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

WP(C)/8144/2020HC KeralaKLHC01021115202017 March 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition with a specific direction to the 3rd respondent (Income Tax Appellate Tribunal). The Tribunal was directed to consider Ext.P4, the interim application preferred along with the appeal, in accordance with the law. This consideration must be done after affording an opportunity of hearing to the petitioner. The entire process is to be completed within a period of 30 days from the date of receipt of a copy of the High Court's order. Furthermore, the Court ordered that the operation of the garnishee notice, Ext.P5, be kept in abeyance until the interim application is disposed of. The Court clarified that this interim stay is only until the disposal of the interim application and not beyond.

What were the facts?

The petitioner, Akathetara Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction to the Income Tax Appellate Tribunal (ITAT) to consider its stay petition (Ext.P4) filed along with an appeal (Ext.P3). The appeal was against assessment orders (Ext.P1) and the order of the Commissioner of Income Tax (Appeals) (Ext.P2). The petitioner stated that the appeal and stay application were filed on March 9, 2020, and subsequently received a garnishee notice (Ext.P5). The Government Pleader submitted that the Tribunal could consider interim applications but appeals are taken up based on seniority. The High Court, without expressing an opinion on the merits, directed the ITAT to consider the interim application within 30 days of receiving the order, after providing a hearing. The operation of the garnishee notice was ordered to be kept in abeyance until the disposal of the interim application.

What were the issues?

1. Whether the Income Tax Appellate Tribunal should be directed to consider the stay petition filed along with the appeal, given the subsequent issuance of a garnishee notice. Assessee's Contention: The petitioner argued that a garnishee notice was received after filing the appeal and stay petition, necessitating urgent consideration of the interim application by the ITAT. They relied on the urgency created by the garnishee notice to seek a direction from the High Court. Revenue's Contention: The Government Pleader submitted that the Tribunal would not have difficulty in taking up the interim application, but appeals are processed on a seniority basis. This implies that while the Tribunal has the capacity, the procedural aspect of seniority might be a factor in the timeline of hearing appeals.

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 AMIT RAWAL TUESDAY, THE 17TH DAY OF MARCH 2020 / 27TH PHALGUNA, 1941 WP(C).No.8144 OF 2020(P) PETITIONER/S: THE AKATHETHARA SERVICE CO-OPERATIVE BANK LTD, F-1514, AKATHETHARA POST, PALAKKAD 678 008, REPRESENTED BY ITS SECRETARY, SUBHA PRABHAKARA VARMA P. AGED 53, D/O.V.K. PRABHAKARA VARMA. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD-2, PALAKKAD 678 001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN, THRISSUR 680 001. 3 THE INCOME TAX APPELLATE TRIBUNAL, AYAKAR BHAVAN, KAKKANADU, KOCHI 682 030, REPRESENTED BY ITS REGISTRAR. 4 THE KERALA STATE CO-OPERATIVE BANK, ERST WHILE PALAKKAD DISTRICT CO-OPERATIVE BANK, TOWN BUS STAND ROAD, PALAKKAD 678 014, REPRESENTED BY ITS MANAGER. R4 BY SRI.M.SASINDRAN, SC, PALAKKAD DIST.CO.OP.BANK OTHER PRESENT: SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.8144 OF 2020(P) 2

JUDGMENT The petitioner has approached this Court seeking directions to the Income Tax Appellate Tribunal to consider Ext.P4 stay petition preferred along with the appeal, Ext.P3 against the orders of the assessment Ext.P1 and the first appellate court ie., the Commissioner of Income Tax (Appeals) Ext.P2. 2. The learned counsel appearing on behalf of the petitioner submits that the appeal and stay application have been filed on 9th March 2020. However, post thereto received a garnishee notice Ext.P5. In these circumstances, the petitioner has approached this Court.

The learned Government Pleader submits that the Tribunal would not have any difficulty in taking up the interim application but the appeals are being taken up on seniority basis.

I have heard the learned counsel for the parties and appraised the paper book.

Without expressing any opinion on the merits of the matter, I dispose of the writ petition with a direction to the WP(C).No.8144 OF 2020(P) 3 3rd respondent to consider Ext.P4 interim application preferred along with the appeal in accordance with law, after affording an opportunity of hearing to the petitioner within a period of 30 days from the date of receipt of a copy of the order. Till such time, the operation of garnishee notice, Ext.P5 is ordered to be kept in abeyance. It is made clear that the interim stay is till the disposal of the interim application and not beyond. AMIT RAWAL sab JUDGE

WP(C).No.8144 OF 2020(P) 4

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2017-18 DATED 26.12.2019. EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2017-18 DATED 05.02.2020. EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT 2017-18 DATED 09.03.2020. EXHIBIT P4 COPY OF STAY PETITION FIELD BY THE PETITIONER BEFORE THE 3RD RESPONDENT DATED 09.03.2020. EXHIBIT P5 COPY OF NOTICE ISSUED BY THE 1ST RESPONDENT DATED 13.03.2020.

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