Case Law Details
Biju Krishna Pillai Vs CIT (Kerala High Court)
The Kerala High Court recently issued a significant stay order in the case of Biju Krishna Pillai versus the Commissioner of Income Tax, putting a halt to recovery proceedings until a final decision is reached. This article provides a detailed analysis of the judgment/order issued by the court.
The petitioner filed a writ petition seeking direction to the Commissioner of Income Tax (Appeals) to dispose of the appeal and application for stay of proceedings for tax recovery. The court noted that appeals are now being decided by the National Faceless Appeal Centre.
The petitioner’s counsel argued that the petitioner’s case is similar to that of his brother, whose appeal was allowed by the National Faceless Appeal Centre. It was further argued that any demand made in pursuance of the assessment order would prejudice the petitioner.
The court directed the National Faceless Appeal Centre to decide the petitioner’s appeal expeditiously, within three months, and ordered a stay on coercive recovery steps during this period.
The Kerala High Court’s decision to stay recovery proceedings until the final order provides relief to the petitioner and underscores the importance of timely disposal of appeals. This judgment highlights the evolving landscape of tax appeals and the role of technology in streamlining the process.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The present writ petition has been filed for a direction to the first respondent, Commissioner of Income Tax (Appeals) to dispose of Ext.P3 appeal and Ext.P4 application for stay of proceedings for recovery of tax assessed vide Ext.P1 assessment order dated 19.12.2019 and to quash Ext.P5 letter dated 6.7.2023.
2. Jose Joseph, learned Standing Counsel for the Income Tax Department submits that now appeals are being decided by the National Faceless Appeal Centre.
3. Learned counsel for the petitioner has invited attention of this Court to Ext.P6 order dated 17.8.2023, whereby the appeal filed in the case of the brother of the petitioner was allowed by the National Faceless Appeal Centre, Delhi, and submitted that petitioner’s case is identically situated to that of his brother and since the appeal filed in the case of his brother was allowed, petitioner is also entitled to the same treatment in the appeal pending before the National Faceless Appeal Centre against the assessment order dated 19.12.2019 in respect of the assessment year 2017-18, Ext.P1. He further submits that if demand is made in pursuance to the assessment order, petitioner would be prejudiced.
4. Jose Joseph, learned Standing Counsel for the Department submitted that as per the records, neither Ext.P3 appeal nor Ext.P4 stay petition has been decided.
5. Considering the aforesaid facts, the appellate authority, i.e. the National Faceless Appeal Centre, Delhi is directed to decide Ext.P3 appeal filed by the petitioner against Ext.P1 assessment order dated 19.12.2019 as expeditiously as possible, at any rate, within a period of three months from today. No coercive steps for recovery of the demand shall be taken against the petitioner for the said period. Let this judgment be communicated to the National Faceless Appeal Centre, Income Tax Department, Ministry of Finance, Government of India, Delhi, for necessary compliance by Sri. Jose Joseph, learned Standing Counsel for the Department.
With the aforesaid directions, the present writ petition stands finally disposed of. Pending interlocutory applications, if any, in the writ petition would stand dismissed.
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