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

WP(C)/5046/2020HC KeralaKLHC01013586202024 February 2020Author: HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE3 pages

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What did the High Court hold?

The High Court of Kerala directed the Income Tax Appellate Tribunal (3rd respondent) to dispose of the appeal filed by the petitioner within a period of two months from the date of issuing notice to the petitioner. Furthermore, the Court ordered that recovery proceedings against the petitioner shall be kept in abeyance until the disposal of the appeal. The Court's decision is based on the 'various judgments of this Court' concerning such matters, implying a precedent for granting relief in similar situations. The specific amount in dispute and the grounds for the assessment order are not detailed in the judgment. The primary relief granted is the expeditious disposal of the appeal and a stay on recovery.

What were the facts?

The petitioner, The Thachampara Service Co-operative Bank Ltd., a co-operative society, filed an appeal before the Income Tax Appellate Tribunal (ITAT) against an assessment order passed under the Income Tax Act. The assessing authority demanded payment of 20% of the disputed tax as a condition for granting a stay against recovery of the tax liability pending the appeal. The petitioner sought intervention from the High Court of Kerala regarding this demand.

What were the issues?

1. Whether the ITAT, as the appellate authority, has the power to direct the disposal of an appeal within a stipulated period, considering the petitioner's grievance regarding the pre-deposit requirement for a stay against recovery. Assessee's Contention: The petitioner, a co-operative society, is aggrieved by the demand of 20% of the disputed tax by the assessing authority to grant a stay pending appeal. They seek a direction for the expeditious disposal of their appeal. Revenue's Contention: The judgment does not record any specific contentions from the revenue regarding the issues raised by the petitioner.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE MONDAY, THE 24TH DAY OF FEBRUARY 2020 / 5TH PHALGUNA, 1941 WP(C).No.5046 OF 2020(E) PETITIONER: THE THACHAMPARA SERVICE CO-OPERATIVE BANK LTD., NO.3150, MAIN ROAD, THACHAMPARA PALAKKAD-678 593, REPRESENTED BY ITS SECRETARY, JAYAKUMAR M., AGED 54, S/O. LATE PADMANABHAN NAIR. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD 4, AYAKAR BHAVAN, PALAKKAD-678 014. 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. JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.5046 OF 2020(E) 2 JUDGMENT Dated this the 24th day of February 2020 The petitioner, a co-operative society filed an appeal as against the assessment order under the Income Tax Act before the 3rd respondent. The assessing authority insisted payment of 20% of the disputed tax to grant stay against recovery, pending appeal. In the light of the various judgments of this Court, the appellate authority-3rd respondent is directed to dispose the appeal within a period of two months after issuing notice to the petitioner. Till then, the recovery proceedings shall be kept in abeyance. Ordered accordingly. The writ petition is disposed of as above. A.MUHAMED MUSTAQUE SAS/24/02/2020 JUDGE

WP(C).No.5046 OF 2020(E) 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE IST RESPONDENT FOR THE YEAR 2015-16 DATED 22.12.2017. EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE IST RESPONDENT FOR THE YEAR 2015-16 DATED 10.12.2019. EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT - 2015-16 DATED 6.2.2020. EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 6.2.2020. RESPONDENTS' EXHIBITS:- NIL //TRUE COPY// P.A. TO JUDGE

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