Wp(C)/40710/2023 Of Covenant Stones Private Limited v. Commissioner Of Income Tax (Appeals)

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH TUESDAY, THE 19 DAY OF DECEMBER 2023 / 28TH AGRAHAYANA, 1945WP(C) NO. 40710 OF 2023 PETITIONER/S: COVENANT STONES PRIVATE LIMITEDHAVING ITS REGISTERED OFFICE AT SHOP NO. 237(416B), MUKHOLA, VATTIYURKAVU, NETTAYAM P.O, THIRUVANANTHAPURAM, REPRESENTED BY ITS DIRECTOR, SRI. K.C. RAMACHANDRAN, PIN - 695013 BY ADVS.ANIL XAVIERGEORGE G.POOTHICOTEANN MARY.V.I RESPONDENT/S: 1COMMISSIONER OF INCOME TAX (APPEALS) CENTRAL CIRCLE, COCHIN, POORNIMA BUILDING, MANORAMA JUNCTION, PANAMPILLY NAGAR, COCHIN, PIN - 682036 2COMMISSIONER OF INCOME TAX (APPEALS)-3 4TH FLOOR, CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, COCHIN, PIN - 682018COCHIN, PIN - 682018 3ASSISTANT COMMISSIONER OF INCOME TAXCENTRAL CIRCLE, INCOME TAX OFFICE, PUBLIC LIBRARY BUILDING, SHASTRI ROAD, KOTTAYAM, PIN - 686001CENTRAL CIRCLE, INCOME TAX OFFICE, PUBLIC LIBRARY BUILDING, SHASTRI ROAD, KOTTAYAM, PIN - 686001 OTHER PRESENT: SUSIE B. VARGHESE-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 40710 OF 2023 JUDGMENT Dated this the 19[th] day of December, 2023 The present writ petition has been filed impugning Ext.P5 orderpassed by the 2[nd] respondent. The 2[nd] respondent has given aconditional stay order in Ext.P5 after considering the facts andcircumstances of the case and taking into account the onlinesubmissions advanced on behalf of the petitioner. 2.The petitioner has been directed to pay of 20% of the total taxdemand raised vide the assessment orders for the assessment years2014-2015, 2015-2016, 2016-2017, 2017-2018 and 2019-2020. Not onlythe conditional stay on payment of 20% has been granted but thepetitioner has also been given facility of payment of 20% in seven equalinstallments. The said 20% amount is directed to be paid on or before25.03.2024. The first installment has been directed to be paid on orbefore 25.09.2023. The petitioner instead of complying the saidconditional stay order has approached this court, impugning the verysame conditional stay order in Ext.P5. 3.Learned counsel for the petitioner submits that the 2[nd]respondent has not considered the merit of the case and following thecircular, has passed the order. 4.This court therefore asked the learned counsel for the petitionerto make submissions on the merit of the case. 5.The learned counsel for the petitioner has submitted that theassessment orders after survey under Section 133A of the Income Tax Act had been finalized merely on the basis of the statements of theDirector and Managing Director who had retracted later on. Thissubmission does not appear to be correct. The assessment order woulddisclose that not only the statements of the Director and ManagingDirector were taken into consideration but the other incriminatingmaterial including the excel sheets and digital datas maintained in