KANNUR BUILDING MATERIALS MARKETING CO-OPERATIVE SOCIETY LTD. NO.C-1741 vs. THE JOINT COMMISSIONER OF INCOME TAX,

WP(C)/8194/2019HC KeralaKLHC01020930201918 March 2019Author: HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE5 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court directed the 4th respondent, the Commissioner of Income Tax (Appeals), to dispose of the stay applications filed by the petitioner within a period of two months. Consequently, it was ordered that recovery proceedings would be deferred until the disposal of the stay applications. Furthermore, the Court ordered the immediate defreezing of the petitioner's bank accounts. The writ petition was disposed of in light of these directions. The principle established is that appellate authorities should expedite the disposal of stay applications, and recovery actions should be put on hold pending such disposal, with a direction to unfreeze bank accounts to facilitate the assessee's operations.

What were the facts?

The petitioner, Kannur Building Materials Marketing Co-operative Society Ltd., a co-operative society, filed appeals against orders passed by the assessing authority under the Income Tax Act. During the pendency of these appeals, the society's bank accounts with respondents 5 to 12 were frozen for the recovery of amounts. The petitioner approached the High Court of Kerala by way of a writ petition seeking relief regarding the frozen accounts and the pending appeals.

What were the issues?

1. Whether the High Court should direct the 4th respondent (Commissioner of Income Tax (Appeals)) to dispose of the stay applications filed by the petitioner within a specified period. Assessee's Contention: The petitioner, a co-operative society, sought a direction for the expeditious disposal of its stay applications pending before the appellate authority. The petitioner also sought the defreezing of its bank accounts. Revenue's Contention: The judgment does not record any specific contentions from the revenue regarding the stay applications or the defreezing of bank accounts. The revenue's role was primarily in passing the assessment orders and initiating recovery proceedings.

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 MONDAY, THE 18TH DAY OF MARCH 2019 / 27TH PHALGUNA, 1940 WP(C).No.8194 of 2019 PETITIONER: KANNUR BUILDING MATERIALS MARKETING CO-OPERATIVE SOCIETY LTD. NO.C-1741 REPRESENTED BY ITS SECRETARY, PAPPINISSERY P.O, KANNUR DISTRICT-670561. BY ADVS. SRI.C.A.JOJO SRI.JACOB CHACKO SRI.MATHEWS JOSEPH RESPONDENTS: 1 THE JOINT COMMISSIONER OF INCOME TAX, CIRCLE -1, AAYAKAAR BHAVAN, KANNOTHUMCHAL, PIN-670006. 2 THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1, AAYAKAR BHAVAN, KANNOTHUMCHAL, PIN-670006. 3 THE ASST. COMMISIONER OF INCOME TAX, CIRCLE-1, AAYAKAR BHAVAN, KANNOTHUMCHAL, PIN-670006. 4 THE COMMISSIONER OF INCOME TAX(APPEALS) OFFICE OF THE COMMISSIONER OF INCOME TAX(APPEALS), MANANCHIRA, KOZHIKODE-671003. 5 THE BRANCH MANAGER, KANNUR DISTRICT CO-OPERATIVE BANK LTD, MAIN BRANCH, KANNUR-670006. 6 THE BRANCH MANAGER, S B I, PAPPINISSERY, BRANCH, KANNUR-670006. 7 THE MANAGER PAPPINISSERY SERVICE CO-OP. BANK, PAPPINISSERY P.O,, KANNUR-670006. W.P.(C) No.8194/2019 2 8 THE BRANCH MANAGER, KANNUR DISTRICT CO-OPERATIVE BANK LTD, PUTHIYATHERU BRANCH, KANNUR-670006. 9 THE BRANCH MANAGER, THE MATHIL SERVICE CO-OPERATIVE BANK LTD, CHOORAL BRANCH, KANNUR-670006. 10 THE BRANCH MANAGER, ERAMAM KUTTOOR SERVICE CO-OPERATIVE BANK LTD, KUTTOOR BRANCH, KANNUR - 670 006. 11 THE BRANCH MANAGER, PAPPNISSERY SERVICE CO-OPERATIVE BANK LTD, EVENING BRANCH, KANNUR-670006. 12 THE BRANCH MANAGER, PAPPINISSERY CO-OPERATIVE RURAL BANK LTD, EVENING BRANCH, PAPPINISSERY, KANNUR-670006. OTHER PRESENT: SRI.M.SASEENDARAN, SC, KANNUR DIST.CO-OP BANK. SRI.S.EASWARAN SRI.CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.03.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.8194/2019 3

J U D G M E N T The petitioner, a co-operative society, filed appeals as against the orders passed by the assessing authority under the Income Tax Act. In the meanwhile, the account maintained with respondents 5 to 12 has been freezed to recover the amount.

In the light of the above, there shall be a direction to the 4th respondent to dispose the stay applications filed by the petitioner within a period of two months. Till then, recovery proceedings shall be deferred. Accordingly, it is ordered to defreeze the Bank Account of the petitioner forthwith.

This writ petition is disposed of as above. A.MUHAMED MUSTAQUE JUDGE smp APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER DATED 21.12.2017 WITH DEMAND NOTICE ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 AOF THE DEMAND NOTICE DATED 21.12.2017 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 AOF THE ASSESSMENT ORDER DATED 27.12.2018 WITH DEMAND NOTICE ISSUED BY THE FIRST RESPONDENT. EXHIBIT P4 AOF THE DEMAND NOTICE DATED 27.12.2018 ISSUED BY THE 3RD RESPONDENT. EXHIBIT P5 AOF THE APPEAL BEFORE THE 4TH RESPONDENT FOR AY 2015-16 DATED 21.01.2018. EXHIBIT P6 AOF THE STAY PETITION BEFORE THE 4TH RESPONDENT FOR AY 2015-16 DATED 14.02.2018. EXHIBIT P7 AOF THE APPEAL BEFORE THE 4TH RESPONDENT FOR AY 2016-17 DATED 26.01.2019. EXHIBIT P8 AOF THE STAY PETITION BEFORE THE 4TH RESPONDENT FOR AY 2016-17 DATED 04.02.2019. EXHIBIT P9 AOF THE DEMAND NOTICE U/S.2718 FOR RS.1,50,000/- DATED 31.05.2018. EXHIBIT P10A AOF THE DEMAND NOTICE U/S.27IF FOR RS.5000/- DATED 15.05.2018 ISSUED BY THE 3RD RESPONDENT. EXHIBIT P11 AOF THE REVISION PETITION BEFORE THE 4TH RESPONDENT DATED 22.06.2018. EXHIBIT P12 AOF THE A NOTICE UNDER S.226(3) ISSUED BY THE 1ST RESPONDENT TO THE 5TH RESPONDENT DATED 11.03.2019. EXHIBIT P13 AOF A NOTICE UNDER S.226(3) ISSUED BY THE 1ST RESPONDENT TO THE 6TH RESPONDENT DATED 11.03.2019. EXHIBIT P14 AOF THE A NOTICE UNDER S.226(3) ISSUED BY THE 1ST RESPONDENT TO THE 6TH RESPONDENT DATED 11.03.2019. RESPONDENTS' EXHIBITS: NIL.P.S to Judge smp

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