KARUVANNUR SERVICE CO-OPERATIVE BANK LIMITED, vs. INCOME TAX OFFICER, WARD 2(2),

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WP(C)/10293/2024HC KeralaKLHC01091440202414 March 2024Author: HONOURABLE MR. JUSTICE GOPINATH P.4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition by directing the 2nd respondent (Commissioner of Income Tax (Appeals)) to consider and pass orders on the applications for condonation of delay (Exts.P3 and P3(a)) and stay applications (Exts.P4 and P4(a)) within three months from the date of receiving a certified copy of the judgment. The Court ordered that recovery proceedings pursuant to the assessment orders (Exts.P1 and P1(a)) shall remain suspended until orders are passed on these applications. It was clarified that the appellate authority would need to pass orders on the stay applications (Exts.P4 and P4(a)) on merits only if the delay in filing the appeals (Exts.P2 and P2(a)) is condoned. The Court did not decide on the merits of the appeals or the delay condonation applications themselves.

What were the facts?

The petitioner, Karuvannur Service Co-operative Bank Limited, is challenging assessment orders (Ext.P1 and Ext.P1(a)) for assessment year 2009-10. The petitioner filed appeals (Exts.P2 and P2(a)) against these orders, along with applications for condonation of delay (Exts.P3 and P3(a)) and stay applications (Exts.P4 and P4(a)). The petitioner sought a direction to keep recovery proceedings pursuant to the assessment orders in abeyance until orders were passed on the delay condonation and stay applications. The respondent department pointed out an inordinate delay of 957 days in filing the appeals.

What were the issues?

1. Whether the petitioner is entitled to relief in a writ petition when there is an inordinate delay of 957 days in filing the appeals against the assessment orders, as per the Income Tax Act, 1961. Assessee's Contention: The petitioner sought a direction to keep recovery proceedings in abeyance pending the disposal of their applications for condonation of delay and stay. Revenue's Contention: The respondent department argued that due to the inordinate delay of 957 days, the petitioner is not entitled to any relief in the writ petition.

Which sections of the Income-tax Act were involved?

Income Tax Act, 1961

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 GOPINATH P. THURSDAY, THE 14TH DAY OF MARCH 2024 / 24TH PHALGUNA, 1945 WP(C) NO. 10293 OF 2024 PETITIONER: KARUVANNUR SERVICE CO-OPERATIVE BANK LIMITED, KARUVANNUR P.O, THRISSUR, REPRESENTED BY ITS SECRETARY- IN-CHARGE SRI. RAJESH K.R., PIN – 680 711. BY ADVS. K.S.HARIHARAN NAIR G.REMADEVI HARIMA HARIHARAN RAJATH R NATH DHEERAJ SASIDHARAN SREE HARIDEV RESPONDENTS: 1 INCOME TAX OFFICER, WARD 2(2), AAYAKAR BHAVAN, INCOME TAX OFFICE, SHAKTHAN THAMPURAN NAGAR, THRISSUR, PIN – 680 001. 2 COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, NEW DELHI, PIN – 110 001. SRI P. R. AJITH KUMAR, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 10293 OF 2024 2

JUDGMENT The petitioner suffered Ext.P1 order of assessment under the Income Tax Act, 1961 for the assessment year 2009-10. Ext.P1(a) is an order rectifying the assessment for the same assessment year. The petitioner has filed Exts.P2 and P2(a) appeals against Exts.P1 and P1(a) orders together with Exts.P3 and P3(a) applications for condonation of delay and Exts.P4 and P4(a) applications for stay. The petitioner prays that till orders are passed on Exts.P3, P3(a), P4 and P4(a) applications, recovery proceedings pursuant to Exts.P1 and P1(a) may be kept in abeyance.

2.

The learned Standing Counsel appearing for the respondent Department points out that there is inordinate delay of 957 days in filing the appeals. It is submitted that in such circumstances, the petitioner is not entitled to any relief in this writ petition. Having heard the learned counsel for the petitioner and the learned Standing Counsel appearing for the respondent Department and having regard to the limited nature of relief sought for by the petitioner, this writ petition will stand

WP(C) NO. 10293 OF 2024 3 disposed of directing the 2nd respondent to consider and pass orders on Exts.P3 and P3(a) applications for condonation of delay and also on Exts.P4 and P4(a) applications for stay, within a period of three months from the date of receipt of a certified copy of this judgment. Till such time as orders are passed on Exts.P3, P3(a), P4 and P4(a) applications, any proceedings for recovery of amounts due under Exts.P1 and P1(a) orders shall remain suspended. It is made clear that the appellate authority needs to pass orders on Exts.P4 and P4(a) applications for stay on merits only if it decides to condone the delay in filing Exts.P2 and P2(a) appeals. GOPINATH P. JUDGE DK

WP(C) NO. 10293 OF 2024 4

Appendix — schedule of exhibits
APPENDIX OF WP(C) 10293/2024 PETITIONER EXHIBITS Exhibit P1 COPY OF ASSESSMENT ORDER DATED 07-12- 2016 ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2009-10 Exhibit P1(a) COPY OF RECTIFICATION ORDER DATED 03- 01-2019 ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2009-10 Exhibit P2 COPY OF APPEAL MEMORANDUM DATED 06- 12-2023 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT AGAINST EXT.P1. Exhibit P2(a) COPY OF APPEAL MEMORANDUM DATED 06- 12-2023 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT AGAINST EXT.P1(A). Exhibit P3 COPY OF THE DELAY CONDONATION PETITION DATED 06-12-2023 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT IN EXT. P2 APPEAL Exhibit P3(a) COPY OF THE DELAY CONDONATION PETITION DATED 06-12-2023 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT IN EXT. P2(A) APPEAL Exhibit P4 COPY OF THE STAY PETITION DATED 06- 12-2023 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT IN EXT. P2 APPEAL Exhibit P4(a) COPY OF THE STAY PETITION DATED 06- 12-2023 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT IN EXT. P2(A) APPEAL

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