POOVATTOOR EAST SERVICE CO-OPERATIVE BANK LTD. NO. 3503 vs. THE INCOME TAX OFFICER WARD 2

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WP(C)/8777/2019HC KeralaKLHC01022310201922 March 2019Author: HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the petitioner to file a stay application before the 2nd respondent (Commissioner of Income Tax (Appeals)) within one week. The 2nd respondent was directed to dispose of the stay application within six weeks of its filing. Until the stay application is disposed of, recovery proceedings pursuant to the impugned assessment order were to be kept in abeyance. The Court did not decide the merits of the assessment order or the stay application itself, but rather provided a procedural direction for its expeditious consideration. The ratio is that when an appeal is pending and a stay application is filed, the appellate authority should dispose of the stay application expeditiously, and recovery should be deferred until then.

What were the facts?

The petitioner, Poovattoor East Service Co-operative Bank Ltd., challenged an assessment order (Ext.P2) under the Income Tax Act by filing an appeal before the 2nd respondent, the Commissioner of Income Tax (Appeals). The petitioner did not file a stay application along with the appeal. Apprehending recovery proceedings, the petitioner approached the High Court of Kerala.

What were the issues?

1. Whether the petitioner is entitled to a direction for the disposal of their stay application pending before the Commissioner of Income Tax (Appeals)? Assessee's Contention: The petitioner, having filed an appeal against the assessment order, is apprehending recovery and seeks a direction for the expeditious disposal of their stay application. The petitioner relies on the general principle of allowing a party to pursue their remedies before the appellate authority. Revenue's Contention: No specific contention is recorded for the revenue in the judgment. The judgment does not mention any arguments presented by the respondent revenue authorities.

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. 8777 of 2019 PETITIONER/S: POOVATTOOR EAST SERVICE CO-OPERATIVE BANK LTD. NO. 3503 KALAYAPURAM, KOTTARAKKARA, KOLLAM-691560 REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.M.SASINDRAN SRI.S.SHYAM KUMAR RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 2 AAYAKAR BHAVAN, INCOME TAX OFFICE, NEAR KARBALA JUNCTION, RAILWAY STATION ROAD, KOLLAM-691 001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM- 695 003. OTHER PRESENT: THUSHARA JAMES GP 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. 8777 of 2019

JUDGMENT The petitioner, challenging Ext.P2 assessment order under the Income Tax Act, filed an appeal before the 2nd respondent. It is stated that the petitioner has not moved any stay application along with the appeal. Apprehending recovery, the petitioner has approached this Court.

2.

In view of the above, the petitioner is directed to move a stay application before the 2nd respondent in one week. The 2nd respondent is directed to dispose of the the stay application to be filed by the petitioner, in six weeks thereafter. 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

-3- W.P.(C). No. 8777 of 2019 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE CERTIFICATE OF CLASSIFICATION DATED 30.11.2018 ISSUED BY THE ASSISTANT REGISTRAR (GENERAL) OF CO-OPERATIVE SOCIETIES, KOTTARAKKARA. EXHIBIT P2 AOF THE ASSESSMENT ORDER DATED 27.12.2018. EXHIBIT P3 AOF THE DEMAND NOTICE DATED 27.12.2018. EXHIBIT P4 AOF THE APPEAL MEMORANDUM FILED BEFORE TEH 2ND RESPONDENT. EXHIBIT P5 AOF THE NOTICE UNDER SECTION 226(3) OF THE INCOME TAX ACT DEMANDING THE PETITIONER TO PAY A SUM OF RS.4,90,000/-. EXHIBIT P6 AOF THE JUDGEMENT DATED 21.12.2017 IN WPC 38566 OF 2017.

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