THE PARAVUR SERVICE CO-OPERATIVE BANK LTD. NO.1801 vs. THE INCOME TAX OFFICER

WP(C)/17762/2024HC KeralaKLHC01106036202423 May 2024Author: HONOURABLE MR. JUSTICE D. K. SINGH4 pages

AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the writ petition. The Court observed that the petitioner had filed an appeal before the Income Tax Appellate Tribunal with a significant delay of 700 days. The Court held that a litigant who has not been vigilant about their statutory rights cannot seek equitable jurisdiction under Article 226 of the Constitution of India to defer recovery of amounts due pursuant to an assessment order, especially when such a substantial delay is involved. Therefore, the Court found no grounds to interfere with the ongoing recovery proceedings and concluded that the writ petition lacked valid substance. No specific decision was made on the merits of the appeal or stay petition before the ITAT.

What were the facts?

The petitioner, The Paravur Service Co-operative Bank Ltd., filed a writ petition seeking directions to the Income Tax Appellate Tribunal (ITAT) to consider its delay condonation petition and appeal/stay petition, and to restrain the Income Tax Officer from recovering tax demand for assessment year 2017-2018 until the stay petition is disposed of. The petitioner had filed an appeal before the ITAT against an order of the Commissioner of Income Tax (Appeals) with a delay of 700 days. The High Court noted the significant delay in filing the appeal.

What were the issues?

1. Whether a writ of mandamus should be issued directing the ITAT to consider the petitioner's delay condonation petition (Ext-P5) and appeal/stay petition (Ext-P3/Ext-P4) after affording an opportunity of hearing, and within a specified time frame? 2. Whether a writ of mandamus should be issued directing the Income Tax Officer not to proceed with recovery of the demand for assessment year 2017-2018 until the stay petition and appeal are disposed of by the ITAT? Assessee's Contention: The petitioner sought directions for the ITAT to consider its pending applications and to stay recovery proceedings pending disposal of these applications. Revenue's Contention: The High Court noted that the petitioner had filed an appeal with a delay of 700 days and observed that a litigant not vigilant about statutory rights cannot seek equitable jurisdiction for deferring recovery. No specific arguments from the revenue were recorded beyond the court's observation.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH, KENDRIYA BHAVAN, BLOCK NO.C1 & C2, 1ST

ALONG WITH THE DEMAND NOTICE FOR THE ASSESSMENT YEAR 2017-2018 DATED 29-11- 2019 EXHIBIT-P2 AOF THE ORDER DATED 25-08- 2021 ISSUED BY THE FIRST APPELLATE AUTHORITY EXHIBIT-P3 AOF THE APPEAL MEMORANDUM DATED 02-11-2023, FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT TRIBUNAL EXHIBIT-P4 AOF THE STAY PETITION ALONG WITH AFFIDAVIT FILED IN EXT-P3 APPEAL, DATED 02-11-2023 EXHIBIT-P5 AOF THE AFFIDAVIT AND PETITION FOR CONDONATION OF DELAY DATED 02-11-2023 EXHIBIT-P6 AOF AFFIDAVIT DATED 01-11- 2023 FILED BY THE TAX PRACTITIONER EXHIBIT-P7 AOF THE JUDGMENT DATED 15-03- 2024 IN WP(C) NO.10742 OF 2024 OF THIS HON'BLE COURT EXHIBIT-P8 AOF THE JUDGMENT DATED 15-11- 2023 IN W.A NO.1972 OF 2023 OF THIS HON'BLE COURT

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