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

WP(C)/5036/2020HC KeralaKLHC01013598202024 February 2020Author: HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE3 pages

AI SummaryRemanded

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 after issuing notice to the petitioner. The Court further ordered that recovery proceedings against the petitioner shall be kept in abeyance until the disposal of the appeal. This decision was made in light of various judgments of the High Court. The Court did not explicitly rule on the legality of the 20% pre-deposit condition itself but provided immediate relief by expediting the appeal and staying 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 (3rd respondent) against an assessment order passed under the Income Tax Act. The assessing authority had stipulated that the petitioner must pay 20% of the disputed tax to obtain a stay against recovery of the tax liability pending the appeal. The petitioner challenged this condition and sought relief from the High Court.

What were the issues?

1. Whether the condition imposed by the assessing authority for payment of 20% of the disputed tax to grant a stay against recovery pending appeal is legally sustainable? Assessee's contention: The petitioner, a co-operative society, implicitly argued that the condition of paying 20% of the disputed tax for a stay was onerous and sought intervention from the High Court. While the judgment doesn't explicitly detail the petitioner's arguments, their filing of a writ petition suggests disagreement with the assessing authority's stance. Revenue's contention: The judgment does not record any specific contentions made by the revenue in response to the writ petition. The assessing authority's action of demanding 20% of the disputed tax for a stay is noted as the basis of the dispute.

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.5036 OF 2020(D) PETITIONER: THE THACHAMPARA SERVICE CO-OPRTATIVE 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 SMT.K.KRISHNA 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.5036 OF 2020(D) 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.5036 OF 2020(D) 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE IST RESPONDENT FOR THE YEAR 2014-15 DATED 14.12.2016. EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE IST RESPONDENT FOR THE YEAR 2014-15 DATED 10.12.2019. EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT 2014-15 DATED 6.2.2020. EXHIBIT P4 COPY OF STAY PETITION FIELD BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 6.2.2020. RESPONDENTS' EXHIBITS:- NIL //TRUE COPY// P.A. TO JUDGE

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