2022 (5) TMI 417 - HC - Income Tax

Stay petition - recovery proceedings - relief claimed by the petitioner is for a direction to consider the stay petition in a time bound manner - HELD THAT - Having regard to the fact that the stay petition cannot be uploaded in pending appeals as per the present Faceless Appeal regime, the assessees are put to great difficulty. Obviously it was in such circumstances that petitioner has preferred Ext.P5 stay petition to the Commissioner of Income Tax (Appeals), Kozhikode, though addressed to the National Faceless Appeal Centre. In few similar cases, this Court had directed the Faceless Appeal Centre of the Income Tax Department to provide links to appellants to upload the stay petitions in pending appeals and had even observed that, absence of such uploading facility in pending appeals is prejudicial to the principles of Rule of Law. Since the petitioner is also faced with a similar difficulty, it is necessary that despite Ext.P5 stay petition having been preferred before the Commissioner of Income Tax (Appeals), Kozhikode, the petitioner be granted an opportunity to file a stay petition in a time bound manner, in the pending appeal before the 3 rd respondent. Accordingly, there will be a direction to the 3rd respondent to provide a link to upload the stay petition in the pending appeal within a period of one month from the date of receipt of a copy of this judgment. If the petitioner uploads the stay petition within two weeks from the date of receipt of the link to upload the stay petition, the 3rd respondent shall consider the said stay petition, as expeditiously as possible, at any rate, within a period of four weeks from the date of uploading of the stay petition and after hearing the petitioner

Summary

Issues:
Challenge to assessment order under Income Tax Act, 1961 for the assessment year 2017-18. Delay in considering stay petition due to Faceless Appeal regime.

Analysis:
The petitioner challenged the assessment order under the Income Tax Act, 1961 for the assessment year 2017-18 by filing an appeal. However, due to the Faceless Appeal regime, the stay petition could not be uploaded in pending appeals, causing difficulty for the assessees. The petitioner filed a stay petition before the Commissioner of Income Tax (Appeals), Kozhikode, even though it should have been addressed to the National Faceless Appeal Centre. The court noted that in similar cases, the Faceless Appeal Centre was directed to provide links to upload stay petitions in pending appeals, emphasizing the importance of the Rule of Law. Given the petitioner's predicament, the court directed the 3rd respondent to provide a link for uploading the stay petition within a month. If the petitioner uploads the stay petition within two weeks of receiving the link, the 3rd respondent must consider it expeditiously, within four weeks of uploading and after hearing the petitioner. Coercive proceedings against the petitioner related to the assessment order shall be stayed until a decision is made on the stay petition.

This judgment addresses the challenge faced by the petitioner in the context of the Faceless Appeal regime under the Income Tax Act, 1961. The court recognized the difficulty caused by the inability to upload stay petitions in pending appeals and emphasized the need to uphold the principles of the Rule of Law. By directing the 3rd respondent to provide a link for uploading the stay petition and setting a timeline for consideration, the court ensured that the petitioner's rights are protected and coercive actions related to the assessment order are halted pending a decision on the stay petition. The judgment reflects a balanced approach to addressing procedural challenges within the framework of tax assessment appeals, ensuring fairness and efficiency in the process.