Akay Natural Ingredients Private Limited, (Formerly Akay Flavours And Aromatics (P) Limited) v. The Deputy Commissioner of Income-tax, DCIT Corporate 1(1), Kochi / The Commissioner of Income-tax (Appeals)-I, Kochi
|Akay Natural Ingredients Private Limited, (Formerly Akay Flavours And Aromatics (P) Limited)
|The Deputy Commissioner of Income-tax, DCIT Corporate 1(1), Kochi / The Commissioner of Income-tax (Appeals)-I, Kochi
|HIGH COURT OF KERALA AT ERNAKULAM
|Date of Order
|disputed amount • demand notice • stay petition • time limit
|No.17771 OF 2020(V) 2 JUDGMENT Aggrieved by Ext.P1 assessment order under the Income Tax Act, the petitioner has preferred Ext.P2 appeal together with Ext.P3 stay petition before the 2nd respondent. Further to a direction from this court, the 2nd respondent proceeded to dispose the stay petition by mechanically directing the petitioner to pay 20 of the disputed amount as a pre-condition for stay of the balance amounts confirmed against the petitioner, pending disposal of the appeal. The learned Senior counsel for the petitioner would submit that the 2nd respondent erred in passing the stay order without considering the merits of the case but by merely relying on CBDT Circulars. On a consideration of the facts and circumstances of the case as also the submissions made across the Bar, I find that Ext.P7 order of the 2nd respondent cannot be legally sustained inasmuch as it does not consider the merits of the petitioner s case in the appeal, and further has to be seen as passed under dictation, based on the instructions issued by the CBDT. As a quasi-judicial authority, the 2 nd respondent cannot see his WP(C). I therefore quash Ext.P7 order and direct the 2nd respondent to consider and pass orders on Ext.P2 appeal within an outer time limit of six months from the date of receipt of a copy of this judgment, after hearing the petitioner. Recovery steps for recovery of amounts confirmed against the petitioner by Ext.P1 assessment order shall be kept in abeyance till such time as orders are passed in the appeal and the order communicated to the petitioner. In view of the direction issued above, Ext.P7 stay order passed by the 2 nd respondent is quashed.