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

WP(C)/8412/2020HC KeralaKLHC01021840202018 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 case, disposed of the writ petition by directing the Income Tax Appellate Tribunal (ITAT), Ernakulam, to consider the stay application (Ext.P4) filed in support of the appeal (Ext.P3). The ITAT was directed to pass an order in accordance with law after providing an opportunity of hearing to both the petitioner and the revenue. The ITAT was given a period of 45 days from the receipt of a certified copy of the judgment to adjudicate the stay application. Furthermore, the Court ordered that any coercive measures contemplated or any demand raised would be kept in abeyance until the adjudication of the stay application.

What were the facts?

The petitioner, The Edathirinji Service Co-operative Bank Ltd., is a primary agricultural credit society. It was aggrieved by an assessment order dated 29.11.2019 for the assessment year 2012-13. The petitioner filed an appeal before the Commissioner of Income Tax (Appeals), which was dismissed by an order dated 10.02.2020. Subsequently, the petitioner preferred a further appeal before the Income Tax Appellate Tribunal (ITAT), Ernakulam, along with a stay application dated 14.03.2020. Both the appeal and the stay application were pending consideration before the ITAT. The petitioner apprehended coercive steps due to the pending proceedings and sought directions from the High Court for expeditious disposal of the stay application.

What were the issues?

1. Whether the High Court should issue directions to the Income Tax Appellate Tribunal (ITAT) to consider the pending stay application expeditiously? (Question of procedure) The assessee (petitioner) argued that its appeal and stay application were pending before the ITAT and it apprehended coercive steps. Therefore, it sought directions for the ITAT to consider the stay application within a timeframe. The revenue (respondents) contended that if the High Court issued directions, the ITAT might face difficulties in deciding applications as numerous appeals prior to the petitioner's appeal were pending consideration.

AI-generated summary — verify with the full judgment below

1 WP(C).No.8412 OF 2020 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL WEDNE AY, THE 18TH DAY OF MARCH 2020 / 28TH PHALGUNA, 1941 WP(C).No.8412 OF 2020(B) PETITIONER/S: THE EDATHIRINJI SERVICE CO-OPERATIVE BANK LTD. NO.R 137, EDATHIRINJI.P.O, THRISSUR-680122, REPRESENTED BY ITS SECRETARY, C.K.SURESH BABU, AGED 57, S/O.KOCHURAMAN BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 2(1), AYAKAR BHAVAN, PALAKKAD-678014 2 THECOMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN, THRISSUR-680001 3 THE INCOME TAX APPELLATE TRIBUNAL, AYAKAR BHAVAN, KAKKANADU, KOCHI-682030, REPRESENTED BY ITS REGISTRAR OTHER PRESENT: SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

2 WP(C).No.8412 OF 2020 J U D G M E N T Dated this the 18th day of March 2020 The petitioner, a primary agricultural credit society, against assessment order dated 29.11.2019 Ext.P1 pertaining to assessment year 2012-13, preferred an appeal before the Commissioner of Income Tax having juri iction. The aforementioned appeal, vide order dated 10.02.2020 Ext.P2 was dismissed. Counsel for the petitioner submits that against aforementioned dismissal order, preferred an appeal before the Income Tax Appellate Tribunal, Ernakulam Ext.P3 and a stay application in Ext.P4 dated 14.03.2020 and the same are pending consideration. However as per the assertions made in Paragraph 12 of the Writ Petition, the threat of coercive steps is looming large. Her client would be satisfied in case appropriate directions are issued to the ITAT to consider the stay application in accordance with law within some time frame.

Issue notice before admission. Mr. Jose Joseph accepts notice on behalf of the respondents and submits that in case any direction by this court, the Income Tax Appellate Tribunal may be in difficulty in deciding the applications, since

3 WP(C).No.8412 OF 2020 numerous appeals prior to the appeal of the petitioner are pending consideration.

Having heard the counsel for the parties, without expressing any views on the merits of the case, I dispose of this writ petition with a direction to the Income Tax Appellate Tribunal, Ernakulam to consider the application for stay Ext.P4 submitted in support of Ext.P3 appeal, in accordance with law, after affording opportunity of hearing to the petitioner and as well as the revenue and pass an order within a period of 45 days from the receipt of certified copy of this judgment. Till such time if any coercive measures are contemplated or any demand is raised, it is ordered to be kept in abeyance till the adjudication of stay application. AMIT RAWAL JUDGE SM

4 WP(C).No.8412 OF 2020

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2012-13 EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2012-13 EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT FOR 2012-13 EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT

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