THE MANKARA SERVICE CO-OPERATIVE BANK LTD. vs. THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER

WP(C)/33371/2022HC KeralaKLHC01071074202221 October 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court, after hearing both parties, decided to dispose of the writ petition with a specific direction. The Court directed the second respondent (National Faceless Appeal Centre) to consider and pass orders on the stay petition (Ext.P3) in accordance with the law. Furthermore, the Court ordered that any demand arising from the assessment order (Ext.P1) shall be kept in abeyance until a decision is made on the stay petition. The principle derived is that the appellate authority should expedite the decision on stay petitions to prevent prejudice to the assessee, and recovery should be deferred during this period.

What were the facts?

The petitioner, The Mankara Service Co-operative Bank Ltd., received an order of assessment (Ext.P1) under the Income Tax Act, 1961. The petitioner filed an appeal (Ext.P2) and a stay petition (Ext.P3) before the second respondent, the National Faceless Appeal Centre. The petitioner apprehended recovery proceedings while the stay petition was pending. Consequently, the petitioner filed this writ petition before the High Court of Kerala seeking a direction to the second respondent to consider the stay petition.

What were the issues?

1. Whether the High Court should entertain a writ petition when an appeal and stay petition are pending before the appellate authority, and recovery proceedings are apprehended. Assessee's Contention: The petitioner argued that they are apprehending recovery proceedings pending the consideration of their stay petition by the appellate authority, necessitating immediate intervention by the High Court. The petitioner relied on the principle that recovery proceedings should not be initiated while a stay petition is under consideration. Revenue's Contention: The judgment does not record any specific contentions from the revenue.

Which sections of the Income-tax Act were involved?

Income Tax Act, 1961

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. 33371 OF 2022 PETITIONER: THE MANKARA SERVICE CO-OPERATIVE BANK LTD.NO. P.363, MANKARA P.O., PALAKKAD , REPRESENTED BY ITS SECRETARY, SUDHEER K.B. , PIN - 678613 BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA RESPONDENTS: 1 THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER NATIONAL FACELESS ASSESSMENT CENTRE DELHI, PIN - 110001 2 NATIONAL FACELESS APPEAL CENTRE NATIONAL FACELESS APPEAL CENTRE, DELHI , REPRESENTED BY THE COMMISSIONER OF INCOME TAX (APPEALS), PIN - 110001 OTHER PRESENT: ADV. JOSE JOSEPH (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.33371/2022 -2-

J U D G M E N T The petitioner suffered Ext.P1 order of assessment under the provisions of Income Tax Act, 1961. The petitioner preferred Ext.P2 appeal along with Ext.P3 stay petition before the 2nd respondent. The petitioner apprehends recovery proceedings pending consideration of the stay petition by the 2nd respondent. Hence this writ petition.

Having heard the learned counsel for the petitioner as well as the respondents, I am of the opinion that this writ petition itself can be disposed of with a direction.

Accordingly, there will be a direction to the 2nd respondent to consider and pass orders on Ext.P3 stay petition in accordance with law. Till such time as orders are passed on Ext.P3 any demand pursuant to Ext.P1 shall be kept in abeyance. The writ petition is disposed of as above. GOPINATH P. JUDGE AMG

W.P (C) No.33371/2022 -3- APPENDIX OF WP(C) 33371/2022 PETITIONER EXHIBITS Exhibit P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2020-21 DTD. 31-08-2022 Exhibit P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 27-09-2022 Exhibit P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 27-09-2022

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