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

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WP(C)/33451/2022HC KeralaKLHC01071218202221 October 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition by directing the respondents to provide a link to the petitioner for uploading its stay application within two weeks of receiving a certified copy of the judgment. The petitioner was directed to file the stay application within 10 days of receiving the link. If the stay application is filed within the stipulated time, recovery proceedings under Ext.P2 will be kept in abeyance until a decision is taken on the stay application. The Appellate Authority was directed to consider the findings of the High Court in Ext.P7 judgment while deciding the stay petition. The court did not decide on the merits of the stay application itself, but facilitated its filing and consideration.

What were the facts?

The petitioner, Narakkal Service Co-operative Bank Ltd, is aggrieved by an order (Ext.P5) from the assessing officer requiring it to pay 20% of the assessed tax as a condition for a stay on recovery proceedings. The petitioner had filed an appeal (Ext.P4) against the assessment order (Ext.P2) before the National Faceless Appeal Centre but had not filed a stay petition there. The petitioner contended that a judgment of the High Court (Ext.P7) obviates the need to deposit 20% of the assessed tax for a stay. The High Court heard both parties.

What were the issues?

1. Whether the petitioner is required to deposit 20% of the assessed tax as a condition for a stay on recovery proceedings, in light of the High Court's judgment in Ext.P7? Assessee's Contention: The petitioner argued that Ext.P7 judgment of the High Court exempts it from depositing 20% of the assessed tax as a condition for stay. Revenue's Contention: The revenue's counsel was heard, but their specific arguments are not recorded in the judgment.

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 GOPINATH P. FRIDAY, THE 21ST DAY OF OCTOBER 2022 / 29TH ASWINA, 1944 WP(C) NO. 33451 OF 2022 PETITIONER: NARAKKAL SERVICE CO-OPERATIVE BANK LTD NO.E 91 NARAKKAL, ST.MARY'S CHURCH ROAD, ERNAKULAM DISTRICT, PIN – 682 505. REPRESENTED BY ITS SECRETARY. BY ADVS. M.SASINDRAN SREEHARI INDUKALADHARAN RESPONDENTS: 1 THE INCOME TAX OFFICER NON-CORP WARD 2(4) & T.P.S. KOCHI, CENTRAL REVENUE BUILDING, I.S. PRESS ROAD ERNAKULAM, KOCHI, PIN – 682 018. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), 2ND FLOOR, CR.BUILDING., I.S. PRESS ROAD, KOCHI, PIN – 682 018. BY ADV SRI.SREELAL WARRIAR, C.G.C OTHER PRESENT: ADV. CHRISTOPHER ABRAHAM (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C)No.33451/2022 2

JUDGMENT The petitioner has approached this Court being aggrieved by the fact that the assessing officer under the Income Tax Act, has by Ext.P5 order required the petitioner to pay a sum equivalent to 20% of the tax assessed as a condition for stay on further recovery proceedings. The petitioner has filed Ext.P4 appeal against Ext.P2 order of assessment before the National Faceless Appeal Centre. However the petitioner has not filed any stay petition before the National Faceless Appeal Centre.

2.

It is the case of the learned counsel appearing for the petitioner that in the light of Ext.P7 judgment of this Court, the petitioner is not required to deposit the amount equivalent to 20% of the tax assessed as a condition for stay.

3.

Heard the learned Standing Counsel appearing for the respondent department also.

4.

Having heard the learned counsel appearing for the petitioner and the learned Standing Counsel appearing for the respondents, this writ petition is disposed of directing the respondents to provide a link to the petitioner for uploading stay application in Ext.P4. This shall be done within a period of two weeks from the date of receipt of certified copy of this judgment. The petitioner shall file a stay application within 10 days from the date of receipt of the link. If such stay application is filed within the time stipulated above, recovery proceedings to recover any amount under Ext.P2 shall be kept in abeyance till a decision is taken on the stay application so filed by the petitioner. The Appellate Authority shall while deciding the stay petition also have regard to the findings of this Court in Ext.P7 judgment. The writ petition is disposed of as above. GOPINATH P. JUDGE ats

Appendix — schedule of exhibits
APPENDIX OF WP(C) 33451/2022 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE CERTIFICATE OF REGISTRATION DATED 12.3.1961 ISSUED BY THE DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES, ERNAKULAM. Exhibit P1 (A) TRUE TYPED COPY OF EXT.P1 Exhibit P2 TRUE COPY OF THE ASSESSMENT ORDER NO.ITBA/AST/S/147/2021-22/1042083469(1) DATED 30.03.2022 FOR THE YEAR 2015-16 ISSUED BY GOVERNMENT OF INDIA. Exhibit P3 TRUE COPY OF THE DEMAND NOTICE NO.ITBA/AST/S/156/2021-22/1042083536(1) DATED 30.03.2022 ISSUED BY GOVERNMENT OF INDIA Exhibit P4 A TRUE COPY OF THE APPEAL MEMORANDUM FILED BEFORE THE 2ND RESPONDENT DATED 26-04-2022. Exhibit P4 (A) TRUE COPY OF THE STAY PETITION FILED BEFORE THE 2ND RESPONDENT DATED 16-06-2022. Exhibit P5 : A TRUE COPY OF THE DIN AND LETTER NO.ITBA/RCV/F/17/2022-23/1043477092(1) DATED 17.06.2022. Exhibit P6 A TRUE COPY OF THE NOTICE OF HEARING NO.ITBA/RCV/F/123/2022-23/1046195097(1) DATED 07.10.2022 ISSUED BY THE 1ST RESPONDENT Exhibit P7 A TRUE COPY OF THE JUDGMENT DATED 19.07.2019 IN W.A.NO.1639/2019.

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