THE SB COLLEGE STAFF CO-OPERATIVE SOCIETY LIMITED, NO. K 356, vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/40809/2023HC KeralaKLHC01091477202307 December 2023Author: HONOURABLE MR. JUSTICE D. K. SINGH4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court held that it would not entertain parallel proceedings when an appeal against an assessment order is already pending before the first appellate authority. Therefore, there was no ground to entertain the writ petition, except for a direction to the first respondent (Commissioner of Income Tax (Appeals)) to consider and pass appropriate orders on the pending appeal expeditiously, preferably within six months. The operative direction was to dispose of the appeal within the stipulated time. No specific issue regarding the merits of the appeal or the assessment was decided.

What were the facts?

The petitioner, The SB College Staff Co-operative Society Limited, filed a writ petition before the High Court of Kerala. The petition was directed against the Commissioner of Income Tax (Appeals) and the National Faceless Appeal Centre. The petitioner sought a writ of mandamus to reconsider their appeal against an assessment order (Ext.P2) and to restrain coercive proceedings until the appeal was decided. The assessment order was passed by the National E-Assessment Centre. The appeal was pending before the first appellate authority.

What were the issues?

1. Whether the High Court should entertain a writ petition when an appeal against an assessment order is pending before the first appellate authority? (Question of law) The assessee contended that the Commissioner of Income Tax (Appeals) should reconsider their appeal based on the Supreme Court's decision in Mavilayi Service Co-operative Bank Ltd and Ors Vs. Commissioner of Income Tax and Another, and the Kerala High Court's decision in Principal Commissioner of Income Tax Vs. Peroorkada Service Co-operative Bank. The assessee also sought a stay on coercive proceedings. The revenue did not record any specific arguments in the judgment.

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 THURSDAY, THE 7TH DAY OF DECEMBER 2023 / 16TH AGRAHAYANA, 1945 WP(C) NO. 40809 OF 2023 PETITIONER/S: THE SB COLLEGE STAFF CO-OPERATIVE SOCIETY LIMITED, NO. K 356, CHENGANACHERRY, KOTTAYAM DISTRICT, PIN – 686101, REPRESENTED BY ITS SECRETARY, BY ADV O.D.SIVADAS RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) THE NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, NEW DELHI,, PIN - 110001 2 THE ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, NEW DELHI, PIN – 110001. SRI.JOSE JOSEPH, SC, FOR INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 40809 OF 2023 2

J U D G M E N T The present writ petition has been filed mainly seeking the following reliefs: “i) Issue a writ of mandamus or other appropriate writ, order or direction commanding the 1st respondent to reconsider Ext.P2 appeal on merit taking note of the dictum laid down by the Hon'ble Supreme Court in Mavilayi Service Co-operative Bank Ltd and Ors Vs. Commissioner of Income Tax and Another - 2021 (1) KHC 303 SC = 431 ITR 1 and also dictum laid down in Principal Commissioner of Income Tax Vs. Peroorkada Service Co-operative Bank [2022] 442 ITR 141 (Ker) and pass appropriate order in the appeal. ii) Issue any appropriate writ, order or direction, restraining the respondents from taking coercive proceedings against the petitioner, in pursuance to Ext.Pl assessment till orders are passed in the appeal and stay petition pending before the 1st respondent.”

This Court would not like to entertain the parallel proceedings, while the appeal against the assessment order is pending before the first appellate authority. Therefore, there is no ground

WP(C) NO. 40809 OF 2023 3 to entertain the present writ petition, except for a direction to the 1st respondent to consider and pass appropriate orders on Ext.P3 appeal against the assessment order in Ext.P1, as expeditiously as possible, preferably within a period of six months. The present writ petition stands disposed of as above. Pending interlocutory application, if any, in the present writ petition stands dismissed. DINESH KUMAR SINGH

JUDGE jg

WP(C) NO. 40809 OF 2023 4

Appendix — schedule of exhibits

APPENDIX OF WP(C) 40809/2023 PETITIONER EXHIBITS Exhibit P 1 TRUE COPY OF THE ASSESSMENT ORDER DATED 5.12.2022 ISSUED BY THE 2ND RESPONDENT FOR THE ASSESSMENT YEAR 2021-22. Exhibit P2 TRUE COPY OF THE NOTICE DATED 5.12.2022 ISSUED UNDER SEC. 156 OF INCOME TAX ACT TO THE PETITIONER FOR THE ASSESSMENT YEAR 2021-22 Exhibit P3 TRUE COPY OF THE APPEAL DATED 3.01.2023 FILED BY THE PETITIONER BEFORE THE 1ST FOR THE ASSESSMENT YEAR 2021-22 Exhibit P4 TRUE COPY OF THE STAY PETITION DATED 2.01.2023 FILED BY THE PETITIONER BEFORE THE 1ST FOR THE ASSESSMENT YEAR 2021-22

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