THE VADAKKEVILA SERVICE COOPERATIVE BANK LTD., vs. INCOME TAX OFFICER,

WP(C)/7514/2019HC KeralaKLHC01019157201920 March 2019Author: HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala disposed of the writ petition with specific directions. It directed the petitioner (assessee) to file a stay application in its pending appeal within ten days. The Court further directed that this stay application shall be considered by the appellate authority within six weeks from its filing. Crucially, the Court ordered that recovery proceedings against the petitioner shall be kept in abeyance until the stay application is considered and reliefs are worked out. The principle established is that a taxpayer filing an appeal against an assessment order can seek a stay on recovery proceedings, and the appellate authority is directed to consider such applications expeditiously, with recovery being deferred in the interim. No specific issue regarding the merits of the assessment order was decided.

What were the facts?

The petitioner, The Vadakevila Service Cooperative Bank Ltd., is a cooperative society bank. It is aggrieved by an assessment order (Ext.P1) passed under the Income Tax Act. The bank filed an appeal (Ext.P3) against this order. The petitioner approached the High Court of Kerala apprehending recovery proceedings. The assessment year(s) are not specified. The authority that passed the assessment order is the Income Tax Officer, Ward 4. The appeal was filed before the Commissioner of Income Tax (Appeals). The amount in dispute is not stated. The procedural history involves the filing of a writ petition before the High Court seeking directions regarding the appeal and recovery.

What were the issues?

1. Whether the recovery proceedings initiated by the revenue should be kept in abeyance pending the disposal of the appeal filed by the assessee? The assessee, The Vadakevila Service Cooperative Bank Ltd., contended that it is aggrieved by the assessment order and has filed an appeal. It apprehends recovery proceedings and seeks a stay on such actions until its appeal is decided. The assessee implicitly argues for a stay of recovery proceedings to protect its financial interests during the appellate process. The revenue, represented by the Income Tax Officer and Commissioner of Income Tax (Appeals), has not recorded arguments in this judgment. The judgment does not mention any specific contentions raised by the revenue regarding the stay of recovery or the merits of the appeal.

Which sections of the Income-tax Act were involved?

None explicitly mentioned

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 WEDNESDAY,THE 20TH DAY OF MARCH 2019 / 29TH PHALGUNA, 1940 WP(C).No. 7514 of 2019 PETITIONER: THE VADAKKEVILA SERVICE COOPERATIVE BANK LTD., VADEKKEVILA P.O., KOLLAM DISTRICT, PIN - 691 010, REPRESENTED BY ITS SECRETARY LEENA , D/O.NARAYANAN SADASIVAN. BY ADVS. SRI.A.JANI(KOLLAM) SRI.G.SIVASANKAR RESPONDENTS: 1 INCOME TAX OFFICER, WARD 4, OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX, KOLLAM RANGE, AAYKAR BHAVAN, KARBALA JUNCTION, KOLLAM - 691 001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), OFFICE OF CHIEF COMMISSIONER OF INCOME TAX (APPEALS), AYANKAR BHAVAN, KAWADIYAR JUNCTION, THIRUVANANTHAPURAM - 695 003. JOSE JOSEPH-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.03.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 7514 of 2019 ..2..

JUDGMENT The petitioner is a Cooperative Society Bank, aggrieved by Ext.P1 assessment order under the Income Tax Act, filed Ext.P3 appeal. Petitioner approached this Court apprehending the recovery. Considering the above the following directions are issued:

The petitioner shall move the stay application in the appeal, that shall be done within ten days.

The application for stay if any filed, that shall be considered within further period of six weeks.

The recovery proceedings shall be kept in abeyance till the reliefs as above worked out. The Writ Petition is disposed as above. A.MUHAMED MUSTAQUE JUDGE PR/20.03.2019

WP(C).No. 7514 of 2019 ..3.. APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1OF ASSESSMENT ORDER DATED 28/12/2018 ISSUED BY FIRST RESPONDENT. EXHIBIT P2OF NOTICE DATED 28/12/2018 ISSUED BY FIRST RESPONDENT. EXHIBIT P3OF STATUTORY APPEAL BEFORE THE 2ND RESPONDENT ON 15/01/2018.

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