VENJARAMOOD SERVICE CO-OPERATIVE BANK LTD vs. THE INCOME TAX OFFICER,

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WP(C)/13647/2019HC KeralaKLHC01033768201914 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)) to pass orders on the stay petition (Ext.P7) expeditiously, within two months of receiving a copy of the judgment. Until the stay petition is decided, recovery proceedings pursuant to the impugned assessment order are to be kept in abeyance. The Court did not decide on the merits of the assessment order itself, but focused on ensuring the appellate process is not undermined by immediate recovery actions. The ratio is that appellate remedies should not be rendered nugatory by precipitate recovery actions.

What were the facts?

The petitioner, Venjaramood Service Co-operative Bank Ltd., has challenged an assessment order (Ext.P4). The petitioner has filed an appeal against this order along with a stay petition (Ext.P7) before the Commissioner of Income Tax (Appeals), the 2nd respondent. The petitioner's grievance is that recovery proceedings are being initiated without considering the merits of their appeal. The High Court of Kerala heard submissions from both the petitioner and the revenue.

What were the issues?

1. Whether recovery proceedings can be initiated without considering the merits of a pending appeal and stay petition? (Question of procedure and fairness) The petitioner argued that recovery proceedings are being initiated prematurely, without awaiting the decision on their appeal and stay petition. They contend that this action prejudices their case and bypasses the appellate process. The revenue's contentions are not explicitly recorded 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 RAJA VIJAYARAGHAVAN V TUESDAY, THE 14TH DAY OF MAY 2019 / 24TH VAISAKHA, 1941 WP(C). No.13647 of 2019 PETITIONER: VENJARAMOOD SERVICE CO-OPERATIVE BANK LTD. NO.2419, REPRESENTED BY ITS SECRETARY, VENJARAMOODU P.O., THIRUVANANTHAPURAM DISTRICT - 695 607. BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD-2(3) OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX, RANGE-2, 1ST FLOOR, AYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM DISTRICT - 695 003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM - 695 003. BY SMT.M.M JASMINE, GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.05.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C). No.13647 of 2019 2

JUDGMENT Challenging Ext.P4 assessment order, the petitioner has preferred an appeal along with an application for stay of proceedings as is evident from Exhibits P6 and P7. The grievance of the petitioner is that recovery proceedings are being initiated without considering the merits of the challenge that they have raised.

2.

Heard the learned counsel appearing for the petitioner and the learned Government Pleader.

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 Ext.P7 stay petition as expeditiously as possible, at any rate, within within a period of two months from the 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 //// P.A. TO JUDGE

WP(C). No.13647 of 2019 3 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 AOF THE CERTIFICATE DATED 26.09.2017 ISSUED BY THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), THIRUVANANTHAPURAM. EXHIBIT P2 AOF THE JUDGMENT DATED 01.03.2018 IN WP(C) NO.6915 OF 2018. EXHIBIT P3 AOF THE JUDGMENT DATED 07.08.2018 IN W.A. NO.1405/2018. EXHIBIT P4 AOF THE RECTIFICATION ORDER UNDER SECTION 154 OF THE INCOME TAX ACT ISSUED BY THE 1ST RESPONDENT DATED 08.03.2019. EXHIBIT P5 AOF THE NOTICE DATED 25.04.2019 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P6 AOF THE ONLINE APPEAL DATED 05.05.2019 FILED AGAINST EXHIBIT P4 ORDER. EXHIBIT P7 AOF THE STAY PETITION DATED 06.05.2019 FILED IN EXHIBIT P6 APPEAL BEFORE THE 2ND RESPONDENT. EXHIBIT P8 AOF THE JUDGMENT DATED 21.02.2019 IN WP(C) NO.5070 OF 2019.

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