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

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WP(C)/13360/2019HC KeralaKLHC01033259201910 May 2019Author: HONOURABLE MRS. JUSTICE ANU SIVARAMAN4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the appeal preferred by the petitioner institution is liable to be considered and disposed of on merits before proceeding with the recovery of amounts in terms of the orders passed by the assessment authority. The Court directed the 2nd respondent, the Commissioner of Income Tax (Appeals), to take up, consider, and pass appropriate orders on Exhibit P2 appeal at the earliest, at any rate, within three months from the date of receipt of a copy of the judgment. Until orders are passed on the appeal, coercive proceedings based on the original assessment order are to be kept in abeyance. The principle is that statutory appeals should be heard and decided before recovery is enforced, to prevent prejudice to the assessee.

What were the facts?

The petitioner, The Nagaripuram Service Co-operative Bank Ltd., a primary credit society, received an assessment order under the Income Tax Act. Aggrieved by this order, the petitioner filed a statutory appeal (Exhibit P2) before the 2nd respondent, the Commissioner of Income Tax (Appeals), and a stay petition (Exhibit P3). Despite the pending appeal, demands were being raised based on the assessment order. The petitioner approached the High Court of Kerala seeking a direction for the disposal of their appeal before coercive recovery actions are taken.

What were the issues?

1. Whether the recovery proceedings can be initiated based on the assessment order when a statutory appeal is pending before the appellate authority? (Question of law) Assessee's Contention: The petitioner argued that demands were being raised in terms of the assessment orders despite the pendency of their statutory appeal before the appellate authority. They sought a direction to dispose of the appeal before proceeding with recovery. Revenue's Contention: The judgment does not record any specific contentions made by the revenue. However, the presence of the Income Tax Officer and the Commissioner of Income Tax (Appeals) as respondents indicates their role in the assessment and appellate process.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
WP(C).13360/19 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MRS. JUSTICE ANU SIVARAMAN FRIDAY, THE 10TH DAY OF MAY 2019 / 20TH VAISAKHA, 1941 WP(C).No. 13360 of 2019 PETITIONER/S: THE NAGARIPURAM SERVICE CO-OPERATIVE BANK LTD., NAGARIPURAM, MANNUR, PALAKKAD-678642, REPRESENTED BY ITS SECRETARY, ANUP G.M, AGED 43, S/O. K.P.GOPINATHA MENON. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD 2, AYAKAR BHAVAN, PALAKKAD-678014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) SAKTHAN NAGAR, THRISSUR-680021. OTHER PRESENT: SRI MOHAMMED RAFIQ-GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10.05.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).13360/19 2 ANU SIVARAMAN, J. ----------------------------------------------- W.P(C).No. 13360 of 2019 ----------------------------------------------- Dated this the 10th day of May, 2019

JUDGMENT Petitioner is a primary credit society which has been issued with assessment order under the Income Tax Act. Being aggrieved by the assessment order, the petitioner has preferred statutory appeal, Exhibit P2, before the 2nd respondent appellate authority under the Income Tax Act. The petitioner has also preferred Exhibit P3 stay petition in the appeal. However, it is contended that demands are being raised in terms of the assessment orders.

2.

Having heard the learned counsel for the petitioner as well as the learned standing counsel appearing for the respondents, I am of the opinion that the appeal preferred by the petitioner institution is liable to be considered and disposed of on merits before proceeding with the recovery of amounts in terms of the orders passed by the assessment authority. In the above view of the matter, there will be a direction to the 2nd respondent appellate authority to take up consider and pass appropriate orders on Exhibit P2 appeal preferred by the petitioner and to dispose of the same in accordance with law at the earliest, at any rate, within three months from the date of receipt of a copy of this judgment. Till orders are passed on the appeal, as directed above, coercive proceedings on the basis of the original order shall be kept in abeyance. Writ petition is ordered accordingly. ANU SIVARAMAN JUDGE vgs10/5

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2014-15 DATED 20.12.2016. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2014-15 DATED 12.01.2017 EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2014-15 DATED 18.04.2019.

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