ERAMALOOR SERVICE CO-OPERATIVE BANK LTD NO.1175 vs. INCOME TAX OFFICER

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WP(C)/31161/2023HC KeralaKLHC01068980202325 September 2023Author: HONOURABLE MR. JUSTICE D. K. SINGH5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the Commissioner of Income Tax (Appeals) to take up the petitioner's appeal expeditiously and decide it within a period of three months from the date of the order. If the appeal could not be decided within this timeframe, the Commissioner was directed to at least decide the petitioner's stay application in accordance with the law within the same three-month period. Furthermore, for a period of three months, revenue recovery proceedings were ordered to be kept in abeyance. The Court did not decide on the merits of the appeal itself, but rather on the procedural aspect of its timely disposal.

What were the facts?

The petitioner, Eramaloor Service Co-operative Bank Ltd, is a co-operative society registered under the Kerala Co-operative Societies Act, 1969, providing credit facilities. For Assessment Year 2017-18, the petitioner failed to file its income tax return. Consequently, it received a show cause notice under Section 142(1) and (2) of the Income Tax Act, 1961, which it did not respond to. A notice under Section 147 was then issued, leading to an assessment order dated December 11, 2019, under Section 144 of the Act. The Assessing Authority determined the tax liability at Rs. 10,47,388/-. The petitioner filed an appeal against this order, along with a stay application, before the Commissioner of Income Tax (Appeals). The petitioner contended that its appeal and stay application remained unconsidered, and recovery proceedings were initiated.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to expeditiously consider and decide the appeal filed by the petitioner against the assessment order dated December 11, 2019, under Section 144 of the Income Tax Act, 1961. Assessee's Contention: The petitioner argued that its appeal and stay application have not been considered by the appellate authority, and it is facing recovery proceedings for the assessed tax. Revenue's Contention: The judgment does not record any specific contentions from the Revenue regarding the delay in deciding the appeal or the stay application. The Revenue was represented by its Standing Counsel.

Which sections of the Income-tax Act were involved?

Section 142,Section 144,Section 147

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH MONDAY, THE 25TH DAY OF SEPTEMBER 2023 / 3RD ASWINA, 1945 WP(C) NO. 31161 OF 2023 PETITIONER/S: ERAMALOOR SERVICE CO-OPERATIVE BANK LTD NO.1175, ERAMALOOR, P.O CHERTALA, ALAPPUZHA REPRESENTED BY ITS SECRETARY-IN-CHARGE, PIN - 688537 BY ADVS. DIVYA RAVINDRAN C.A.JOJO RESPONDENT/S: 1 INCOME TAX OFFICERWARD-1 & TPS, ARATTUKULANGARA COMPLEX, A.N PURAM ALAPPUZHA, PIN - 688001 2 INCOME TAX OFFICERNATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI, PIN - 110001 3 THE COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI ., PIN - 110001 OTHER PRESENT: JOSE JOSEPH-SC-IT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.09.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.31161/2023 -2-

J U D G M E N T

Heard Mr C A Jojo learned Counsel for the petitioner, and Mr Jose Joseph learned Standing Counsel for the Income Tax Department.

2.

The petitioner claims to be a Co-operative Society engaged in providing credit facilities to its members. The petitioner/Society is registered under the provisions of the Kerala Co-operative Societies Act 1969. 3. The petitioner/Society did not file the return of its income for the Assessment Year 2017-18. The petitioner was issued a show cause notice under Section 142 (1) and (2) of the Income Tax Act 1961. The petitioner ignored the said show cause notice. Thereafter, the notice under Section 147 was issued and the Assessment Order dated 11.12.2019 under the provisions of Section 144 of the Income Tax Act was finalised. The Assessing Authority assessed the tax at Rs.10,47,388/-.

-3-

The petitioner filed an appeal against the Assessment Order before the 3rd respondent in Ext.P3 along with a Stay Application (Ext.P4).

4.

The learned Counsel for the petitioner submits that the stay application and the appeal have not been considered, and the petitioner is facing recovery proceedings in respect of the assessed tax.

5.

Considering the aforesaid facts, the Commissioner of Income Tax (Appeals)/3rd respondent is directed to take up

the appeal filed by the petitioner expeditiously and decide the same within a period of three months. However, if it is not possible to decide the appeal within the period of three months, at least the stay application of the petitioner should be decided in accordance with the law within the said period of three months. For a period of three months, Revenue Recovery proceedings (Ext.P5) shall be kept in abeyance.

-4-

With the aforesaid directions, the present writ petition stands finally disposed of. DINESH KUMAR SINGH JUDGE

jjj -5-

Appendix — schedule of exhibits
APPENDIX OF WP(C) 31161/2023 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 11.12.2019 ISSUED BY THE 1ST RESPONDENT Exhibit P2 A TRUE COPY OF THE DEMAND NOTICE FOR AN AMOUNT OF RS. 10,47,388/- U/S 156 DATED 11.12.2019 ISSUED BY THE 1 ST RESPONDENT Exhibit P3 A TRUE COPY OF THE APPEAL FOR AY 2017-18 BEFORE THE 3RD RESPONDENT DATED 13.01.2020 Exhibit P4 A TRUE COPY OF THE STAY PETITION FOR AY 2017-18 BEFORE THE 3RD RESPONDENT DATED 19.09.2023 Exhibit P5 THE TRUE COPY OF THE RECOVERY NOTICE ISSUED BY THE 1ST RESPONDENT DATED 05.07.2023 Exhibit P6 THE TRUE COPY OF THE JUDGMENT RENDERED BY THIS HON'BLE COURT IN W.A NO. 1535/2019 DATED 1.07.2019

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