W.P.(C) No.10256/2011 and this Court granted extension of time till 31.12.2011. But, the stay granted was not expressly extended till 31.12.2011. It is under the W.P.(C)No.26631/11 2 above circumstances, the petitioner has filed this writ petition seeking the following reliefs: “a) Call for the records leading to Exhibits P14 notice issued by the 2nd respondent, and quash the same by the issuance of a writ of certiorari or such other writ, order or direction; b) Issue a writ of mandamus or such other writ, order or direction directing the 2nd respondent to refrain from initiating any coercive steps for recovery of the balance amount of tax and interest under Exhibits P1 and P2 assessment orders, pending final orders to be passed by the 3rd respondent Appellate Authority, on Exts.P3 and P4 appeals and communication of the same to the petitioner Company; c) Grant a stay of all further proceedings pursuant to Ext.P14, including proceedings for recovery of tax and interest pursuant to Exhibits P1 and P2 assessment orders, pending disposal of the writ petitioner (Civil).” 2. I am of opinion that corresponding to the extension of time for disposal of the appeals, the stay granted by this Court should also be extended. Accordingly, I dispose of this writ petition directing that recovery of the tax disputed in Exts.P3 and P4 appeals shall stand stayed till disposal of Exts.P3 an P4 appeals. S. SIRI JAGAN, JUDGE acd W.P.(C)No.26631/11 3 W.P.(C)No.26631/11 4 S. SIRI JAGAN, JUDGE acd W.P.(C)No.26631/11 5 "