THE KARAKURISSI SERVICE CO-OPERATIVE BANK LTD., vs. THE INCOME TAX OFFICER,

WP(C)/8450/2020HC KeralaKLHC01021990202018 March 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala, without expressing any view on the merits of the case, disposed of the writ petition. It directed the Income Tax Appellate Tribunal (ITAT), Ernakulam, to consider the stay application filed by the petitioner in support of their appeal. The ITAT was instructed to do so in accordance with the law, after providing an opportunity of hearing to both the petitioner and the revenue. The Tribunal was directed to pass an order within a period of 45 days from the receipt of a certified copy of the judgment. Furthermore, the High Court ordered that any coercive measures contemplated or any demand raised against the petitioner should be kept in abeyance until the adjudication of the stay application.

What were the facts?

The petitioner, Karakurissi Service Co-operative Bank Ltd., is a primary agricultural credit society. They challenged an assessment order dated February 19, 2016, for the assessment year 2014-15. An appeal before the Commissioner of Income Tax (Appeals) was dismissed on February 17, 2020. The petitioner then filed an appeal before the Income Tax Appellate Tribunal (ITAT) and a stay application, both of which were pending. The petitioner filed a writ petition before the High Court of Kerala seeking directions for the ITAT to consider their stay application within a timeframe, citing the threat of coercive steps.

What were the issues?

1. Whether the High Court should direct the Income Tax Appellate Tribunal (ITAT) to consider the petitioner's stay application within a specified timeframe? (Question of procedure/administration) Assessee's Contention: The petitioner argued that their appeal and stay application before the ITAT were pending, and they faced the threat of coercive steps. They sought a direction from the High Court to the ITAT to consider the stay application within a reasonable time frame. Revenue's Contention: The respondent (Revenue) submitted that if the High Court issued any directions, the ITAT might face difficulties in deciding applications due to numerous prior appeals pending consideration.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL WEDNE AY, THE 18TH DAY OF MARCH 2020 / 28TH PHALGUNA, 1941 WP(C).No.8450 OF 2020(E) PETITIONER/S: THE KARAKURISSI SERVICE CO-OPERATIVE BANK LTD., NO.P 1025, KARAKURISSI, PALAKKAD - 678 595,. REPRESENTED BY ITS SECRETARY, A JAYASREE, AGED 48, D/O.A.ANIYAN MENON. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD 4, AYAKAR BHAVAN, PALAKKAD - 678 014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), THRISSUR - 680 021. 3 THE INCOME TAX APPELLATE TRIBUNAL, AYAKAR BHAVAN, KAKKANADU, KOCHI - 682 030, REPRESENTED BY ITS REGISTRAR. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

2 WP(C).No.8450 OF 2020 J U D G M E N T Dated this the 18th day of March 2020 The petitioner, a primary agricultural credit society, against assessment order dated 19.2.2016 Ext.P1 pertaining to assessment year 2014-15, preferred an appeal before the Commissioner of Income Tax having juri iction. The aforementioned appeal, vide order dated 17.02.2020 Ext.P2 was dismissed. Counsel for the petitioner submits that against aforementioned dismissal order, preferred an appeal before the Income Tax Appellate Tribunal, Ernakulam Ext.P3 and a stay application in Ext.P4 dated 13.03.2020 and the same are pending consideration. However as per the assertions made in the Writ Petition, the threat of coercive steps is looming large. Her client would be satisfied in case appropriate directions are issued to the ITAT to consider the stay application in accordance with law within some time frame.

Issue notice before admission. Mr. Jose Joseph accepts notice on behalf of the respondents and submits that 3 WP(C).No.8450 OF 2020 in case any direction by this court, the Income Tax Appellate Tribunal may be in difficulty in deciding the applications, since numerous appeals prior to the appeal of the petitioner are pending consideration.

Having heard the counsel for the parties, without expressing any views on the merits of the case, I dispose of this writ petition with a direction to the Income Tax Appellate Tribunal, Ernakulam to consider the application for stay Ext.P4 submitted in support of Ext.P3 appeal, in accordance with law, after affording opportunity of hearing to the petitioner and as well as the revenue and pass an order within a period of 45 days from the receipt of certified copy of this judgment. Till such time if any coercive measures are contemplated or any demand is raised, it is ordered to be kept in abeyance till the adjudication of stay application. AMIT RAWAL JUDGE SM

4 WP(C).No.8450 OF 2020

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2014-15. EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2014-15. EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT 2014-15. EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT.

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