THE MANNARKKAD RURAL SERVICE CO-OPEATIVE BANK LTD.P.922 vs. THE INCOME TAX OFFICER

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WP(C)/8351/2019HC KeralaKLHC01021216201920 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 take a decision on the stay application filed by the petitioner within two months. 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 itself, but focused on the procedural aspect of the stay application. The principle established is that appellate authorities should consider stay applications expeditiously, and recovery can be postponed until such consideration.

What were the facts?

The petitioner, Mannarkkad Rural Service Co-operative Bank Ltd., filed an appeal against an assessment order under the Income Tax Act before the Commissioner of Income Tax (Appeals). Along with the appeal, the petitioner also filed a stay application. The present writ petition was filed before the High Court of Kerala challenging the assessment order and seeking a direction for the disposal of the stay application. The assessment year(s) are not specified in the judgment. The amount in dispute is not stated.

What were the issues?

1. Whether the second respondent (Commissioner of Income Tax (Appeals)) should be directed to take a decision on the stay application filed by the petitioner? The petitioner contended that they have filed an appeal and a stay application, and sought a direction for the expeditious disposal of the stay application. The revenue did not record any specific arguments in the judgment.

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. 8351 of 2019 PETITIONER: THE MANNARKKAD RURAL SERVICE CO-OPEATIVE BANK LTD.NO.P.922, 8/767,MANNARKKAD,PALAKKAD-678 582, REPRESENTED BY ITS SECRETARY, M.PURUSHOTHAMAN, AGED 52,S/O.MADHAVAN NAIR. BY ADVS. SRI.HARISANKAR V. MENON SMT.K.KRISHNA SMT.MEERA V.MENON RESPONDENTS: 1 THE INCOME TAX OFFICER WARD 4,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. 8351 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. 8351 of 2019 -3- APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2016-17. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2016-17. EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2016-17. RESPONDENT'S/S EXHIBITS:NIL. //// CA TO JUDGE

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