M/S. PALLIYAKKAL SERVICE CO-OPERATIVE BANK LTD.NO.2232, vs. THE INCOME TAX OFFICER,

WP(C)/9075/2021HC KeralaKLHC01024614202120 April 2021Author: HONOURABLE MR. JUSTICE T.R.RAVI3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala, in its writ jurisdiction, acknowledged the assessee's grievance that their appeal and stay petition were not being disposed of, while recovery proceedings were being initiated. The Court did not delve into the merits of the assessment order or the appeal itself. Instead, it focused on the procedural delay. The Court directed the respondents to hear and dispose of the stay application (Ext.P3) within a period of two months from the date of receipt of a copy of the judgment. Furthermore, the recovery proceedings initiated under the assessment order (Ext.P1) were ordered to be kept in abeyance until the disposal of the stay application (Ext.P3). The Court explicitly stated that the writ petition was disposed of with these directions, implying no decision on the substantive issues of the appeal.

What were the facts?

The petitioner, M/s. Palliyakkal Service Co-operative Bank Ltd. (the assessee), was issued an Assessment Order (Ext.P1). The assessee challenged this order by filing an appeal (Ext.P2) and a stay petition (Ext.P3) before the Commissioner of Income Tax (Appeals). The grievance of the assessee is that these appeals and stay petitions have not been disposed of, while the respondents (Income Tax Department) are proceeding with recovery of the assessed demand. The writ petition was filed seeking a direction for the disposal of the pending appeal and stay petition.

What were the issues?

1. Whether the respondents have acted appropriately in proceeding with recovery when the assessee's appeal and stay petition are pending before the Commissioner of Income Tax (Appeals)? (Question of procedure and administrative action). The assessee contended that their appeals and stay petitions have not been disposed of, and recovery proceedings are being initiated prematurely. The assessee sought a direction for the disposal of these pending matters. The revenue, represented by the Standing Counsel, took notice of the writ petition. No specific arguments or contentions from the revenue's side regarding the merits of the appeal or the stay petition were recorded in the judgment.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI TUE AY, THE 20TH DAY OF APRIL 2021 / 30TH CHAITHRA, 1943 WP(C).No.9075 OF 2021(H) PETITIONER: M/S. PALLIYAKKAL SERVICE CO-OPERATIVE BANK LTD.NO.2232, PALLIYACKAL, EZHIKKARA, ERNAKULAM-683 513, REPRESENTED BY ITS SECRETARY, SHRI. VIJAYAN M.P. BY ADVS. SRI.T.M.SREEDHARAN (SR.) SRI.V.P.NARAYANAN SMT.NISHA JOHN SRI.ALAN PRIYADARSHI DEV RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD 3, K.A.P. COMMERCIAL COMPLEX, O/O. ADDL. C.I.T, ALUVA RANGE, R.S. ROAD, ALUVA-683 101 2 THE COMMISSIONER OF INCOME TAX (APPEALS), 28/243, “POORNIMA”, NEAR MANORAMA JUNCTION, PANAMPILLY NAGAR, KOCHI-682 036. 3 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, NEW DELHI-110 001 BY ADV. CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.04.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.9075 OF 2021(H) 2 JUDGMENT Dated this the 20th day of April 2021 Admit. The Standing Counsel for the Income Tax takes notice for the respondents. The petitioner is an assessee and has been issued with Ext.P1 Assessment Order. The petitioner has challenged the Assessment Order by filing Ext.P2 appeal along with Ext.P3 petition seeking stay of recovery.

The grievance of the petitioner is that Exts.P2 and P3 have not been disposed of so far and that the respondents are proceeding for recovery. In the nature of the limited prayer made in the writ petition, the writ petition is disposed of directing the respondents to hear and dispose of Ext.P3 application for stay within a period of two months from the date of receipt of a copy of this judgment. The recovery commenced due under Ext.P1 assessment will be kept in abeyance till the disposal of Ext.P3. The writ petition is disposed of as above. T.R.RAVI JUDGE SKP/20-4

WP(C).No.9075 OF 2021(H) 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 16.12.2019 ALONG WITH COMPUTATION OF INCOME ALONG WITH DEMAND OF INCOME TAX FOR AY 2018-19 BY THE 1ST RESPONDENT. EXHIBIT P2 TRUE COPY OF THE MEMORANDUM OF APPEAL E- FILED DATED 21.1.2020 FOR THE ASSESSMENT YEAR 2017-18 FILED BEFORE THE 2ND RESPONDENT. EXHIBIT P3 TRUE COPY OF THE STAY PETITION DATED 25.3.2021 FILED BY THE PETITIONER FOR AY 2018-2019 BEFORE THE 2ND RESPONDENT. RESPONDENTS EXHIBITS:NIL TRUE COPY P.A. TO JUDGE

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