PATTOM SERVICE CO-OPERATIVE BANK LTD. NO. T-1318, vs. THE CENTRAL BOARD OF DIRECT TAXES,

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WP(C)/1002/2022HC KeralaKLHC01002458202212 January 2022Author: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the 4th respondent, the Additional Commissioner of Income Tax, National E-Assessment Centre, Delhi, to consider and pass appropriate orders on the stay petitions (Ext.P3 series) within a period of three months from the date of receipt of a copy of the judgment. Pending this decision, all coercive proceedings pursuant to the assessment orders (Ext.P1 series) were to be kept in abeyance. The Court did not decide on the merits of the penalty imposition or the appeals themselves, but rather focused on the procedural aspect of considering the stay applications. The ratio decidendi is that where appeals and stay petitions are pending, and there's a procedural shift in the competent authority due to e-governance initiatives, the new competent authority should be directed to consider the stay petitions expeditiously, with a stay on coercive action until then.

What were the facts?

The petitioner, Pattam Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala challenging the imposition of penalty under Section 271B for five assessment years: 2012-13, 2013-14, 2014-15, 2015-16, and 2016-17. The petitioner had preferred appeals before the 3rd respondent (Commissioner of Income Tax (Appeals)) along with stay petitions. The respondents' counsel pointed out that due to the formation of the e-assessment centre, the appeals would need to be transmitted and considered by the 4th respondent (Additional Commissioner of Income Tax, National E-Assessment Centre, Delhi). The High Court was asked to direct the competent appellate authority to consider the stay petitions.

What were the issues?

1. Whether the High Court should direct the competent appellate authority to consider and pass orders on the stay petitions filed by the petitioner? Assessee's Contention: The petitioner has filed appeals and stay petitions before the appellate authorities and seeks a direction for their expeditious consideration. The petitioner relies on the general principle of seeking relief from the appellate forums. Revenue's Contention: The revenue, through its Standing Counsel, submitted that the appeals, after the formation of the e-assessment centre, would need to be transmitted and considered by the 4th respondent, who is the competent authority. This implies a procedural aspect regarding the correct forum for consideration.

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 WEDNESDAY, THE 12TH DAY OF JANUARY 2022 / 22ND POUSHA, 1943 WP(C) NO. 1002 OF 2022 PETITIONER: PATTOM SERVICE CO-OPERATIVE BANK LTD. NO. T-1318, MEDICAL COLLEGE, KANNAMMOOLA P.O, TRIVANDRUM-695 011, REPRESENTED BY ITS SECRETARY SREEJI S. BY ADVS. K.P.PRADEEP HAREESH M.R. SANAND RAMAKRISHNAN RASMI NAIR T. 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 110 001, REPRESENTED BY ITS CHAIRMAN. 2 INCOME TAX OFFICER, CIRCLE CENTRE, THIRUVANANTHAPURAM, INCOME TAX DEPARTMENT, AAYAKAR BHAVAN, 1ST FLOOR, KOWDIAR P.O, THIRUVANANTHAPURAM-691 003 3 COMMISSIONER OF INCOME TAX (APPEALS), THIRUVANANTHAPURAM, AAYAKAR BHAVAN, INCOME TAX OFFICE, KOWADIAR, THIRUVANANTHAPURAM-695 003. 4 ADDITIONAL COMMISSIONER OF INCOME TAX, NATIONAL E-ASSESSMENT CENTRE, DELHI ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM , DELHI 110 003. OTHER PRESENT: SC,CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.01.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 1002 OF 2022 2 BECHU KURIAN THOMAS, J. ----------------------------------------- W.P.(C) No. 1002 of 2022 ---------------------------------------- Dated this the 12th day of January, 2022

JUDGMENT Petitioner has preferred appeals before the 3rd respondent against the imposition of penalty under Section 271B for five assessment years. The assessment years involved are 2012-13, 2013-14, 2014-15, 2015-16 and 2016-17. Stay petitions have also been preferred along with the said appeals, copies of which are produced as Ext.P3 series.

2.

Having regard to the submissions made at the Bar, I am of the view that this writ petition itself can be disposed of directing the competent Appellate Authority to consider and pass appropriate orders on the stay petitions filed in the pending appeal.

3.

It is pointed out by the learned Standing Counsel for the respondents that, after the formation of the e-assessment

WP(C) NO. 1002 OF 2022 3 centre, the appeals will have to be transmitted and considered by the 4th respondent who is the competent amongst the respondents.

