YEROOR SERVICE CO-OPERATIVE BANK LTD NO. 1816 vs. THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE

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WP(C)/16560/2022HC KeralaKLHC01033404202223 May 2022Author: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala directed the 3rd respondent, the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, to consider Ext.P4 stay petition expeditiously, at any rate, within a period of three months from the date of receipt of a copy of the judgment. The Court also ordered that all coercive proceedings against the petitioner, pursuant to the penalty order (Ext.P1), shall be kept in abeyance until the stay petition is considered. The writ petition was disposed of with these directions. The Court did not decide on the merits of the penalty order itself, but rather on the procedural aspect of expediting the appellate process.

What were the facts?

The petitioner, Yeroor Service Co-operative Bank Ltd No. 1816, is a Primary Agricultural Credit Society. The petitioner received an order of penalty under Section 271B of the Income Tax Act, 1961, dated 10.02.2022. The petitioner has filed an appeal against this penalty order, which is pending before the 3rd respondent, the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The present writ petition was filed seeking a direction for the expeditious disposal of the appeal and a stay of coercive proceedings.

What were the issues?

1. Whether the Appellate Authority (3rd respondent) should be directed to consider the appeal filed by the petitioner against the penalty order under Section 271B of the Income Tax Act, 1961, in a time-bound manner? Assessee's Contention: The petitioner argued that an appeal has been filed against the penalty order and it is pending before the Appellate Authority. The petitioner sought a direction for the expeditious disposal of this appeal and a stay of coercive proceedings. Revenue's Contention: The judgment does not record any specific contentions from the revenue. The revenue was represented by the Central Board of Direct Taxes and the Additional Commissioner of Income Tax.

Which sections of the Income-tax Act were involved?

Section 271B

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 BECHU KURIAN THOMAS MONDAY, THE 23RD DAY OF MAY 2022 / 2ND JYAISHTA, 1944 WP(C) NO. 16560 OF 2022 PETITIONER: YEROOR SERVICE CO-OPERATIVE BANK LTD NO. 1816, YEROOR, ANCHAL, KOLLAM- 691312, REPRESENTED BY ITS SECRETARY SREELATHA K.V BY ADVS. K.P.PRADEEP HAREESH M.R. SANAND RAMAKRISHNAN T.T.BIJU T.THASMI M.J.ANOOPA RESPONDENTS: 1 THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK,NEW DELHI-110001, REPRESENTED BY ITS CHAIRMAN 2 ADDITIONAL COMMISSIONER OF INCOME TAX, INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110003 3 COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE (NFAC), DELHI ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110003 OTHER PRESENT: SC,CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.05.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 16560 OF 2022 2 BECHU KURIAN THOMAS, J. =========================== W.P.(C) No.16560 of 2022 ============================ Dated this the 23rd day of May, 2022

JUDGMENT Petitioner is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. Ext.P1 order of penalty was issued under Section 271 B of the Income Tax Act, 1961, against the petitioner on 10.02.2022. 2. Since the petitioner has already preferred an appeal as Ext.P2 and the same is pending consideration before the 3rd respondent, I deem it fit that this writ petition be disposed of directing the Appellate Authority to consider the appeal in a time bound manner.

3.

Accordingly, there will be a direction to the 3rd respondent to consider Ext.P4 stay petition as expeditiously as possible, at any rate, within a period of three months from the date of receipt of a copy of this judgment.

WP(C) NO. 16560 OF 2022 3

4.

Till then, all coercive proceedings against the petitioner, pursuant to Ext.P1 order of penalty shall be kept in abeyance. The writ petition is disposed of as above. BECHU KURIAN THOMAS JUDGE ssa/

WP(C) NO. 16560 OF 2022 4

Appendix — schedule of exhibits
APPENDIX OF WP(C) 16560/2022 PETITIONER’S EXHIBITS Exhibit P1 TRUE COPY OF THE PENALTY ORDER NO ITBA/PNL/F/271B/2021-22/1039589494(1) DATED 10-02-2022 ISSUED FOR THE YEAR 2015-16 BY THE 2ND RESPONDENT TO THE PETITIONER Exhibit P2 TRUE COPY OF THE APPEAL DATED 29-04-2022 AGAINST THE PENALTY ORDER FILED FOR THE YEAR 2015-16 BEFORE THE 3RD RESPONDENT BY THE PETITIONER Exhibit P3 TRUE COPY OF THE DEMAND NOTICE NO ITBA/PNL/S/156/2021-22/1039587586(1) DATED 09-02-2022 IN PENALTY ORDER ISSUED FOR THE YEAR 2015-16 BY THE 2ND RESPONDENT TO THE PETITIONER Exhibit P4 TRUE COPY OF THE STAY APPLICATION FILED ON 29-04-2022 AGAINST THE PENALTY ORDER BEFORE THE 3RD RESPONDENT IN EXT. P2 APPEAL BY THE PETITIONER

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