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

WP(C)/8453/2020HC KeralaKLHC01021837202018 March 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL5 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition with a specific direction to the Commissioner of Income Tax (Appeals) (the second respondent). The Commissioner was directed to decide on the stay petitions (Exts.P3 to P3(d)) filed in support of the appeals, in accordance with the law. This decision was to be made after providing the petitioner (assessee) an opportunity of hearing, within a period of two months from the date of receiving a copy of the judgment. Furthermore, the Court ordered that recovery proceedings pursuant to the assessment orders be kept in abeyance until a decision was taken on the stay applications. The Court did not decide on the merits of the appeals themselves, but rather on the procedural aspect of their timely disposal.

What were the facts?

The petitioner, Chalakudy Service Co-operative Bank Limited, filed a writ petition before the High Court of Kerala seeking a direction for the disposal of appeals and stay petitions filed before the Commissioner of Income Tax (Appeals). These appeals, filed in 2017, were against assessment orders. The petitioner contended that the appeals and stay applications have been pending since 2017, and the Income Tax Department was initiating coercive recovery measures. The respondent, the Income Tax Officer and the Commissioner of Income Tax (Appeals), through the Government Pleader, stated that a decision on the stay applications would be taken if a time frame was fixed by the Court.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of pending appeals and stay petitions filed by the assessee, considering the delay and ongoing coercive measures by the revenue. Assessee's Contention: The appeals and stay petitions have been pending since 2017, and the Income Tax Department is pursuing coercive recovery actions, necessitating a directive for timely disposal. Revenue's Contention: The revenue indicated that appropriate decisions on the stay applications would be taken by the authorities if the Court fixed a time frame for disposal.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

WP(C).No.8453 OF 2020(F) 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL WEDNESDAY, THE 18TH DAY OF MARCH 2020 / 28TH PHALGUNA, 1941 WP(C).No.8453 OF 2020(F) PETITIONER/S: THE CHALAKUDY SERVICE CO-OPERATIVE BANK LIMITED NO. R 192, CHALAKUDY P.O, THRISSUR DISTRICT PIN 680 307 REPRESENTED BY ITS SECRETARY SMT. V.K ELSY BY ADVS. SRI.K.S.HARIHARAN NAIR SMT.HARIMA HARIHARAN RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 2(5), AAYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, THRISSUR PIN 680 001 2 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, THRISSUR 680 001 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.8453 OF 2020(F) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Exts.P2 to P2(d) appeals and Exts.P3 to P3(d) stay petitions preferred before the second respondent/Commissioner of Income Tax (Appeals) against the assessment orders Exts.P1 to P1(d). Learned Counsel for the petitioner submits that the appeals are pending since 2017 along with the stay applications, and the income tax department is proceeding with coercive measures.

Learned Government Pleader submitted that appropriate decision on the applications of stay would be taken by the authorities, if a time frame is fixed by this Court.

Having heard the learned counsel on both sides, the writ petition is disposed of with a direction to the second respondent to take a decision on Exts.P3 to P3(d) stay petitions filed in support of the memorandum of appeal, in accordance with law, after affording an opportunity of hearing to the petitioner, within a period of two months from the date of receipt of a copy of this judgment. Till such time a decision is taken on WP(C).No.8453 OF 2020(F) 3 stay applications, recovery proceedings pursuant to the assessment orders shall be kept in abeyance. AMIT RAWAL JUDGE Jm/

WP(C).No.8453 OF 2020(F) 4

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER DATED 08-03-2016 ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2008-09 EXHIBIT P1 A COPY OF ASSESSMENT ORDER DATED 10-11-2016 ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2009-10 EXHIBIT P1 B COPY OF ASSESSMENT ORDER DATED 20-11-2017 ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2010-11 EXHIBIT P1 C COPY OF ASSESSMENT ORDER DATED 20-11-2017 ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2015-16 EXHIBIT P1 D COPY OF ASSESSMENT ORDER DATED 18-12-2018 ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2016-17 EXHIBIT P2 COPY OF APPEAL MEMORANDUM DATED 11-04-2016 AGAINST EXT P1 EXHIBIT P2 A COPY OF APPEAL MEMORANDUM DATED 15-02-2017 AGAINST EXT P1(A) EXHIBIT P2 B COPY OF APPEAL MEMORANDUM DATED 22-12-2017 AGAINST EXT.P1(B) EXHIBIT P2 B COPY OF APPEAL MEMORANDUM DATED 22-12-2017 AGAINST EXT.P1(B) EXHIBIT P2 B COPY OF APPEAL MEMORANDUM DATED 22-12-2017 AGAINST EXT.P1(B) EXHIBIT P2 C COPY OF APPEAL MEMORANDUM DATED 22-12-2017 AGAINST EXT P1(C) EXHIBIT P2 D COPY OF APPEAL MEMORANDUM DATED 16-01-2019 AGAINST EXT P1(D) EXHIBIT P3 COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 11-03-2020 EXHIBIT P3 COPY OF THE STAY PETITION FILED BY THE WP(C).No.8453 OF 2020(F) 5 PETITIONER BEFORE THE 2ND RESPONDENT DATED 11-03-2020 EXHIBIT P3 A COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 11-03-2020 EXHIBIT P3 B COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 11-03-2020 EXHIBIT P3 C COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 11-03-2020 EXHIBIT P3 D COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 11-03-2020

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