Case Law Details
Esatto Builders Private Limited Vs Income Tax Appellate Tribunal (Kerala High Court)
Introduction: In a recent legal development, Esatto Builders Private Limited has filed a writ petition before the Kerala High Court, seeking a direction to the Income Tax Appellate Tribunal in Kochi. The petition urges the tribunal to consider their appeal (ITA No. 559/2023) and stay petition (Exhibit P4 and Exhibit P5, respectively) and pass appropriate orders in accordance with the law, after granting the petitioner an opportunity for a hearing.
Detailed Analysis:
1. Background of the Case: Esatto Builders Private Limited underwent an assessment under Section 143(3) of the Income Tax Act, 1961, for the assessment year 2012-2013. The assessment was concluded with an assessment order dated 30.03.2015 (Exhibit P1), which determined the total income of the petitioner to be Rs. 1,88,38,176 and demanded a tax amount of Rs. 82,93,890 (Exhibit P2).
2. Filing an Appeal: Dissatisfied with the assessment, the petitioner filed an appeal under Section 250 of the Income Tax Act, 1961, with the National Faceless Assessment Centre, respondent No.2. The first appellate authority, through an order dated 15.05.2023 (Exhibit P3), dismissed the appeal, asserting that the petitioner failed to substantiate its claims and upheld the additions made by the assessing authority.
3. Esatto Builders’ Appeal to ITAT: Challenging the order of the first appellate authority, Esatto Builders filed an appeal (Exhibit P4) before the Income Tax Appellate Tribunal in Kochi.
4. Pre-Deposit Requirement: An essential aspect of the case is that the petitioner has not made the required pre-deposit of the assessed tax. The petitioner, through its counsel, has submitted that they will make the necessary pre-deposit of tax within ten days from the court’s order.
5. Court’s Decision: Considering the petitioner’s commitment to make the pre-deposit, the Kerala High Court has disposed of the writ petition. The petitioner has been granted liberty to deposit the required pre-deposit of the assessed tax within ten days. Once the payment is made, the appeal (Exhibit P4) and the stay petition (Exhibit P5) filed by the petitioner will be heard and decided on their merits expeditiously, with an opportunity for the petitioner to present their case. Additionally, for a period of 15 days, no coercive actions will be taken against the petitioner pursuant to Exhibit P1 assessment order.
Conclusion: The Kerala High Court’s decision in the case of Esatto Builders Private Limited serves as a reminder of the pre-deposit requirement for income tax appeals. In this case, the court has directed the petitioner to make the necessary pre-deposit of the assessed tax within ten days. Once this pre-deposit is made, the appeal and the stay petition will be considered on their merits, granting the petitioner an opportunity for a hearing. This decision upholds the legal process’s requirements and ensures that appeals are heard and decided fairly and expeditiously.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The present writ petition has been filed by the petitioner seeking a direction to the first respondent i.e., the Income Tax Appellate Tribunal, Kochi to consider Exhibit P4 appeal, ITA No. 559/2023, and Exhibit P5 stay petition and pass appropriate orders in accordance with law, after affording an opportunity of hearing to the petitioner.
2. The assessment under Section 143(3) of the Income Tax Act, 1961 (‘Act, 1961’ for short) for the assessment year 2012-2013 was finalised vide Exhibit P1 assessment order dated 30.03.2015. The total income of the petitioner for the purpose of assessment was finalised at Rs.1,88,38,176/- and Exhibit P2 notice was issued to the petitioner demanding tax amount of Rs.82,93,890/-.
3. Aggrieved by the same, the petitioner has filed an appeal under Section 250 of the Act, 1961 before the National Faceless Assessment Centre, respondent No.2. The appellate authority, vide Exhibit P3 order dated 15.05.2023, dismissed the appeal holding that the petitioner failed to substantiate its claim and confirmed the additions made to the returned income by the assessing authority.
Impugning the said order passed by the first appellate authority, the petitioner has filed Exhibit P4 appeal before the Income Tax Appellate Tribunal, Kochi.
4. Admittedly, the petitioner has not made the required pre deposit of the assessed tax for entertaining the application for stay. The learned counsel for the petitioner submits that the petitioner will deposit the required pre deposit of tax within a period of 10 days from today.
5. Considering the said submission, the present writ petition is disposed of, with liberty to the petitioner to make deposit of the required pre deposit of the assessed tax within ten days from today. If the petitioner makes the payment as directed above, Exhibit P5 application for stay filed by the petitioner along with Exhibit P4 appeal shall be heard and decided on merits expeditiously, after giving an opportunity of hearing to the petitioner. For a period of 15 days, no coercive steps shall be taken against the petitioner pursuant to Exhibit P1 assessment order.
Writ petition stands finally disposed of.