4.

In view of the above, there will be a direction to 4th respondent to consider and pass appropriate orders on Ext.P3 series [Ext.P3 and Ext.P3(a) to Ext.P3(d)] stay petitions, within a period of three months from the date of receipt of a copy of this judgment. Till then all coercive proceedings pursuant to Ext.P1 series of assessment orders shall be kept in abeyance. BECHU KURIAN THOMAS JUDGE AJM

WP(C) NO. 1002 OF 2022 4

Appendix — schedule of exhibits
APPENDIX OF WP(C) 1002/2022 PETITIONER’S EXHIBITS : Exhibit P1 TRUE COPY OF THE ORDER NO. ITBA/PNL/F/271B/2021-22/1034154039(1) DATED 16.07.2021 ISSUED FOR THE YEAR 2012-13 BY THE 2ND RESPONDENT TO THE PETITIONER. Exhibit P1(a) TRUE COPY OF THE ORDER NO. ITBA/PNL/F/271B/2021-22/1034161055(1) DATED 13.07.2021 ISSUED FOR THE YEAR 2013-14 BY THE 2ND RESPONDENT TO THE PETITIONER. Exhibit P1(b) TRUE COPY OF THE ORDER NO. ITBA/PNL/F/271B/2021-22/1034247270(1) DATED 16.07.2021 ISSUED FOR THE YEAR 2014-15 BY THE 2ND RESPONDENT TO THE PETITIONER. Exhibit P1(c) TRUE COPY OF THE ORDER NO. ITBA/PNL/F/271B/2021-22/1034194620(1) DATED 14.07.2021 ISSUED FOR THE YEAR 2015-16 BY THE 2ND RESPONDENT TO THE PETITIONER. Exhibit P1(d) TRUE COPY OF THE ORDER NO. ITBA/PNL/F/271B/2021-22/1034267171(1) DATED 22.07.2021 ISSUED FOR THE YEAR 2016-17 BY THE 2ND RESPONDENT TO THE PETITIONER. Exhibit P2 TRUE COPY OF THE APPEAL DATED 20.10.2021 FILED FOR THE YEAR 2012-13 BEFORE THE 3RD RESPONDENT BY THE PETITIONER. Exhibit P2(a) TRUE COPY OF THE APPEAL DATED 19.10.2021 FILED FOR THE YEAR 2013-14 BEFORE THE 3RD RESPONDENT BY THE PETITIONER. Exhibit P2(b) TRUE COPY OF THE APPEAL DATED 20.10.2021 FILED FOR THE YEAR 2014-15 BEFORE THE 3RD RESPONDENT BY THE PETITIONER. Exhibit P2(c) TRUE COPY OF THE APPEAL DATED 20.10.2021 FILED FOR THE YEAR 2015-16 BEFORE THE 3RD RESPONDENT BY THE PETITIONER. Exhibit P2(d) TRUE COPY OF THE APPEAL DATED 20.10.2021 FILED FOR THE YEAR 2016-17 BEFORE THE 3RD RESPONDENT BY THE PETITIONER. Exhibit P3 TRUE COPY OF THE STAY APPLICATION FILED ON 20.10.2021 BEFORE THE 3RD RESPONDENT WP(C) NO. 1002 OF 2022 5 IN EXT P2 APPEAL BY THE PETITIONER. Exhibit P3(a) TRUE COPY OF THE STAY APPLICATION FILED ON 19.10.2021 BEFORE THE 3RD RESPONDENT IN EXT. P2(A) APPEAL BY THE PETITIONER. Exhibit P3(b) TRUE COPY OF THE STAY APPLICATION FILED ON 20.10.2021 BEFORE THE 3RD RESPONDENT IN EXT. P2(B) APPEAL BY THE PETITIONER. Exhibit P3(c) TRUE COPY OF THE STAY APPLICATION FILED ON 20.10.2021 BEFORE THE 3RD RESPONDENT IN EXT. P2(C) APPEAL BY THE PETITIONER. Exhibit P3(d) TRUE COPY OF THE STAY APPLICATION FILED ON 20.10.2021 BEFORE THE 3RD RESPONDENT IN EXT. P2(D) APPEAL BY THE PETITIONER. RESPONDENT’S EXHIBITS : NIL AJM //TRUE COPY// PA TO JUDGE

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