M/S.PANNIVIZHA SERVICE CO-OPERATIVE BANK LTD. NO. 891 vs. THE INCOME TAX OFFICER,
What did the High Court hold?
The High Court held that the petitioner had exercised their statutory remedy of filing appeals and stay petitions on time. The Court reckoned that procedural fairness demands that the revenue authorities should wait before taking further steps until the appellate authority decides on the stay petitions. Therefore, the writ petition was disposed of with a direction to the respondent authority to defer coercive steps until the Commissioner of Income Tax (Appeals) considers the stay petitions. The Court also expressed hope that the Commissioner would dispose of the stay petitions expeditiously. No specific amount in dispute was mentioned, and the assessment years were not recorded.
What were the facts?
The petitioner, M/s. Pannivizha Service Co-operative Bank Ltd., an assessee, filed a writ petition before the High Court of Kerala. The petitioner was challenging assessment orders (Exts. P1 & P2) passed by the Income Tax Officer (1st respondent). The petitioner had also filed appeals before the Commissioner of Income Tax (Appeals) (2nd respondent) along with stay petitions. The grievance in the writ petition was that the revenue authorities were initiating coercive steps for recovery of tax before the appellate authority could decide on the stay petitions. The petitioner sought intervention from the High Court to prevent such coercive actions.
What were the issues?
1. Whether the revenue authorities should defer coercive steps pending the decision of the appellate authority on stay petitions filed by the assessee? (Question of procedure and fairness). The assessee contended that they had exercised their statutory remedy by filing appeals and stay petitions within the prescribed time. They argued that procedural fairness dictates that coercive steps should be withheld until the appellate authority has had an opportunity to consider the stay applications. 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
JUDGMENT The petitioner, an assessee under the Income Tax Act, on the rolls of the 1st respondent, questioned the Exts.P1 & P2 assessment orders, before the 2nd respondent. The petitioner has also filed stay petitions in the appeals. Ventilating its grievance that the authorities are taking coercive steps before the appellate authority could consider the stay petitions, the petitioner has filed this writ petition.
Heard the learned counsel for the petitioner and the learned Government Pleader.
I reckon the petitioner has exercised on time his statutory remedy of filing appeals. It appears that he has also filed stay petitions. Procedural fairness demands that the authorities may wait, before taking further steps, until the appellate authority decides on the stay petitions. Therefore, I dispose of the writ petition directing the -3- W.P.(C). No. 5873 of 2019 respondent authority to defer coercive steps until the 2nd respondent considers the stay petitions. I also hope that the 2nd respondent will dispose of the stay petitions expeditiously. DAMA SESHADRI NAIDU JUDGE das
Appendix — schedule of exhibits
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