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

WP(C)/7848/2019HC KeralaKLHC01019958201915 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, all recovery proceedings pursuant to the impugned assessment order were to be kept in abeyance. The Court did not decide on the merits of the appeal or the stay application itself, but rather on the procedural aspect of ensuring a timely decision on the stay application. The ratio is that a litigant is entitled to a prompt decision on a stay application filed in an appeal, and recovery can be deferred until such decision is made.

What were the facts?

The petitioner, The Kanjikode 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 present writ petition was filed seeking directions regarding the disposal of this stay application and to keep recovery proceedings in abeyance.

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. Assessee's Contention: The petitioner bank seeks a direction for the expeditious disposal of its stay application filed before the Commissioner of Income Tax (Appeals) against the assessment order. Revenue's Contention: The judgment does not record any specific arguments from the revenue.

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 15TH DAY OF MARCH 2019 / 24TH PHALGUNA, 1940 WP(C).No. 7848 of 2019 PETITIONER: THE KANJIKODE SERVICE CO-OPERATIVE BANK LTD.NO.F 1199, KANJIKODE.P.O,KANJIKODE, PALAKKAD-678 621, REPRESENTED BY ITS SECRETARY,GURU RAJALINGAM, AGED 57, S/O.MUITHUKARUPPANNA PILLAI. BY ADVS. SRI.HARISANKAR V. MENON SMT.K.KRISHNA 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, GOVERNMENT PLEADER SRI. JOSE JOSEPH, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.03.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 7848 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.

In view of the above, there shal 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 impuged 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. 7848 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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