PARAVUR VADAKKEKARA SERVICE CO-OP BANK LTD NO 3131 vs. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER

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WP(C)/33428/2022HC KeralaKLHC01071169202221 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 National Faceless Appeal Centre to consider the stay applications filed by the petitioner. Specifically, Ext.P3 stay application in Ext.P2 appeal, Ext.P6 stay application in Ext.P5 appeal, Ext.P9 stay application in Ext.P8 appeal, and Ext.P12 stay application in Ext.P11 appeal are to be considered. The Appellate Authority must afford an opportunity of hearing to the petitioner and decide these stay petitions within three months from the date of receipt of a certified copy of the judgment. Crucially, the court held that until orders are passed on these stay applications, the demands pertaining to the penalty orders and assessment orders shall remain stayed. The ratio is that the appellate authority must expedite the decision on stay petitions, and recovery should be held in abeyance during this period to prevent prejudice to the assessee.

What were the facts?

The petitioner, M/s. Paravur Vadakkekara Service Co-op Bank Ltd., is challenging penalty orders for AY 2017-2018 under Sections 271B and 272A(1)(d) of the Income Tax Act, 1961. Appeals and stay petitions were filed against these penalty orders. Additionally, the petitioner is challenging assessment orders for AY 2018-2019 and AY 2020-2021, with appeals and stay petitions also filed. The petitioner apprehends recovery proceedings are being initiated while these appeals and stay petitions are pending before the Appellate Authority. The petitioner sought a direction to stay recovery proceedings pending the decision on their stay applications.

What were the issues?

1. Whether recovery proceedings can be initiated against the petitioner pending the consideration of their stay applications before the Appellate Authority? (Question of law and fact) Assessee's Contention: The petitioner argued that recovery proceedings should be stayed pending the consideration of their stay applications by the Appellate Authority. They sought a direction to that effect. Revenue's Contention: The judgment records that the learned counsel appearing for the respondent department was heard, but does not specify any particular contention made by the revenue regarding the stay of recovery proceedings or the consideration of stay applications.

Which sections of the Income-tax Act were involved?

Section 271B,Section 272A(1)(d)

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. 33428 OF 2022 PETITIONER: M/s.PARAVUR VADAKKEKARA SERVICE CO-OP BANK LTD. NO.3131, NEENDOOR, VADAKKERKARA P.O; NORTH PARAVUR – 683 552, ERNAKULAM DISTRICT, REPRESENTED BY ITS SECRETARY SMT. JAIZY K.S. BY ADVS. V.P.NARAYANAN ALAN PRIYADARSHI DEV RESPONDENTS: 1 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER NATIONAL E - ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO 401, 2ND FLOOR, E -RAMP, JAWAHARLAL STADIUM, NEW DELHI, PIN – 110 003 2 THE COMMISSIONER OF INCOME TAX(APPEALS) NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, JAWAHARLALK STADIUM, DELHI – 110 003. 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.33428/2022 2

JUDGMENT The petitioner suffered orders imposing penalty for the year 2017-2018 under Sections 271 B, 272 A (1)(d) of the Income Tax Act. The orders imposing penalty are produced as Exts.P1 and P4. Petitioner has filed Ext.P2 appeal against Ext.P1 order along with Ext.P3 stay petition and Ext.P5 appeal along with Ext.P6 stay petition against Ext.P4 order. The petitioner also suffered Ext.P7 order of assessment for the assessment year 2018-2019 and Ext.P10 order of assessment for the assessment year 2020-2021. The petitioner has filed Ext.P8 appeal against Ext.P7 order of assessment along with Ext.P9 stay petition and Ext.P11 appeal against Ext.P10 order of assessment along with Ext.P12 stay petition.

2.

The petitioner apprehends that the recovery proceedings are initiated against the petitioner pending consideration of the appeals/stay petitions. The learned counsel for the petitioner states that there may be a direction to that recovery proceedings shall be remain stayed pending consideration of the stay applications filed by the petitioner before the Appellate Authority.

3.

Heard the learned counsel appearing for the respondent department also.

4.

Having regard to the facts and circumstances of the case and considering the limited nature of the reliefs sought for by the petitioner, this Writ Petition is disposed of directing the National Faceless Appeal Centre to consider Ext.P3 stay application filed in Ext.P2 appeal, Ext.P6 stay application filed in Ext.P5 appeal, Ext.P9 stay application filed in Ext.P8 appeal and Ext.P12 stay application filed in Ext.11 appeal after affording an opportunity of hearing to the petitioner and to decide the aforesaid stay petitions within a period of three months from the date of receipt of a certified copy of this judgment. Till such time as orders are passed on the respective stay applications, the demands in respect of the respective orders imposing penalty/tax shall remain stayed. The writ petition is disposed of as above. GOPINATH P. JUDGE ats

Appendix — schedule of exhibits
APPENDIX OF WP(C) 33428/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF PENALTY ORDER UNDER SECTION 271B OF THE ACT DATED 18.01.2022 Exhibit P2 TRUE COPY OF MEMO OF APPEAL DATED 28.01.2022 FOR AY 2017-18 Exhibit P3 TRUE COPY OF THE PETITION FOR STAY Exhibit P4 TRUE COPY OF PENALTY ORDER UNDER SECTION 272A(1)(D) DATED 25.01.2022 Exhibit P5 TRUE COPY OF MEMO OF APPEAL DATED 28.01.2022 FOR AY 2017-18 Exhibit P6 TRUE COPY OF PETITION FOR STAY DATED 27.01.2022 Exhibit P7 TRUE COPY OF THE ASSESSMENT ORDER DATED 21.04.2021 Exhibit P8 TRUE COPY OF MEMO OF APPEAL DATED 10.02.2022 FOR AY 2018-19 Exhibit P9 TRUE COPY OF THE PETITION FOR STAY DT 07.02.2022 AY 2018-19 ExhibitP10 TRUE COPY OF ASSESSMENT ORDER DATED 27.09.2022 AND DEMAND NOTICE FOR AY 2020-21 Exhibit P11 TRUE COPY OF MEMO OF APPEAL DATED 11.10.2022 FOR AY 2020-21 Exhibit P12 TRUE COPY OF THE PETITION FOR STAY DATED 7.10.2022 FOR AY 2020-21

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