SHRI.VEDAVYAS CO-OPERATIVE CREDIT SOCIETY LTD., vs. THE INCOME TAX OFFICER,

WP/145694/2020HC KarnatakaKAHC02001571202015 November 2021Bench: N.S.SANJAY GOWDA2 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the Appellate Authority to consider the petitioner's application for interim relief concerning the assessment orders. Until such consideration, the Revenue was restrained from enforcing the assessment orders. The writ petition was disposed of in view of this joint submission. The court did not decide the merits of the assessment order or the demand notice, but rather focused on the procedural aspect of granting interim relief pending appeal. The ratio is that where an appeal and an interim relief application are pending, and the revenue does not object, the appellate authority should be directed to consider the interim relief application expeditiously, and enforcement of the assessment order should be stayed until then.

What were the facts?

The petitioner, Shri. Vedavyas Co-operative Credit Society Ltd., filed a writ petition before the High Court of Karnataka, Dharwad Bench. The petition challenged an order bearing no. ITBA/AST/S/143(3)/2019-20/1022479222(1) dated 16.12.2019 for the assessment year 2017-18, and a demand notice dated 16/12/2019 bearing no. ITBA/AST/S/156/2019-20/102247295(1), both issued by the respondent, The Income Tax Officer, Ward No.2(3), Hubli. The petitioner sought to quash these orders. The procedural history indicates that an appeal against the assessment order had already been preferred, along with an application for interim relief.

What were the issues?

1. Whether the High Court should quash the assessment order dated 16.12.2019 and the demand notice dated 16.12.2019 issued by the Income Tax Officer for the assessment year 2017-18. The petitioner argued that an appeal had been filed against the assessment order and an application for interim relief was pending. The revenue did not dispute this fact. The court noted that in several other matters, it had directed the revenue not to enforce assessment orders until applications for interim prayers in appeals were considered. The revenue did not present any arguments against this procedural direction.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 15TH DAY OF NOVEMBER 2021 BEFORE THE HON’BLE MR.JUSTICE N.S.SANJAY GOWDA WRIT PETITION NO.145694/2020 (T, IT) BETWEEN:

SHRI.VEDAVYAS CO-OPERATIVE CREDIT SOCIETY LTD., NO.54-55 AND 69-70, 2ND FLOOR, SHRI. LAXMI BALAKRISHNA SQUARE ROAD, STATION ROAD, HUBBALLI 580020, REPRESENTED BY ITS CEO SHRI. ANAND S/O HANUMATACHARYA SORTUR, AGE:53 YEARS, OCC: CHIEF EXECUTIVE OFFICER, R/O: HUBBALLI-580020. ……PETITIONER (BY SRI SANGRAM S.KULKARNI, ADVOCATE)

AND :

THE INCOME TAX OFFICER, WARD NO.2(3), HUBLI., C.R. BUILDING, NAVANAGAR, HUBBALLI, KARNATAKA- 580025. ….RESPONDENT (BY SRI Y.V.RAVIRAJ, ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI AND QUASH THE ORDER BEARING NO.ITBA/AST/ S/143(3)/2019-20/1022479222(1), DATED 16.12.2019 FOR THE ASSESSMENT YEAR 2017-18 VIDE ANNEXURE-A AND ALSO QUASH DEMAND NOTICE DATED 16/12/2019 VIDE ANNEXURE-B BEARING NO.ITBA/AST/S/156/ 2019-20/102247295(1) ISSUED BY THE RESPONDENT.

: 2 : THIS PETITION COMING ON FOR HEARING INTERLOCUTORY APPLICATION, THIS DAY, THE COURT MADE THE FOLLOWING:

ORDER

It is not in dispute that as against Annexure-A an appeal is already been preferred and an application seeking interim relief’s is also made. It is not in dispute by both the counsel that in the several matters this Court had directed the Revenue not to enforce the assessment orders till the applications seeking for interim prayers in the appeals were considered.

In view of this joint submission, the Appellate Authority is directed to consider the application filed by the petitioner for grant of interim relief in respect of the assessment orders and until then the Revenue is restrained from enforcing the orders of assessment.

Accordingly, writ petition is disposed off.

Sd/- JUDGE CKK

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