VILAPPIL SERVICE CO-OPERATIVE BANK LTD. vs. THE JOINT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER

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WP(C)/20066/2021HC KeralaKLHC01052059202124 September 2021Author: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS5 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court directed the petitioner to make another attempt to upload the stay petition on or before 30/9/2021. If the upload was successful within the stipulated time, the Appellate Authority was directed to consider the stay petition within two months from the date of receipt of a copy of the judgment. In the event the petitioner was unable to upload the stay petition by 30/9/2021, and this inability was intimated to the Appellate Authority along with a copy of the judgment, the Appellate Authority was to consider the physically filed stay petition (Ext.P7). All coercive proceedings pursuant to the notice of demand (Ext.P2) were to be kept pending until the consideration of the stay petition. The Court did not decide on the merits of the penalty order or the appeal itself, focusing solely on the procedural issue of uploading the stay petition.

What were the facts?

The petitioner, Vilappil Service Co-operative Bank Ltd., is a primary Agricultural Co-operative Credit Society. It is facing an order of penalty under Section 271B of the Income Tax Act, 1961, as per Ext.P1. The petitioner filed a statutory appeal (Ext.P3) uploaded on the Income Tax Department's portal. However, the petitioner encountered technical glitches in the electronic portal, preventing them from uploading a stay petition filed on 12/9/2021, despite multiple attempts. The petitioner apprehended that their appeal would become infructuous if the notice of demand (Ext.P2) was enforced. The Revenue's counsel stated that the portal glitches had been rectified and the petitioner could attempt to upload the stay petition, which was also filed in physical format (Ext.P7).

What were the issues?

1. Whether the petitioner can be granted an opportunity to upload their stay petition on the Income Tax Department's electronic portal, considering the reported technical glitches, and if so, what directions should be issued to the Appellate Authority? (Mixed question of law and fact, concerning procedural fairness and the application of Section 251 of the Income Tax Act, 1961, read with relevant procedural rules). Assessee's Contentions: The petitioner argued that due to technical glitches in the Income Tax Department's electronic portal, they were unable to upload their stay petition, filed on 12/9/2021. They apprehended that their appeal would become infructuous if coercive action was taken based on the notice of demand. They sought directions to the Appellate Authority to consider their stay petition. Revenue's Contentions: The learned Standing Counsel for the Revenue submitted that the glitches in the electronic portal had been rectified and the petitioner could attempt to upload the stay petition. They also noted that a physical copy of the stay petition had been filed.

Which sections of the Income-tax Act were involved?

Section 271B,Section 251

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 BECHU KURIAN THOMAS FRIDAY, THE 24TH DAY OF SEPTEMBER 2021 / 2ND ASWINA, 1943 WP(C) NO. 20066 OF 2021 PETITIONER: VILAPPIL SERVICE CO-OPERATIVE BANK LTD. NO.2522, HEAD OFFICE, PEYAD, THIRUVANANTHAPURAM, REP. BY ITS SECRETARY, S. RICHARDSON, S/O.S.STEPHENSON, AGED 56 YEARS, RESIDING AT TRIPTHI, MALAYAM P.O., THIRUVANANTHAPURAM DISTRICT. BY ADVS. BABU S. NAIR SMITHA BABU RESPONDENTS: 1 THE JOINT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER NATIONAL FACELESS ASSESSMENT CENTRE, ROOM NO.356, C.R.BUILDING, IP ESTATE, NEW DELHI 110 002 2 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS ASSESSMENT CENTRE (NFAC), ROOM NO.356, C.R.BUILDING, IP ESTATE, NEW DELHI 110 002 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.09.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 20066 OF 2021 2 BECHU KURIAN THOMAS, J ................................................ W.P.(C) No.20066 of 2021 …........................................ Dated this the 24TH day of September, 2021

JUDGMENT Petitioner is a primary Agricultural Co-operative Credit Society. He faces an order of penalty under Section 271B of the Income Tax Act as per Ext.P1. Petitioner has preferred a statutory appeal as Ext.P3 which was uploaded in the portal of Income Tax Department. However, it is submitted that, petitioner has not been able to upload the stay petition which was filed on 12/9/2021, due to the glitches in the electronic portal of the Income Tax Department in spite of several attempts. Petitioner apprehends that his appeal will become infructuous, if the notice of demand is carried out.

WP(C) NO. 20066 OF 2021 3

2.

The learned

Standing

Counsel Adv.Christopher Abraham submitted that the glitches in the electronic portal of the Income Tax Department has already been rectified and petitioner can attempt to upload the stay petition, which it has already filed in physical format as evident from Ext.P7. 3. Having regard to the submissions made as above, I direct the petitioner to make an attempt to upload the stay petition Ext.P5, once again on or before 30/9/2021. If petitioner is able to be upload the stay petition as directed above, within the time stipulated, the Appellate Authority shall considered the stay petition within a period of 2 months from the date of receipt of a copy of this judgment.

4.

If by any chance petitioner is unable to upload the stay petition by 30/9/2021, and the same is intimated to the appellate authority along with a copy of this judgment,

WP(C) NO. 20066 OF 2021 4 the Appellate Authority will take up stay petition filed in physical format as Ext.P7 and consider the same as directed above within the time limit specified above. All coercive proceedings pursuant to Ext.P2 notice of demand shall be kept pending till such consideration. The writ petition is disposed of as above. BECHU KURIAN THOMAS JUDGE AJM

WP(C) NO. 20066 OF 2021 5

Appendix — schedule of exhibits
APPENDIX OF WP(C) 20066/2021 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ORDER PASSED BY THE 1ST RESPONDENT UNDER SECTION 271B OF THE INCOME TAX ACT DATED 9.8.2021. Exhibit P2 TRUE COPY OF THE NOTICE OF DEMAND ISSUED UNDER SECTION 156 OF THE INCOME TAX, TO THE PETITIONER BY THE FIRST RESPONDENT DATED, 9.8.2021. Exhibit P3 TRUE COPY OF THE APPEAL PREFERRED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DT, 30.8.2021. Exhibit P4 TRUE COPY OF THE ACKNOWLEDGMENT ON RECEIPT OF EXHIBIT P3 APPEAL. Exhibit P5 TRUE COPY OF THE APPLICATION FOR STAY PREPARED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DT, 12.9.21. Exhibit P6 TRUE COPY OF THE POSTAL RECEIPT SHOWING THE DISPATCH OF EXHIBIT P5 DATED, 14.9.2021. Exhibit P7 TRUE COPY OF THE TRACK CONSIGNMENT OF THE POSTAL DEPARTMENT. RESPONDENT’S EXHIBITS: NIL AJM //TRUE COPY// PA TO JUDGE

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