NAVAIKULAM SERVICE CO-OPERATIVE BANK LIMITED, NO.964 vs. THE DEPUTY COMMISSIONER OF INCOME TAX

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WP(C)/7833/2019HC KeralaKLHC01019977201914 March 2019Author: HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala directed the 4th respondent (Principal Chief Commissioner of Income Tax) to decide the pending review petition (Ext.P6) within a period of two months. Consequently, all coercive steps for recovery of tax demand were ordered to be deferred until a decision is taken on the review petition. Furthermore, if the petitioner's bank account had been frozen, it was ordered to be defreezed forthwith. The court disposed of the writ petition with these directions. No specific finding was made on the merits of the original assessment or the review petition itself, as the decision was procedural.

What were the facts?

The petitioner, Navaikulam Service Co-operative Bank Limited, is a co-operative bank. The bank filed a review petition (Ext.P6) before the 4th respondent, the Principal Chief Commissioner of Income Tax, challenging an order (Ext.P5). While the review petition was pending, recovery proceedings were initiated, leading to the freezing of the petitioner's bank account with the 5th respondent bank. The petitioner approached the High Court of Kerala seeking relief against these coercive steps.

What were the issues?

1. Whether coercive steps for recovery of tax demand should be deferred pending the decision on a review petition filed by the assessee. (Question of law and fact) Assessee's Contention: The assessee argued that since a review petition challenging the impugned order was pending, coercive steps should be put on hold. They sought a direction for the speedy disposal of the review petition and a stay on recovery proceedings. Revenue's Contention: The judgment does not record any specific contentions from the revenue regarding the deferral of coercive steps or the review petition. The focus appears to be on the pendency of the review petition and its impact on recovery actions.

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 THURSDAY ,THE 14TH DAY OF MARCH 2019 / 23RD PHALGUNA, 1940 WP(C).No. 7833 of 2019 PETITIONER/S: NAVAIKULAM SERVICE CO-OPERATIVE BANK LIMITED, NO.964 REPRESENTED BY ITS SECRETARY, BINDU S, W/O ANILKUMAR N, AGED 47 YEARS, NAVAIKULAM P.O., THIRUVANANTHAPURAM DISTRICT, KERALA, PIN-695 603. BY ADVS. SRI.C.A.JOJO SRI.JACOB CHACKO SRI.MATHEWS JOSEPH RESPONDENT/S: 1 THE DEPUTY COMMISSIONER OF INCOME TAX INCOME TAX OFFICER, CIRCLE-2(1), KOWDIAR, TRIVANDRUM- 695 003. 2 THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-2(1), KOWDIAR, TRIVANDRUM-695 003. 3 COMMISSIONER OF INCOME TAX (APPEALS)-1 OFFICE OF THE COMMISSIONER OF INCOME TAX (APPEALS), TRIVNADRUM-695 003. 4 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX AYAKAR BHAVAN, TRIVANDRUM-695 003. 5 THE BRANCH MANAGER THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK, THIRUVANANTHAPURAM-695 003. OTHER PRESENT: THUSHARA JAMES GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.03.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 7833 of 2019 -:2:-

J U D G M E N T The petitioner is a co-operative bank. They approached the 4th respondent in Ext.P6 review petition against Ext.P5 order. The said review petition is pending. In the meanwhile, recovery proceedings had been initiated and the petitioner's account has been freezed. The account is maintained with the 5th respondent bank.

2.

In the light of the fact that the review petition is pending, there shall be a direction to the 4th respondent to take a decision on Ext.P6 review petition, within a period of two months. Till then, all coercive steps shall be deferred. If the account has been freezed, it is ordered to be defreezed forthwith. This writ petition is disposed of accordingly. A.MUHAMED MUSTAQUE JUDGE DST

WP(C).No. 7833 of 2019 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A COPY OF THE CERTIFICATE IN THIS REGARD ISSUED BY THE JOINT REGISTRAR OF CO- OPERATIVE SOCIETIES (GENERAL) THIRUVANANTHAPURAM DATED 25.11.2015. EXHIBIT P2 AOF THE ASSESSMENT ORDER DATED 24.12.2018 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P3 AOF THE DEMAND NOTICE DATED 24.12.2018 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P4 AOF THE APPEAL BEFORE THE 3RD RESPONDENT DATED 23.1.2019. EXHIBIT P5 AOF THE DEMAND NOTICE DATED 4.3.2019 ISSUED BY THE IST RESPONDENT. EXHIBIT P6 AOF THE REVIEW PETITION DATED 12.3.2019 BEFORE THE 4TH RESPONDENT. EXHIBIT P7 AOF THE FREEZING NOTICE DATED 13.3.2019 ISSUED BY THE IST RESPONDENT. RESPONDENTS' EXHIBITS:NIL //// P.A.To Judge

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