THE ALAPPUZHA DISTRICT CO-OPERATIVE BANK LTD. vs. THE DY.COMMISSIONER OF INCOME TAX,

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WP(C)/7260/2019HC KeralaKLHC01018641201911 March 2019Author: HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the 2nd respondent, the Commissioner of Income Tax (Appeals), to dispose of the stay petition within a period of two months after issuing notice to the petitioner. The Court further ordered that recovery proceedings based on the assessment order shall be kept in abeyance until the disposal of the stay petition. The reasoning is based on ensuring that the stay petition is addressed expeditiously, thereby providing relief to the petitioner while their appeal is pending. The ratio decidendi is that appellate authorities should endeavor to dispose of stay petitions within a reasonable timeframe to prevent undue hardship to assessees and to maintain the status quo until a final decision on the appeal is reached. The operative direction is to dispose of the stay petition within two months and to keep recovery proceedings in abeyance.

What were the facts?

The petitioner, The Alappuzha District Co-operative Bank Ltd., is challenging an assessment order (Ext.P1). The bank filed an appeal (Ext.P2) and a stay petition (Ext.P3) before the 2nd respondent, the Commissioner of Income Tax (Appeals). The writ petition was filed seeking directions regarding the disposal of the stay petition. The assessment order led to recovery proceedings (Ext.P4, Ext.P4(a), and Ext.P4(b)). The petitioner is represented by its General Manager, and the respondents include the Deputy Commissioner of Income Tax, the Commissioner of Income Tax (Appeals), and Chief Managers of State Bank of India branches and Kerala State Co-operative Bank Ltd.

What were the issues?

1. Whether the 2nd respondent (Commissioner of Income Tax (Appeals)) should be directed to dispose of the stay petition filed by the petitioner within a specified period. The petitioner contends that the appeal and stay petition have been filed against the assessment order and seeks a direction for expeditious disposal. The revenue has not recorded any specific arguments on this procedural issue in the judgment. The issue turns on the general principles of administrative efficiency and the right of an assessee to have their grievances addressed promptly. The core of the dispute is the delay in the disposal of the stay petition, which consequently keeps recovery proceedings in abeyance.

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 11TH DAY OF MARCH 2019 / 20TH PHALGUNA, 1940 WP(C).No. 7260 of 2019 PETITIONER/S: THE ALAPPUZHA DISTRICT CO-OPERATIVE BANK LTD. P.B.NO.104, ALAPPUZHA, REPRESENTED BY ITS GENERAL MANAGER, JOLLY JOHN BY ADVS. SRI.HARISANKAR V. MENON SMT.K.KRISHNA SMT.MEERA V.MENON RESPONDENT/S: 1 THE DY.COMMISSIONER OF INCOME TAX, CIRCLE-1, ALAPPPUZHA-688011 2 THE COMMISSIONER OF INCOME TAX(APPEALS), SASTRI ROAD, KOTTAYAM-68001 3 CHIEF MANAGER STATE BANK OF INDIA, TOWN BRANCH, CCSB ROAD, ALAPPUZHA-688001. 4 CHIEF MANAGER, STATE BANK OF INDIA, ADB BRANCH, MULLAKKAL, ALAPPUZHA-688001. 5 THE CHIEF MANAGER, KERALA STATE CO-OPERATIVE BANK LTD., MULLAKKAL, ALAPPUZHA-688001. R1 & R2 BY SRI.JOSE JOSEPH, SC, INCOME TAX R3 & R4 BY SMT.S.AMBILY, SC, SBI R5 BY SRI. GILBERT GEORGE THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.03.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 7260 of 2019 2

JUDGMENT The petitioner, as against Ext.P1 assessment order, filed Ext.P2 appeal along with Ext.P3 stay petition before the 2nd respondent. In the light of the above, there shall be a direction to the 2nd respondent to dispose of the stay petition within a period of two months, after issuing notice to the petitioner. Till the disposal of stay petition recovery proceedings in Ext.P4, Ext.P4(a) and Ext.P4(b) based in the assessment order shall be kept in abeyance. The writ petition is disposed of as above. A.MUHAMED MUSTAQUE JUDGE SMA

WP(C).No. 7260 of 2019 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2013-14. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE ETHE 2ND RESPONDENT FOR THE YEAR 2013-14. EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2013-14. EXHIBIT P4 COPY OF NOTICE ISSUED BY THE 1ST RESPONDENT TO THE 3RD RESPONDENT BANK EXHIBIT P4 (a) COPY OF NOTICE ISSUED BY THE 1ST RESPONDENT TO THE 4TH RESPONDENT BANK EXHIBIT P4 (b) COPY OF NOTICE ISSUED BY THE 1ST RESPONDENT TO THE 5TH RESPONDENT BANK. RESPONDENT(S)' EXHIBITS :- NIL SMA

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