Wp(C)/17640/2023 Of Hailstone Innovations Pvt. Ltd v. The Assistant Commissioner Of Income Tax

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE C.S.DIAS THURSDAY, THE 15 DAY OF JUNE 2023 / 25TH JYAISHTA, 1945WP(C) NO. 17640 OF 2023 PETITIONERS: 1HAILSTONE INNOVATIONS PVT. LTD.DOOR NO. 4/381 B, AYYANKUNNU PO MUNDUR, THRISSUR, KERALA. PIN- 680 541. REPRESENTED BY ITS MANAGING DIRECTOR MR. R.J. WILLIAMS 2R.J. WILLIAMS,AGED 49 YEARSVELLOTTINGAL HOUSE, ANTONY ROAD, OLLUR, THRISSUR, KERALA – 680306. BY ADVS.ANIL D. NAIRTELMA RAJUANJANA A.AADITYA NAIR RESPONDENTS: 1THE ASSISTANT COMMISSIONER OF INCOME TAX,CENTRAL CIRCLE 1,KANDOMKULATHY TOWERS INCOME TAX OFFICEOPPOSITE MAHARAJAS COLLEGE GROUND KOCHI-682 001.CENTRAL CIRCLE 1,KANDOMKULATHY TOWERS INCOME TAX OFFICEOPPOSITE MAHARAJAS COLLEGE GROUND KOCHI-682 001. 2UNION OF INDIA,REPRESENTED BY ITS SECRETARY DEPARTMENT OF REVENUE, MINISTRY OF FINANCE NORTH BLOCK, NEW DELHI- 110001, PIN- 110001 3INTERIM BOARD FOR SETTLEMENT,IBS-2, DELHI CIVIC CENTRE MINTO ROAD, NEW DELHI- 110002, PIN - 110002 BY ADV JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON15.06.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Dated this the 15[th ] day of June, 2023JUDGMENT The writ petition is filed, inter alia, to direct the 3[rd]respondent to hear and pass orders on an applicationsubmitted by the first petitioner as acknowledged byExt.P3. 2. The first petitioner is a company and the second petitioner is the Managing Director of the firstpetitioner. A proceeding was initiated by therespondents against the petitioners under Section 132 ofthe Income Tax Act, 1961. The petitioners were advisedto opt for settlement by approaching the SettlementCommission. The petitioners came to learn that adecision was taken to discontinue the Commission. Thepetitioners challenged the decision before this Court. ByExt.P2 order, this Court directed the second respondenttherein to accept the petitioners application. Accordingly, petitioners filed an application, asevidenced by Ext.P3 acknowledgment. Later, the Bill todiscontinue the Commission was made an Act, whichalso has been challenged before this Court inW.P(C)No.13044/2021 and is pending consideration.Thereafter, the second respondent has issued Ext.P5order, extending the time limit for filing of applicationbefore the Commission till 30.9.2021. Subsequently, byExt.P6 notification, the second respondent had extendedthe period from completion of assessment till 30.9.2021.The proceedings got extended by virtue of the aboveorders passed. Now, the petitioners are being heldresponsible for the delay in initiation of the proceedingsunder Section 153A. The third respondent was pleasedto post the settlement application for hearing on16.5.2023. During the course of hearing, the thirdrespondent has observed that the application is notmaintainable in law. The stand of the third respondent is untenable. Hence, the writ petition. 3. Heard; Sri. Anil. D. Nair, the learned Counsel appearing for the petitioners and Sri.Jose Joseph, thelearned Standing Counsel appearing for therespondents. 4. Sri. Jose Joseph, on instructions, submitted thatthe third respondent has heard the petitioners andwould consider the question of maintainability of theapplication as a preliminary issue. The third respondentwould take decision on the application within four weeksfrom today. The said submission is recorded. Having considered the pleadings and materials onrecord and in the light of the submission made by thelearned Standing Counsel, I direct the third respondentto consider and dispose of the application, in accordancewith law and as expeditiously as possible, at any rate,within a period of one month from the date of receipt ofa certified copy of the judgment. I make it clear that this Court has not expressed anything on the merits ofthe application. The writ petition is ordered accordingly. SD/- Having considered the pleadings and materials onrecord and in the light of the submission made by thelearned Standing Counsel, I direct the third respondentto consider and dispose of the application, in accordancewith law and as expeditiously as possible, at any rate,within a period of one month from the date of receipt ofa certified copy of the judgment. I make it clear that this Court has not expressed anything on the merits ofthe application. The writ petition is ordered accordingly. SD/- C.S.DIAS, JUDGE WP(C) NO. 17640 OF 2023 APPENDIX OF WP(C) 17640/2023 PETITIONER EXHIBITS Exhibit P1TRUE COPY OF THE PANCHNAMA DATED 23.03.202023.03.2020 Exhibit P2TRUE COPY OF ORDER DATED 05.03.2021 IN WRIT PETITION NO. 5737 OF 2021.WRIT PETITION NO. 5737 OF 2021. Exhibit P3TRUE COPY OF ACKNOWLEDGMENT DATED 22.03.2021 OF RECEIPT OF SETTLEMENT APPLICATION FILED BY THE PETITIONER BEFORE THE INCOME TAX SETTLEMENT COMMISSION.22.03.2021 OF RECEIPT OF SETTLEMENT APPLICATION FILED BY THE PETITIONER BEFORE THE INCOME TAX SETTLEMENT COMMISSION. Exhibit P4TRUE COPY OF THE INTIMATION IN FORM NO.34BA FILED BEFORE THE 1ST RESPONDENT ON 22.03.2021NO.34BA FILED BEFORE THE 1ST RESPONDENT ON 22.03.2021 Exhibit P5TRUE COPY OF NOTIFICATION NO.F.NO.299/22/2021 DATED 28.9.2021- DIRECTOR(INV .III)/174.NO.F.NO.299/22/2021 DATED 28.9.2021- DIRECTOR(INV .III)/174. Exhibit P6TRUE COPY OF NOTIFICATION NO.10/2021 DATED 27.2.2021 ISSUED BY THE 2ND RESPONDENT.DATED 27.2.2021 ISSUED BY THE 2ND RESPONDENT. Exhibit P7 TRUE COPY OF RULE 9 REPORT FILED BY THE PRINCIPAL COMMISSIONER OF INCOME TAX CENTRAL CIRCLE.PRINCIPAL COMMISSIONER OF INCOME TAX CENTRAL CIRCLE. Exhibit P8TRUE COPY OF THE REPLY FILED BY THE PETITIONER DATED 09.07.2022 TO RULE 9A REPORT.PETITIONER DATED 09.07.2022 TO RULE 9A REPORT. Exhibit P9TRUE COPY OF POSTING NOTICE ISSUED BY THE 3RD RESPONDENTTHE 3RD RESPONDENT