Case Law Details
Chalakkal Antony Jose Valloor Vs ACIT (Kerala high Court)
Introduction: The Kerala High Court, in the case of Chalakkal Antony Jose Valloor vs. ACIT, has directed the expeditious consideration of a stay application related to a tax dispute. The petitioner, engaged in the advertising business, did not file an income tax return under Section 139 of the Income Tax Act for the assessment year 2017-18. The court’s intervention comes in response to the petitioner’s plea for a writ of mandamus to halt coercive proceedings until the appeal and stay application are resolved.
Detailed Analysis: The petitioner’s failure to file the income tax return prompted the issuance of a notice under Section 148 of the Income Tax Act in March 2021. Subsequent notices, including one under Section 142(1) of the Act, were met with no response from the petitioner. Despite multiple opportunities, the petitioner did not comply, leading to a best judgment assessment by tax authorities. The assessed income was determined as Rs.3,85,42,019, and tax demands were issued, along with a penalty order under Section 271B of the Act.
In response to the assessment, the petitioner filed an appeal on August 3, 2022, accompanied by a stay application, currently pending before the second respondent (NFAC). Seeking relief, the petitioner approached the Kerala High Court under Article 226 of the Constitution of India.
The court, while recognizing its limited jurisdiction under Article 226, emphasized the appellate authority’s responsibility to decide the stay application promptly. The writ petition was disposed of with a specific directive to the second respondent to consider and pass appropriate orders on the stay application (Ext.P17) within two months, in accordance with the law.
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