PAZHAYANNUR FARMERS SERVICE CO-OPERATIVE BANK LTD NO.71, vs. INCOME TAX OFFICER,

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WP(C)/7899/2020HC KeralaKLHC01020361202013 March 2020Author: HONOURABLE MR.JUSTICE V.G.ARUN3 pages
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What did the High Court hold?

The High Court considered the limited relief sought by the petitioner. It directed that the appeal (Exhibit P3) be considered as expeditiously as possible. Furthermore, the Court ordered that no recovery would be made based on the assessment order (Exhibit P1) until the appeal was decided. The demand for remittance of 20% of the assessed tax as per Exhibit P4 was also stayed until the appeal's disposal. The Court did not decide on the merits of the assessment order itself, focusing solely on the procedural aspect of recovery pending appeal.

What were the facts?

The petitioner, Pazhayannur Farmers Service Co-operative Bank Ltd., had an assessment order (Exhibit P1) passed against it. The petitioner filed an appeal (Exhibit P3) against this assessment order. While the appeal was pending, the petitioner received a demand notice (Exhibit P4) requiring remittance of 20% of the assessed tax. The writ petition was filed seeking expeditious disposal of the appeal and a stay on recovery proceedings until the appeal was decided.

What were the issues?

1. Whether the recovery proceedings based on the assessment order should be deferred until the appeal is decided? (Question of law) The petitioner argued for expeditious consideration of its appeal and a stay on recovery proceedings pending the appeal's decision. The revenue, represented by the Standing Counsel, was heard. No specific arguments for the revenue were recorded beyond their presence and representation.

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 V.G.ARUN FRIDAY, THE 13TH DAY OF MARCH 2020 / 23RD PHALGUNA, 1941 WP(C).No.7899 OF 2020(J) PETITIONER/S: PAZHAYANNUR FARMERS SERVICE CO-OPERATIVE BANK LTD NO.71, PAZHAYANNUR.P.O., THRISSUR-680587, REPRESENTED BY ITS MANAGING DIRECTOR. BY ADVS. SRI.C.A.JOJO SRI.MATHEWS JOSEPH RESPONDENT/S: 1 INCOME TAX OFFICER, WARD-2(4), RANGE-2, AYANKAR BHAVAN, SHAKTHANTHAMPURAN NAGAR, PIN-680001, THRISSUR DISTRICT. 2 COMMISSIONER OF INCOME TAX (APPEALS), OFFICE OF THE COMMISSIONER OF INCOME TAX, THRISSUR H.P.P.O, PIN-680001. OTHER PRESENT: SC JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: V.G.ARUN, J. ----------------------------------------------- W.P(C).No. 7899 of 2020 ----------------------------------------------- Dated this the 13th day of March, 2020

JUDGMENT As against Exhibit P1 assessment order, the petitioner has preferred Exhibit P3 appeal. Pending consideration of the appeal, the petitioner has been served with Exhibit P4 demanding remittance of 20% of the tax assessed. The prayer in the writ petition is for expeditious consideration of the appeal and to defer the recovery proceedings based on the assessment order till the appeal is decided.

2.

Heard the learned Standing Counsel for the Income-tax Department also.

3.

Considering the limited relief sought, the writ petition is disposed of directing Exhibit P3 appeal to be considered as expeditiously as possible. Till the appeal is decided as directed above, there shall not be any recovery on the basis of Exhibit P1 assessment order and there shall not be any insistence to remit the 20% as demanded in Exhibit P4. V.G.ARUN, JUDGE vgs16.3

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR AY 2012-13 DATED 11.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 AOF THE DEMAND NOTICE U/S.156 DATED 11.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 AOF THE APPEAL FOR AY 2012-13 DATED 24.2.2020 BEFORE THE 2ND RESPONDENT. EXHIBIT P4 AOF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 9.3.2020 FOR 20% OF TAX.

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