thecomputers and laptops had also been examined before adding theundisclosed income to the returned income of the petitioner. Therefore,I do not find much substance in the present writ petition that the meritof the assessment orders have not been considered while passing theimpugned Ext.P5 order granting conditional stay. In that view of the matter, the present writ petition is dismissed.The petitioner was granted time to pay the first instalment on or before25.09.2023, the said time is extended to 30.12.2023 and the last andfinal installment has to be paid on or before 30.06.2024. Needless tosay that the observation made herein will not prejudice the appellateauthority to consider the case of the petitioner on merit. The writ petition is dismissed accordingly. Sd/- DINESH KUMAR SINGH JUDGE APPENDIX OF WP(C) 40710/2023 PETITIONER EXHIBITS In that view of the matter, the present writ petition is dismissed.The petitioner was granted time to pay the first instalment on or before25.09.2023, the said time is extended to 30.12.2023 and the last andfinal installment has to be paid on or before 30.06.2024. Needless tosay that the observation made herein will not prejudice the appellateauthority to consider the case of the petitioner on merit. The writ petition is dismissed accordingly. Sd/- DINESH KUMAR SINGH JUDGE APPENDIX OF WP(C) 40710/2023 PETITIONER EXHIBITS Exhibit P1TRUE COPY OF THE ASSESSMENT ORDER DATED 30/09/2021 FOR AY 2014-15 ISSUED BY THE 2ND RESPONDENT, ASSESSING OFFICER30/09/2021 FOR AY 2014-15 ISSUED BY THE 2ND RESPONDENT, ASSESSING OFFICERExhibit P1(a)TRUE COPY OF THE ASSESSMENT ORDER DATED 07/12/2021 FOR AY 2015-16 ISSUED BY THE 2ND RESPONDENT, ASSESSING OFFICER07/12/2021 FOR AY 2015-16 ISSUED BY THE 2ND RESPONDENT, ASSESSING OFFICERExhibit P1(b)TRUE COPY OF THE ASSESSMENT ORDER DATED 30/09/2021 FOR AY 2016-17 ISSUED BY THE 2ND RESPONDENT, ASSESSING OFFICER30/09/2021 FOR AY 2016-17 ISSUED BY THE 2ND RESPONDENT, ASSESSING OFFICERExhibit P1(c)TRUE COPY OF THE ASSESSMENT ORDER DATED 16/11/2021 FOR AY 2017-18 ISSUED BY THE 2ND RESPONDENT, ASSESSING OFFICER16/11/2021 FOR AY 2017-18 ISSUED BY THE 2ND RESPONDENT, ASSESSING OFFICERExhibit P1(d)TRUE COPY OF THE ASSESSMENT ORDER DATED 30/09/2021 FOR AY 2018-19 ISSUED BY THE 2ND RESPONDENT, ASSESSING OFFICER30/09/2021 FOR AY 2018-19 ISSUED BY THE 2ND RESPONDENT, ASSESSING OFFICER Exhibit P1(e)TRUE COPY OF THE ASSESSMENT ORDER DATED 30/09/2021 FOR AY 2019-20, ISSUED BY THE 2ND RESPONDENT, ASSESSING OFFICER30/09/2021 FOR AY 2019-20, ISSUED BY THE 2ND RESPONDENT, ASSESSING OFFICER Exhibit P2TRUE COPY OF THE ATTACHMENT ORDER DATED 16/08/2022 FOR RECOVERY OF AMOUNT, ISSUEDBY THE 3RD RESPONDENT, ASSESSING OFFICER16/08/2022 FOR RECOVERY OF AMOUNT, ISSUEDBY THE 3RD RESPONDENT, ASSESSING OFFICER Exhibit P3TRUE COPY OF THE CBDT INSTRUCTION NO. 1914 DATED 02/12/19931914 DATED 02/12/1993 Exhibit P4TRUE COPY OF THE JUDGMENT DATED 21/12/2022 