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

WP(C)/8796/2019HC KeralaKLHC01022234201922 March 2019Author: HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE2 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the 2nd respondent, the Commissioner of Income Tax Appeals, to take a decision on the stay application (Ext.P3) within two months. Pending the decision on the stay application, recovery proceedings initiated pursuant to the impugned assessment order were ordered to be kept in abeyance. The Court did not delve into the merits of the appeal or the assessment order itself, focusing solely on the procedural aspect of the stay application. The ratio decidendi is that appellate authorities should expeditiously decide stay applications to prevent undue hardship to assessees while their appeals are pending.

What were the facts?

The petitioner, Punukkonnoor Service Co-operative Bank Limited, challenged an assessment order issued under the Income Tax Act by filing an appeal before the Commissioner of Income Tax Appeals (2nd respondent). Along with the appeal, the petitioner also filed a stay application. The assessment order was issued by the Income Tax Officer (1st respondent). The writ petition was filed before the High Court of Kerala seeking a direction to the Commissioner of Income Tax Appeals to consider the stay application.

What were the issues?

1. Whether the 2nd respondent (Commissioner of Income Tax Appeals) should be directed to consider and decide the stay application (Ext.P3) filed by the petitioner. Assessee's Contention: The petitioner bank has filed an appeal against the assessment order and a stay application. They seek a direction for the expeditious disposal of the stay application. Revenue's Contention: No specific contentions are recorded for the revenue in the judgment. The judgment focuses on directing the appellate authority to decide the stay application.

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 FRIDAY ,THE 22ND DAY OF MARCH 2019 / 1ST CHAITHRA, 1941 WP(C).No. 8796 of 2019 PETITIONER/S: PUNUKKONNOOR SERVICE CO-OPERATIVE BANK LIMITED NO. 2722, SOCIETY JUNCTION, PERUMPUZHA KOLLAM 691 504, REPRESENTER BY ITS SECRETLY REJITHAMOL T.G. BY ADVS. SMT.S.K.DEVI SRI.SANTHOSH P.ABRAHAM RESPONDENT/S: 1 THE INCOME TAX OFFICER DEPARTMENT OF INCOME TAX, GOVERNMENT OF INDIA, WARD 2, KOLLAM 691 001. 2 THE COMMISSIONER OF INCOME TAX APPEALS DEPARTMENT OF INCOME TAX, THIRUVANANTHAPURAM 690 003. 3 THE BRANCH MANAGER, DISTRICT CO-OPERATIVE BANK, KOLLAM BRANCH, KOLLAM 691 001. OTHER PRESENT: CHRISTOPHER ABRAHAM SC IT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.03.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: -2- W.P.(C). No. 8796 of 2019

JUDGMENT The petitioner, impugning Ext.P1 assessment order under the income Tax Act, filed Ext.P2 appeal before the 2nd respondent. The petitioner also filed Ext.P3 stay application along with the appeal.

In view of the above, there shall be a direction to the 2nd respondent to take a decision on Ext.P3 stay application within two months. Till then, recovery proceedings pursuant to the impugned order in the appeal shall be kept in abeyance. The writ petition is disposed of as above. A.MUHAMED MUSTAQUE JUDGE das APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ORDER NO. ITBA/AST/S/143(3)/2018-19/1014640951 (1) DATED 28.12.2018. EXHIBIT P2OF THE APPEAL DATED 26.1.2019.

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