2023 (11) TMI 1256 - HC - Income Tax

Appeal considered ex parte - Petitioner s lawyer was unable to appear - it is categorically submitted by Income Tax Department that even according to the petitioner, there are appeals filed from the order impugned in the writ petition - HELD THAT - We do not think that Article 226 of the Constitution can be invoked to consider Annexure-1 order. The appellant would be entitled to seek for an interim order in the appeal before the Tribunal or an early disposal of the appeal itself. The appellant would be granted a month s time to make the request before the learned Tribunal. We request the Tribunal to either dispose of the appeal expeditiously or consider the interim order sought for by the assessee, if the appeal cannot be disposed of within a time frame. The coercive proceeding against the assessee shall stand stayed for a period of two months from today and then it shall depend upon the orders passed by the Tribunal.

Summary

Issues Involved:
The petitioner aggrieved with Annexure-1 order passed in an appeal; Invocation of Article 226 of the Constitution for considering Annexure-1 order.

Issue 1: Petitioner aggrieved with Annexure-1 order passed in an appeal
The petitioner, represented by learned Senior Advocate Mr. Anjani Kumar, challenged the Annexure-1 order passed in an appeal. The appeal was considered ex parte as the petitioner's lawyer was unable to appear. However, it was clarified by the Senior Standing Counsel for the Income Tax Department that there are pending appeals filed from the impugned order. The High Court held that in such circumstances, Article 226 of the Constitution cannot be invoked to consider the Annexure-1 order. The appellant was directed to seek an interim order in the appeal before the Tribunal or request early disposal of the appeal itself. The appellant was granted a month's time to make the necessary request before the Tribunal.

Issue 2: Invocation of Article 226 of the Constitution for considering Annexure-1 order
The High Court emphasized that the appellant should seek relief through the appropriate appellate channels rather than invoking Article 226 of the Constitution. It was directed that the learned Tribunal should either expedite the appeal process or consider any interim relief sought by the assessee if the appeal cannot be resolved within a reasonable timeframe. The Court ordered that coercive proceedings against the assessee would be stayed for a period of two months, subject to the orders passed by the Tribunal. Ultimately, the writ petitions were disposed of without any observation on merits, highlighting the importance of following the proper appellate procedures in such matters.