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

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WP(C)/8363/2019HC KeralaKLHC01021238201920 March 2019Author: HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the second respondent, the Commissioner of Income Tax (Appeals), to decide the stay application (Ext. P3) within two months from the date of the order. Pending the decision on the stay application, recovery proceedings pursuant to the impugned assessment order were to be kept in abeyance. The Court did not decide on the merits of the assessment order or the stay application itself, but rather on the procedural aspect of ensuring its timely disposal. The ratio decidendi is that courts can direct statutory authorities to decide applications within a reasonable timeframe to prevent undue hardship to assessees.

What were the facts?

The petitioner, The Mankara Service Co-Operative Bank Ltd., challenged an assessment order under the Income Tax Act by filing an appeal before the second respondent, the Commissioner of Income Tax (Appeals). Along with the appeal, the petitioner also filed a stay application. The assessment order was issued by the first respondent, the Income Tax Officer, Ward 1 and TPS, Palakkad. The writ petition was filed before the High Court of Kerala seeking a direction for the disposal of the stay application.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to decide the stay application filed by the petitioner within a specified period? (Question of procedure) Assessee's Contention: The petitioner bank sought a direction from the High Court for the expeditious disposal of its stay application, which was filed along with its appeal against the assessment order. The bank implicitly argued that a delay in deciding the stay application would prejudice its interests. Revenue's Contention: The judgment does not record any specific arguments made by the revenue in response to the writ petition. The revenue was represented by a Government Pleader and a Standing Counsel.

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. 8363 of 2019 PETITIONER: THE MANKARA SERVICE CO-OPERATIVE BANK LTD. NO.P.363, MANKARA P.O, PALAKKAD-678 613, REPRESENTED BY ITS SECRETARY, BABU P., AGED 55, S/O. GANGADHARAN NAIR. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD 1 AND TPS, AYAKAR BHAVAN, PALAKKAD-678 014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), SAKTHAN NAGAR, THRISSUR-680 021. SMT. THUSHARA JAMES GP SRI. 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. 8363 of 2019 -2-

JUDGMENT The petitioner, impugning Ext. P1 assessment order under the Income Tax Act, filed Ext. P2 appeal before the second respondent. The petitioner also filed Ext. P3 stay application.

2.

In view of the above, there shall be a direction to the second 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 AKV JUDGE

WP(C).No. 8363 of 2019 -3- APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2016-17 DATED 27.12.2018. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2016-17 DATED 24.01.2019. EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2016-17. DATED 24.01.2019. RESPONDENT'S/S EXHIBITS:NIL. //// CA TO JUDGE

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