THE MALLAPPALLY SERVICE CO-OPERATIVE BANK LTD. vs. THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE,

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WP(C)/7547/2019HC KeralaKLHC01019154201914 March 2019Author: HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala directed the appellate authority (the 3rd respondent, Commissioner of Income Tax (Appeals)) to dispose of the stay application within two months. The Court reasoned that this would allow for a timely consideration of the petitioner's request for a stay pending the appeal. Until the stay application is disposed of, all recovery proceedings against the petitioner were ordered to be kept in abeyance. The operative direction is to expedite the disposal of the stay application and to put recovery proceedings on hold in the interim. The Court did not decide on the merits of the appeal itself, nor did it address any specific grounds of appeal or the substantive tax dispute.

What were the facts?

The petitioner, The Mallappally Service Co-operative Bank Ltd., filed an appeal before the Commissioner of Income Tax (Appeals) for the assessment year 2016-17. The bank also moved a stay application. The petitioner highlighted that the assessment for a previous assessment year had been interfered with in an appeal. Consequently, the petitioner requested that the appeal be disposed of promptly and that recovery proceedings be deferred. The High Court of Kerala considered the submissions made by the petitioner.

What were the issues?

1. Whether the appellate authority should be directed to dispose of the stay application within a specified period, considering the pendency of an appeal for the assessment year 2016-17 and the interference in the assessment of a previous year? (Question of procedure and timely disposal). Assessee's Argument: The petitioner argued that due to the interference in the assessment of a previous year, the appeal for the current assessment year should be disposed of expeditiously, and recovery proceedings should be deferred until the appeal is decided. They relied on the principle of avoiding multiplicity of proceedings and ensuring fairness. Revenue's Argument: The judgment does not record any specific arguments made by the revenue. The court's decision appears to be based on the petitioner's submissions and the general principles of administrative expediency.

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 A.MUHAMED MUSTAQUE THURSDAY ,THE 14TH DAY OF MARCH 2019 / 23RD PHALGUNA, 1940 WP(C).No. 7547 of 2019 PETITIONER: THE MALLAPPALLY SERVICE CO-OPERATIVE BANK LTD. KEEZHVAIPUR P.O.,- 689587, REPRESENTED BY ITS SECRETARY MOHANA VARMA P.K. BY ADVS. DR.K.P.PRADEEP SMT.ANJANA KANNATH SMT.NEENA ARIMBOOR SMT.T.THASMI SRI.SANAND RAMAKRISHNAN SRI.T.T.BIJU RESPONDENTS: 1 THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE, MINISTRY OF FINANCE GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI- 110001, REPRESENTED BY ITS CHAIRMAN. WP(C).No. 7547 of 2019 ..2.. 2 INCOME TAX OFFICER, WARD-5, THIRUVALLA, THIRUVALLA, VAISHNAVAM ARCADE, T.K.ROAD, THIRUVALLA, PATHANAMTHITTA- 689 101. 3 COMMISSIONER OF INCOME TAX (APPEALS), KOTTAYAM, AAYAKAR BHAVAN, PUBLIC LIBRARY BUILDING, SASTHRI ROAD, KOTTAYAM- 686 001. 4 INCOME TAX OFFICER, WARD-2, THIRUVALLA, THIRUVALLA, VAISHNAVAM ARCADE, T.K.ROAD, THIRUVALLA, PATHANAMTHITTA- 689 101. JOSE JOSEPH SC IT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.03.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 7547 of 2019 ..3..

JUDGMENT The petitioner is the Co-operative Bank. Petitioner for the assessment year 2016-17 under the Income Tax Act filed an appeal before the 3rd respondent. Petitioner also moved a stay application. Petitioner refers to an order passed in an appeal in regard to the previous assessment year and submits that assessment has been interfered in that appeal. Therefore, it is submitted that the appeal may be directed to be disposed of and recovery proceedings ordered to be deferred.

2.

I am of the view that the appellate authority after adverting to the earlier order passed in an appeal shall dispose the stay application within two months. Till then the recovery proceedings shall be kept in ..4.. abeyance. The Writ Petition is disposed as above. A.MUHAMED MUSTAQUE JUDGE PR/14.03.2019 ..5.. APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER NO.AAAAT5956D DATED 20.12.2018 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER FOR THE ASSESSMENT YEAR 2016-17. EXHIBIT P2OF THE APPEAL DATED 06.02.2019 FILED BEFORE THE 3RD RESPONDENT FOR THE YEAR 2016-17 AGAINST EXT.P1 ASSESSMENT ORDER. EXHIBIT P3OF THE STAY APPLICATION DATED 06.02.2019 FILED IN EXT.P2 APPEAL FILED BEFORE THE 3RD RESPONDENT BY THE PETITIONER. EXHIBIT P4OF THE DEMAND NOTICE NO.PAN AAAAT5956D/ARREAR DEMAND/W2-/TVLA/2018-19 DATED 12.02.2019 FOR THE YEAR 2016-17 ISSUED BY THE 4TH RESPONDENT TO THE PETITIONER. EXHIBIT P5OF THE ORDER DATED 31.10.2016 IN ITA NO.279/COCH/2016 ISSUED BY THE LEARNED INCOME TAX APPELLATE TRIBUNAL, KOCHI.

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