VARAPUZHA SERVICE CO-OPERATIVE BANK LIMITED vs. THE INCOME TAX OFFICER

WP(C)/8546/2020HC KeralaKLHC01021955202018 March 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court, without expressing any opinion on the merits of the matter, disposed of the Writ Petition with a direction to the third respondent (Assistant Registrar, ITAT) to take necessary steps in considering the stay application within a period of two months from the date of receipt of a certified copy of the judgment. The ITAT was directed to take a decision on the stay application in accordance with law after affording an opportunity of hearing to both parties. Until the disposal of the stay application, any coercive measures contemplated or already taken by the assessing authority were ordered to be kept in abeyance. The interim stay was explicitly stated to be in effect only until the disposal of the stay application itself.

What were the facts?

The petitioner, M/s. Varapuzha Service Co-operative Bank Ltd., is an assessee of income tax. The assessment order for the assessment year 2013-14 was passed on March 1, 2016. The assessee filed an appeal before the Commissioner of Income Tax (Appeals), who dismissed the appeal by an order dated December 10, 2019. Subsequently, the assessee filed a Second Appeal and an interim stay application before the Income Tax Appellate Tribunal (ITAT) on February 19, 2020, and March 14, 2020, respectively. The assessee approached the High Court as the assessing authority was contemplating coercive measures, and the appeal's purpose was undermined by the lack of consideration of the interim application.

What were the issues?

1. Whether the ITAT should consider the interim stay application filed by the assessee, given the pendency of the appeal and the threat of coercive measures by the revenue? Assessee's Contention: The assessee argued that the purpose of filing an appeal and an interim stay application was rendered moot by the revenue's contemplation of coercive measures without considering the stay application. The assessee sought a direction for the expeditious disposal of the stay application. Revenue's Contention: The Income Tax Authority submitted that appeals are processed serially. However, they acknowledged that there would be no impediment for the ITAT to take up the interim application if appropriate directions were issued fixing timelines.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH,

DATED 01.03.2016 PASSED BY THE 1ST RESPONDENT FOR AY-2013-14 ALONG WITH DEMAND NOTICE EXHIBIT P2OF THE APPELLATE ORDER DATED 10.12.2019 IN ITA NO.2/ALY/CIT(A)- II/K/2016-17 PASSED BY THE 2ND RESPONDENT FOR AY-2013-14 EXHIBIT P3OF THE MEMORANDUM OF APPEAL DATED 19.02.2020 E-FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT EXHIBIT P4OF THE STAY PETITION DATED 14.03.2020 FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT

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