Case Law Details
Shameem Thari Vs ITO (Kerala High Court)
Introduction: The Kerala High Court has issued a directive to the National Faceless Appellate Centre (NFAC) to expedite the resolution of income tax appeals and stay applications. This decision was prompted by the petitioner’s concerns over recovery proceedings related to arrears of income tax. The court’s intervention serves as a means to ensure that taxpayers’ appeals are addressed promptly, preventing undue financial burdens.
1. Background: The petitioner, in this case, sought legal recourse under Article 226 of the Constitution of India. The primary objective was to obtain a court order instructing the 2nd respondent, which is the National Faceless Appellate Centre (NFAC), to expedite the resolution of Ext.P2 series appeals and Ext.P3 series stay applications against Ext.P1 series assessment orders.
2. Delay in Proceedings: The petitioner’s contention revolved around the delay in addressing their appeals and stay applications by the relevant authority. While the petitioner had timely approached the Appellate Authority to challenge the assessment orders in the Ext.P1 series, no decisions had been made either on the stay applications or the appeals. This delay led to the initiation of recovery proceedings regarding the tax arrears determined in the Ext.P1 series.
3. Court’s Directive: The Kerala High Court recognized the petitioner’s legitimate concerns. In response, the court issued a directive to the 2nd respondent (NFAC). The directive entailed passing appropriate orders on Ext.P2 series appeals. If, for any reason, the appeals couldn’t be decided promptly, the court emphasized that Ext.P3 series stay applications filed by the petitioner should at least be addressed in accordance with the law, with a strong emphasis on expeditious resolution.
Conclusion: The Kerala High Court’s directive to expedite the resolution of income tax appeals and stay applications through the National Faceless Appellate Centre (NFAC) is a positive step towards ensuring that taxpayers receive timely responses to their appeals. This intervention aims to prevent undue financial burdens on taxpayers by addressing their concerns promptly and efficiently. It underscores the importance of streamlined and efficient processes in the realm of income tax proceedings, safeguarding taxpayers’ rights and ensuring fairness in the tax assessment and appeal system.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The present writ petition has been filed under Article 226 of the Constitution of India for a direction to the 2nd respondent to dispose of Ext.P2 series appeals and Ext.P3 series stay applications against Ext.P1 series assessment orders.
2. The learned counsel for the petitioner submits that, the petitioner had approached the Appellate Authority on time against the assessment orders in Ext.P1 series. However, no decision has been taken either on stay petitions or appeals and the petitioner is facing recovery proceedings on the arrears of tax determined in Ext.P1 series.
Considering the aforesaid facts, the present writ petition is disposed of, with a direction to the 2nd respondent to pass appropriate orders on Ext.P2 series appeals. However, if it is not possible to decide Ext.P2 series appeals, at least Ext.P3 series stay applications of the petitioner should be decided in accordance with the law, expeditiously.
