M/S.KARAKULAM SERVICE CO OPERATIVE BANK LTD. vs. THE INCOME TAX OFFICER

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WP(C)/570/2020HC KeralaKLHC01001794202010 January 2020Author: HONOURABLE MR. JUSTICE ALEXANDER THOMAS4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the Income Tax Appellate Tribunal to consider the stay application (Ext.P7a) filed by the petitioner. The Tribunal is to afford a reasonable opportunity of being heard to both the petitioner and the departmental authorities before passing orders on the stay application. The Court emphasized that this should be done without much delay, preferably within a period of 2-3 months from the date of production of a certified copy of the judgment. Until the stay application is disposed of, further coercive steps for the enforcement of the impugned proceedings are to be kept in abeyance. The High Court did not decide the merits of the appeal or the stay application itself, but rather directed the Tribunal to proceed with its consideration.

What were the facts?

The petitioner, M/s. Karakulam Service Co-operative Bank Ltd., is challenging an order (Ext.P6) passed by the Commissioner of Income Tax (Appeals). This order followed an initial assessment order (Ext.P1) and a first appellate order (Ext.P2). A modified assessment order (Ext.P3) was issued in line with Ext.P2. The First Appellate Authority then rectified Ext.P2, leading to the impugned Ext.P6 order. Aggrieved by Ext.P6, the petitioner filed an appeal (Ext.P7) before the Income Tax Appellate Tribunal, along with a stay application (Ext.P7a). The present writ petition was filed seeking directions from the High Court.

What were the issues?

1. Whether the High Court should direct the Income Tax Appellate Tribunal to consider and pass orders on the stay application (Ext.P7a) filed by the petitioner, expeditiously. Assessee's Contention: The petitioner, aggrieved by Ext.P6 order, has filed an appeal (Ext.P7) and a stay application (Ext.P7a) before the Income Tax Appellate Tribunal. The petitioner seeks a direction for the Tribunal to consider and decide the stay application without delay. Revenue's Contention: The judgment does not record any specific contentions made by the revenue in this writ petition. The focus is on the procedural direction sought by the petitioner.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

W.P.(c)No.570/2020
W.P.(C)No.570 of 2019

Read from the judgment's own cause title. This page is filed under one of them.

Cause title — parties, addresses and appearances
W.P.(c)No.570/2020 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE ALEXANDER THOMAS FRIDAY, THE 10TH DAY OF JANUARY 2020 / 20TH POUSHA, 1941 WP(C).No.570 OF 2020(U) PETITIONER: M/S.KARAKULAM SERVICE CO OPERATIVE BANK LTD. KP-1/382, KARAKULAM P.O., NEDUMANGAD, TRIVANDRUM- 695564, REPRESENTED BY ITS SECRETARY, SHRI.K.PADMAKUMAR. BY ADVS. SRI.T.M.SREEDHARAN (SR.) SMT.NISHA JOHN SRI.V.P.NARAYANAN RESPONDENT: 1 THE INCOME TAX OFFICER WARD 2(3), THIRUVANANTHAPURAM- 695003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), 2ND FLOOR, AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM- 695003. 3 THE ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, 1ST FLOOR, (BLOCK C-1 AND C-II), KENDRIYA BHAVAN, OPP.CSEZ, KAKKANAD, COCHIN- 682037. OTHER PRESENT: SRI.CHRISTOPHER ABRAAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10.01.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(c)No.570/2020 2 ALEXANDER THOMAS, J. ------------------------------------------- W.P.(C)No.570 of 2019 ---------------------------------------------- Dated this the 10th day of January, 2020

JUDGMENT Ext.P1 is stated to be the assessment order in this case,which has been challenged in the First Appeal and which has now resulted in Ext.P2 First Appellate Order. Pursuant to Ext.P2 First Appellate Order, the assessment authority has issued Ext.P3 modified assessment order so as to be in tune with Ext.P2 First Appellate Order. Thereafter, it appears that the First Appellate Authority has rectified Ext.P2 First Appellate Order, which has resulted in the impugned Ext.P6 order. Aggrieved by Ext.P6 order, the petitioner has preferred Ext.P7 appeal before the Income Tax Appellate Tribunal which has been filed within time and Ext.P7 (a) stay application has been field in Ext.P7 appeal before the said Appellate Tribunal.

2.

Taking note of the facts and circumstances of the case, it is ordered that the Income Tax Appellate Tribunal may consider the matter in Ext.P7(a) stay application and after affording reasonable opportunity of being heard to the petitioner and the departmental authorities concerned may pass orders on the stay application, without much delay preferably within a period 2-3 months from the date of production certified copy of this judgment. Until orders are passed disposing of Ext.P7 stay application, further coercive steps for enforcement of the impugned proceedings shall be kept in abeyance. With these observations and directions, the above Writ Petition (Civil) will stand disposed of. ALEXANDER THOMAS, JUDGE. acd

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASST.ORDER DATED 23.10.2016 ALONG WITH DEMAND NOTICE. EXHIBIT P2 TRUE COPY OF THE ORDER OF THE SECOND RESPONDENT IN ITA NO.91/EF/TVM/CIT(A)/TVM/2017-18 DATED 27.11.2018. EXHIBIT P3 TRUE COPY OF MODIFIED ORDER DATED 18.12.2018 FOR THE ASST.YEAR 2011-12 ALONG WITH DEMAND NOTICE. EXHIBIT P4 TRUE COPY OF THE JUDGMENT DATED 03.04.2019 IN WPC 10371/2019 OF THIS HON'BLE COURT. EXHIBIT P5 TRUE COPY OF CHALLAN DATED 29.04.2019 FOR RS.22.56,350/- EXHIBIT P6 A TRUE COPY OF THE ORDER U/S.154 R.W.S 250 OF THE ACT DATED 03.09.2019 IN ITA NO.91/EF/TVM/CIT(A)/TVM/2017-18. EXHIBIT P7 TRUE COPIES OF THE MEMORANDUM OF APPEAL DATED 05.10.2019 FILED BEFORE THE 3RD RESPONDENT. EXHIBIT P7(A) TRUE COPY OF THE STAY PETITION DATED 05.10.2019 FILED BEFORE THE 3RD RESPONDENT.

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