VARAVOOR SERVICE CO-OPERATIVE BANK LTD NO.R.299 vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/25513/2022HC KeralaKLHC01053782202223 August 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.3 pages

AI SummaryAllowed

What did the High Court hold?

The High Court allowed the writ petition and set aside the impugned condition (Ext.P8) that required the petitioner to remit 10% of the demand for stay of recovery. The Court relied on its previous judgment (Ext.P10) in similar circumstances, which had directed the disposal of the appeal and granted a stay of recovery without any pre-deposit condition. The 1st respondent (National Faceless Appeal Centre) was directed to consider and dispose of the petitioner's appeal (Ext.P3) within three months from the date of receiving a certified copy of the judgment. Until the appeal is decided, any demand arising from the assessment order (Ext.P1) will be kept in abeyance.

What were the facts?

The petitioner, Varavoor Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala challenging an order of assessment (Ext.P1). The petitioner had filed an appeal (Ext.P3) before the National Faceless Appeal Centre (1st respondent). The grievance was that the petitioner was required to deposit 10% of the demand as a condition for a stay of recovery proceedings. The petitioner relied on a previous judgment of the High Court (Ext.P10) in similar circumstances where a stay was granted without any pre-deposit condition. The respondents are the Commissioner of Income Tax (Appeals), the Principal Commissioner of Income Tax, and the Income Tax Officer.

What were the issues?

1. Whether the condition of remitting 10% of the demand as a pre-deposit for stay of recovery proceedings is justified, considering the petitioner has filed an appeal against the assessment order. Assessee's contention: The petitioner argued that in identical circumstances, the High Court had granted a stay of recovery proceedings without imposing any condition, as evidenced by Ext.P10 judgment. They sought a similar relief. Revenue's contention: The learned Standing Counsel for the Income Tax Department was heard.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

W.P(C).25513/22 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. TUESDAY, THE 23RD DAY OF AUGUST 2022 / 1ST BHADRA, 1944 WP(C) NO. 25513 OF 2022 PETITIONER/S: VARAVOOR SERVICE CO-OPERATIVE BANK LTD NO.R.299 VARAVOOR, THRISSUR - 680 585, REPRESENTED BY ITS SECRETARY., PIN - 680585 BY ADV P.C.SASIDHARAN RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, ROOM NO.356 C.R. BUILDING, IP ESTATE, DELHI- 110 002., PIN - 110002 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX O/O THE PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, MANANCHIRA, KOZHIKODE, KERALA - 673001. , PIN - 673001 3 THE INCOME TAX OFFICER WARD 1 & TPS, CITY PLAZA, INCOME TAX OFFICE, WEST NADA, GURUVAYOOR, KERALA - 680 101, PIN - 680101 BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.08.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C).25513/22 2

JUDGMENT Aggrieved by Ext.P1 order of assessment the petitioner has filed Ext.P3 appeal before the 1st respondent- National Faceless Appeal Centre. The petitioner has approached this Court being aggrieved by the fact that the petitioner has been called upon to remit an amount equivalent to 10% of the demand as a condition for stay of recovery proceedings.

The learned counsel appearing for the petitioner states that in almost identical circumstances this Court in Ext.P10 judgment had directed the disposal of the appeal and granted stay of recovery proceedings without imposing any condition.

Heard the learned Standing Counsel also. Having regard to the facts and circumstances of the case and taking into consideration Ext.P10 judgment of this Court, this writ petition is allowed and Ext.P8 is set aside. The 1st respondent shall consider Ext.P3 appeal and dispose of the same 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 Ext.P3, any demand pursuant to Ext.P1 order of assessment shall be kept in abeyance. GOPINATH P. JUDGE okb/ //// P.S. to Judge

W.P(C).25513/22 3

Appendix — schedule of exhibits

APPENDIX OF WP(C) 25513/2022 PETITIONER EXHIBITS Exhibit P1 EXHIBIT-P1: TRUE COPY OF THE ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 2018-2019 DATED 15/04/2021 ISSUED BY THE 1ST RESPONDENT. Exhibit P2 EXHIBIT-P2: TRUE COPY OF DEMAND NOTICE UNDER SECTION 156 OF THE IT ACT DATED 15/04/2021 ISSUED BY THE 1ST RESPONDENT. Exhibit P3 EXHIBIT-P3: TRUE COPY OF THE APPEAL DATED 04/05/2021 PREFERRED BY THE PETITIONER AGAINST THE ASSESSMENT ORDER Exhibit P4 EXHIBIT-P4: TRUE COPY OF THE ACKNOWLEDGMENT OF RECEIPT OF FORM EVIDENCING OF FILING APPEAL DATED 4/05/2021 Exhibit P5 EXHIBIT P5:- TRUE COPY OF THE ORDER ISSUED BY THE 3RD RESPONDENT DATED 28/10/2021 Exhibit6 EXHIBIT P6:- :- TRUE COPY OF STAY PETITION FILED BY THE PETITIONER DATED 06/05/2022 BEFORE THE 2ND RESPONDENT. Exhibit P7 EXHIBIT P7:- TRUE COPY OF THE JUDGMENT DATED 13.05.2022 IN WPC NO. 15865/2022 OF THIS HONOURABLE COURT Exhibit P8 EXHIBIT P8:- THE TRUE COPY OF THE ORDER DATED 7/7/2022 ISSUED BY THE 2ND RESPONDENT Exhibit P9 EXHIBIT P9:- THE TRUE COPY OF THE JUDGMENT DATED 17/7/2019 IN W.A NO. 1536/2019 Exhibit P10 EXHIBIT P10:- THE TRUE COPY OF THE JUDGMENT IN W.P(C) NO. 25647/2021 DATED 18/11/2021

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