TRISHA CHARITABLE TRUST, V. THE INCOME TAX OFFICER,

WP(C)/6074/2020

AI Insights

The case involves M/s. Trisha Charitable Trust, represented by its chairman, who filed a writ petition challenging the delay in the consideration of a stay petition related to an assessment order under the Income Tax Act. The petitioner had filed an appeal against the assessment order and a stay petition, both dated 20.01.2020, for the assessment year 2017-18. The petitioner argued that the delay in the appellate authority's decision on the stay petition allowed the assessing officer to proceed with recovering the disputed tax amount, potentially rendering the statutory appeals ineffective. The court, after reviewing the relevant documents, found merit in the petitioner's request and issued directions to expedite the stay petition's consideration and temporarily halt any recovery actions.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 693433 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 28-02-2020
• 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
• Keywords: Appeal; Assessment Order; Coercive Steps; Income Tax; Stay Petition
• Section: 220(6); 221(1)

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.6074 OF 2020(H) PETITIONER/S: M/S.TRISHA CHARITABLE TRUST, MANISSERY, OTTAPPALAM, PALAKKAD-679 521, REPRESENTED BY ITS CHAIRMAN KODAKKATUTHODY RAMASWAMY. BY ADVS. SRI.T.M.SREEDHARAN (SR.) SMT.NISHA JOHN SRI.V.P.NARAYANAN RESPONDENT/S: 1 THE INCOME TAX OFFICER, EXEMPTION WARD, AAYAKAR BHAVAN, SHAKTHAN THAMPURAN NAGAR, THRISSUR-682 001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, SHAKTHAN THAMPURAM NAGAR, THRISSUR-682 001. OTHER PRESENT: SC - SRI. JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No. 6074/2020 -2- J U D G M E N T Dated this the 28th day of February 2020 The petitioner filed appeal in Ext.P2 aggrieved by the order of assessment in Ext.P1 made under the Income Tax Act. The petitioner has filed the appeal with Ext.P3 stay petition. The petitioner prays for appropriate direction to the appellate authority to consider and dispose of Ext.P3 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 Ext.P3 results in the assessing officer taking steps for recovering the tax amount which is under challenge in Ext.P2. The assessing officer, if is successful in his effort the statutory appeals would become either academic or ineffective. It is further contended by the petitioner that in the manner the law provides for protecting W.P.(C) No. 6074/2020 -3- the interest of appellant pending appeals, the order on stay petition is passed expeditiously. Hence the writ petition. 3. Perused Exts.P1, P2, P3 and P4 series. Prima facie I am satisfied that a case is made out for issuing necessary directions to second respondent to dispose of the stay petition in Ext.P3. 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/second respondent considers and disposes of Ext.P3 as early as possible, preferably within three 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 order under appeal for three months from today. Sd/- S.V.BHATTI JUDGE jjj W.P.(C) No. 6074/2020 -4- APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 20.12.2018 PASSED BY THE 1ST RESPONDENT FOR AY 2017-18 ALONG WITH DEMAND NOTICE AND COMPUTATION OF INCOME. EXHIBIT P2 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 20.01.2020 FOR AY 2017-18 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P3 TRUE COPY OF THE STAY PETITION DATED 20.01.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY 2017-18. EXHIBIT P4 TRUE COPY OF THE APPLICATION DATED 22.02.2020 SUBMITTED BY THE PETITIONER UNDER SECTION 220(6) BEFORE THE 1ST RESPONDENT AY 2017-18. EXHIBIT P5 TRUE COPY OF THE NOTICE DATED 10.02.2020 ISSUED UNDER SECTION 221(1) BY THE 1ST RESPONDENT. "