MUDAVANMUGHAL SERVICE CO-OPERATIVE BANK LIMITED, vs. THE INCOME TAX OFFICER,

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WP(C)/13820/2019HC KeralaKLHC01034241201917 May 2019Author: HONOURABLE MR. JUSTICE RAJA VIJAYARAGHAVAN V3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the 2nd respondent (Commissioner of Income Tax (Appeals)-1) to pass orders on the stay petition (Exhibit-P5) expeditiously, within a period of two months from the date of production of a copy of the judgment. Until such time, recovery proceedings pursuant to the impugned assessment order were to be kept in abeyance. The Court did not decide on the merits of the assessment order itself, but rather on the procedural aspect of allowing the stay petition to be considered before recovery is pursued. The ratio is that recovery proceedings should be stayed pending the disposal of a stay application filed along with an appeal, to ensure that the appeal is not rendered infructuous.

What were the facts?

The petitioner, Mudavanmughal Service Co-operative Bank Limited, challenged an assessment order (Exhibit-P2) by filing an appeal and an application for stay of proceedings (Exhibits-P4 and P5) before the Commissioner of Income Tax (Appeals)-1. The petitioner's grievance was that recovery proceedings were being initiated without considering the merits of their challenge. The case came before the High Court of Kerala at Ernakulam.

What were the issues?

1. Whether recovery proceedings can be initiated without considering the merits of the challenge raised by the assessee in their appeal and stay petition? (Question of procedure and fairness) Assessee's Contention: The petitioner argued that recovery proceedings were being initiated prematurely, without affording them an opportunity to have their appeal and stay petition considered on merits. They sought a direction to stay recovery proceedings until their application for stay is decided. Revenue's Contention: The judgment records that the learned Standing Counsel appeared for the respondents, but it does not detail any specific arguments made by the revenue regarding the stay petition or recovery proceedings.

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 RAJA VIJAYARAGHAVAN V FRIDAY, THE 17TH DAY OF MAY 2019 / 27TH VAISAKHA, 1941 WP(C). No.13820 of 2019 PETITIONER: MUDAVANMUGHAL SERVICE CO-OPERATIVE BANK LIMITED, NO.T 847, REPRESENTED BY ITS SECRETARY V.G.MAHILA, S/O.JAYAKUMARAN NAIR, POOJAPPURA P.O., THIRUVANANTHAPURAM DISTRICT, KERALA, PIN - 695 012. BY ADVS. SRI.C.A.JOJO SRI.JACOB CHACKO SRI.MATHEWS JOSEPH RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD-2(1) KOWDIAR, TRIVANDRUM- 695 003. 2 COMMISSIONER OF INCOME TAX (APPEALS)-1, OFFICE OF THE COMMISSIONER OF INCOME TAX (APPEALS), TRIVANDRUM - 695 003. BY ADV.SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.05.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 13820 of 2019 2

JUDGMENT Challenging Exhibit-P2 assessment order, the petitioner herein has preferred an appeal along with an application for stay of proceedings as is evident from Exhibits-P4 and P5. The grievance of the petitioner is that recovery proceedings are being initiated without considering the merits of the challenge that they had raised.

2.

Heard the learned counsel appearing for the petitioner and the learned Standing Counsel appearing for the respondents.

3.

Having considered the facts and circumstances and the submissions made across the bar, there shall be a direction to the 2nd respondent to pass orders on Exhibit-P5 stay petition, expeditiously, at any rate, within a period of two months from the date of production of a copy of this judgment. Till such time, recovery proceedings pursuant to the impugned order in the appeal shall be kept in abeyance. The Writ Petition is disposed of as above. RAJA VIJAYARAGHAVAN V., IAP JUDGE

WP(C).No. 13820 of 2019 3 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 A COPY OF THE CERTIFICATE ISSUED BY THE ASST. REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL) THIRUVANANTHAPURM DATED 07/11/2017. EXHIBIT P2 AOF THE ASSESSMENT ORDER DATED 17/11/2017 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 AOF THE DEMAND NOTICE DATED 17/11/2017 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P4 AOF THE APPEAL FOR AY 2011-12 DATED 09/07/2018 FILED BEFORE THE 2ND RESPONDENT. EXHIBIT P5 AOF THE STAY PETITION FOR AY 2011- 12 DATED 06/05/2019 BEFORE THE 1ST RESPONDENT. EXHIBIT P6 AOF THE DEMAND NOTICE DATED 03/05/2019 ISSUED BY THE FIRST RESPONDENT. RESPONDENT'S EXHIBITS : NIL //// PA TO JUDGE

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