OF THE HIGH COURT OF KERALA INWP(C) NO. 38390/202221/12/2022 OF THE HIGH COURT OF KERALA INWP(C) NO. 38390/2022 Exhibit P5TRUE COPY OF THE ORDER ON STAY PETITION DATED 13/09/2023 BY THE 2ND RESPONDENTDATED 13/09/2023 BY THE 2ND RESPONDENTExhibit P6TRUE COPY OF THE NOTICE OF DEMAND DATED 22/09/2023 OF THE 3RD RESPONDENT22/09/2023 OF THE 3RD RESPONDENT Exhibit P7TRUE COPY OF THE NOTICE DATED 18/04/2023 ISSUED IN THE APPEALS FOR THE ASSESSMENT YEAR 2014-15, ISSUED BY THE 2ND RESPONDENTISSUED IN THE APPEALS FOR THE ASSESSMENT YEAR 2014-15, ISSUED BY THE 2ND RESPONDENT Exhibit P7(a)TRUE COPY OF THE NOTICE DATED 18/04/2023 ISSUED IN THE APPEALS FOR THE ASSESSMENT YEAR 2015-16, ISSUED BY THE 2ND RESPONDENTISSUED IN THE APPEALS FOR THE ASSESSMENT YEAR 2015-16, ISSUED BY THE 2ND RESPONDENT Exhibit P7(b)TRUE COPY OF THE NOTICE DATED 18/04/2023 ISSUED IN THE APPEALS FOR THE ASSESSMENT YEAR 2016-17, ISSUED BY THE 2ND RESPONDENTISSUED IN THE APPEALS FOR THE ASSESSMENT YEAR 2016-17, ISSUED BY THE 2ND RESPONDENT WP(C) NO. 40710 OF 2023 5 Exhibit P7(c) TRUE COPY OF THE NOTICE DATED 18/04/2023 ISSUED IN THE APPEALS FOR THE ASSESSMENT YEAR 2017-18, ISSUED BY THE 2ND RESPONDENT Exhibit P7(d)TRUE COPY OF THE NOTICE DATED 18/04/2023 ISSUED IN THE APPEALS FOR THE ASSESSMENT YEAR 2018-19 ISSUED BY THE 2ND RESPONDENTExhibit P7(e)TRUE COPY OF THE NOTICE DATED 18/04/2023 ISSUED IN THE APPEALS FOR THE ASSESSMENT YEAR 2019-20, ISSUED BY THE 2ND RESPONDENT Exhibit P8 TRUE COPY OF THE APPEAL NOTE FILED BY THEPETITIONER IN THE APPEALS FOR THE ASSESSMENT YEAR 2014-15 Exhibit P8(a) TRUE COPY OF THE APPEAL NOTE FILED BY THEPETITIONER IN THE APPEALS FOR THE ASSESSMENT YEAR 2015-16 Exhibit P8(b) TRUE COPY OF THE APPEAL NOTE FILED BY THEPETITIONER IN THE APPEALS FOR THE ASSESSMENT YEAR 2016-17 Exhibit P8(c) TRUE COPY OF THE APPEAL NOTE FILED BY THEPETITIONER IN THE APPEALS FOR THE ASSESSMENT YEAR 2017-18 ISSUED IN THE APPEALS FOR THE ASSESSMENT YEAR 2017-18, ISSUED BY THE 2ND RESPONDENT Exhibit P7(d)TRUE COPY OF THE NOTICE DATED 18/04/2023 ISSUED IN THE APPEALS FOR THE ASSESSMENT YEAR 2018-19 ISSUED BY THE 2ND RESPONDENTExhibit P7(e)TRUE COPY OF THE NOTICE DATED 18/04/2023 ISSUED IN THE APPEALS FOR THE ASSESSMENT YEAR 2019-20, ISSUED BY THE 2ND RESPONDENT Exhibit P8 TRUE COPY OF THE APPEAL NOTE FILED BY THEPETITIONER IN THE APPEALS FOR THE ASSESSMENT YEAR 2014-15 Exhibit P8(a) TRUE COPY OF THE APPEAL NOTE FILED BY THEPETITIONER IN THE APPEALS FOR THE ASSESSMENT YEAR 2015-16 Exhibit P8(b) TRUE COPY OF THE APPEAL NOTE FILED BY THEPETITIONER IN THE APPEALS FOR THE ASSESSMENT YEAR 2016-17 Exhibit P8(c) TRUE COPY OF THE APPEAL NOTE FILED BY THEPETITIONER IN THE APPEALS FOR THE ASSESSMENT YEAR 2017-18 Exhibit P8(d)TRUE COPY OF THE APPEAL NOTE FILED BY THEPETITIONER IN THE APPEALS FOR THE ASSESSMENT YEAR 2018-19 Exhibit P8(e)TRUE COPY OF THE APPEAL NOTE FILED BY THEPETITIONER IN THE APPEALS FOR THE ASSESSMENT YEAR 2019-20