USHADEVI PURUSHOTHAMAN V. THE COMMISSIONER OF INCOME TAX (APPEALS-II)

WP(C)/6451/2020

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In this writ petition, Ushadevi Purushothaman, the proprietrix of Bell Foods, challenged the insistence of the income tax authorities for a 20% payment of the disputed amount as a precondition for considering her appeals and application for condonation of delay against the assessment orders. The petitioner argued that this requirement was not in accordance with the judicial precedents set by the High Court. The court, after hearing the arguments and reviewing the documents, decided in favor of the petitioner, directing the appellate authority to proceed with the appeals and the application without the precondition of the 20% payment.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 753893 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 04-03-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: ALIAS CHERIAN
• Keywords: 20% payment; Assessment Order; Condonation of delay; Government Circular; Income Tax
• Section: 143(2)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL WEDNESDAY, THE 04TH DAY OF MARCH 2020 / 14TH PHALGUNA, 1941 WP(C).No.6451 OF 2020(F) PETITIONER: USHADEVI PURUSHOTHAMAN AGED 70 YEARS W/O.R.VIKKRAMAN, PROPRIETRIX, BELL FOODS, PALLICHAL ROAD, THOPPUMPADY, KOCHI-682005. BY ADV. SRI.ALIAS M.CHERIAN RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS-II) INCOME TAX OFFICE, PANAMPILLAY NAGAR, ERNAKULAM, PIN-682036. 2 THE ASSISTANT COMMISSIONER OF INCOME TAX, WARD 2(5), NON CORPORATE RANGE, XVI/997, A-21, 2ND FLOOR, LG TOWERS, P.T.JACOB ROAD, THOPPUMPADY, KOCHI-682005. SRI CHRISTOPHER ABRAHAM SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.6451 OF 2020(F) 2 JUDGMENT The grievance of the petitioner in the instant case is that against the assessment orders passed under Section 143(2), Exts.P1, P6 and P10, the petitioner has preferred appeals, Exts.P3, P8 and P12 along with an application for condonation of delay and the income tax authorities are insisting for payment of 20% of disputed amount on the basis of the Government circular dated 31st July 2017. The aforementioned circular has not been appreciated by this Court in a catena of the judgments and thus urging this Court for issuance of writ by directing respondents to decide the appeal and application for condonation of delay, including interim prayer without insistence of 20% of the amounts. Having heard the learned counsel for the parties and apprised the paper book, I dispose of the writ petition with a direction to the appellate authority to decide the appeals and the application for condonation of delay preferred against the assessment orders, Exts.P1, P6 and P10 without insisting 20% of the payment in accordance with law. Steps for recovery of WP(C).No.6451 OF 2020(F) 3 amounts pertaining to the demand notices shall be kept in abeyance. The stay of the demand is till the decision on the application for condonation of delay or any interim prayer. The writ petition is disposed of. Sd/- AMIT RAWAL nak JUDGE WP(C).No.6451 OF 2020(F) 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF ASSESSMENT ORDER ALONG WITH INCOME TAX COMPUTATION FORM DATED 14.12.2017. EXHIBIT P2 TRUE COPY OF NOTICE OF DEMAND DATED 14.12.2017 ISSUED BY 2ND RESPONDENT. EXHIBIT P3 TRUE COPY OF APPEAL DATED 08.06.2018 FILED BEFORE THE 1ST RESPONDENT. EXHIBIT P4 TRUE COPY OF TAX PAYER COUNTERFOIL DATED 27.02.2018 ISSUED FROM STATE BANK OF INDIA. EXHIBIT P5 TRUE COPY OF NOTICE F.NO.ITO/NC WARD 2(5)/2015-16 DATED 14.12.2017 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P6 TRUE COPY OF ORDER NO.ITBA/PNL/M/271B/2018-19/1010320751(1) DATED 29.06.2018 ISSUED BY 2ND RESPONDENT. EXHIBIT P7 TRUE COPY OF NOTICE OF DEMAND NO.ITBA/PNL/M/27IB/156/2018- 19/1010320751(1) DATED 29.06.2018 ISSUED BY 2ND RESPONDENT. EXHIBIT P8 TRUE COPY OF APPEAL DATED 05.10.2019 FILED BEFORE THE 1ST RESPONDENT. EXHIBIT P8(A) TRUE COPY OF FORM NO.35 OF THE APPEAL DATED 08.10.2019 FILED BEFORE THE 1ST RESPONDENT. EXHIBIT P9 TRUE COPY OF TAX PAYER COUNTERFOIL DATED 05.10.2019 ISSUED FROM STATE BANK OF INDIA. EXHIBIT P10 TRUE COPY OF ORDER NO.ITBA/COM/F/17/2019-20/1022261744(1) DATED 13.12.2019 ISSUED BY THE 2ND RESPONDENT. WP(C).No.6451 OF 2020(F) 5 EXHIBIT P11 TRUE COPY OF NOTICE OF DEMAND DATED NIL ISSUED BY THE 2ND RESPONDENT. EXHIBIT P12 TRUE COPY OF APPEAL DATED 13.01.2020 FILED BEFORE THE 1ST RESPONDENT. EXHIBIT P12(A) TRUE COPY OF FORM NO.35 OF THE APPEAL DATED 13.01.2020 FILED BEFORE THE 1ST RESPONDENT. EXHIBIT P13 TRUE COPY OF TAX PAYER COUNTERFOIL DATED 13.01.2020 ISSUED FROM STATE BANK OF INDIA. EXHIBIT P14 TRUE COPY OF OFFICE MEMORANDUM F.NO.404/72/93-ITCC DATED 31.07.2017 ISSUED BY GOVERNMENT OF INDIA. //TRUE COPY// P.A TO JUDGE "