THE URUKUNNU SERVICE CO-OPERATIVE BANK LTD.NO.Q190 vs. THE INCOME TAX OFFICER

WP(C)/5063/2020HC KeralaKLHC01013846202024 February 2020Author: HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala directed the appellate authority (2nd respondent) to dispose of the appeal filed by the petitioner within a period of two months after issuing notice to the petitioner. Furthermore, the Court ordered that recovery proceedings against the petitioner shall be kept in abeyance until the disposal of the appeal. The Court's decision is based on the 'various judgments of this Court' which likely pertain to the principles governing stay orders and pre-deposit requirements in income tax appeals. The specific amount in dispute and the assessment year(s) are not recorded in the judgment. The Court did not explicitly decide on the legality of the 20% pre-deposit condition but provided interim relief by staying recovery pending appeal disposal.

What were the facts?

The petitioner, Urukunnu Service Co-operative Bank Ltd., filed an appeal before the Commissioner of Income Tax (Appeals) against an assessment order passed under the Income Tax Act. The assessing authority mandated the payment of 20% of the disputed tax to grant a stay on recovery proceedings pending the appeal. The co-operative bank challenged this condition by filing a writ petition before the High Court of Kerala.

What were the issues?

1. Whether the condition imposed by the assessing authority for payment of 20% of the disputed tax to grant a stay pending appeal is legally sustainable? Assessee's Contention: The petitioner, a co-operative society, implicitly challenges the 20% pre-deposit requirement for a stay, as it is the basis for their writ petition seeking relief from this condition. The petitioner relies on various judgments of the High Court of Kerala concerning stay orders and pre-deposit requirements. Revenue's Contention: The judgment does not explicitly record the revenue's contentions. However, the assessing authority's action of demanding 20% of the disputed tax suggests reliance on statutory provisions or departmental instructions that permit such pre-deposit for stay.

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 A.MUHAMED MUSTAQUE MONDAY, THE 24TH DAY OF FEBRUARY 2020 / 5TH PHALGUNA, 1941 WP(C).No.5063 OF 2020(G) PETITIONER: THE URUKUNNU SERVICE CO-OPERATIVE BANK LTD.NO.Q190 REPRESENTED BY ITS SECRETARY, URUKUNNU P.O, KOLLAM DISTRICT, PIN-691 329. BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENTS: 1 THE INCOME TAX OFFICER WARD-4, OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX, KOLLAM RANGE, AAYAKAR BHAVAN, KARBALA JUNCTION, KOLLAM, PIN-691 001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, PIN-695 003. CHRISTOPHER ABRAHAM SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.5063 OF 2020(G) 2 JUDGMENT Dated this the 24th day of February 2020 The petitioner, a co-operative society filed an appeal as against the assessment order under the Income Tax Act before the 2nd respondent. The assessing authority insisted payment of 20% of the disputed tax to grant stay against recovery, pending appeal. In the light of the various judgments of this Court, the appellate authority-2nd respondent is directed to dispose the appeal within a period of two months after issuing notice to the petitioner. Till then, the recovery proceedings shall be kept in abeyance. Ordered accordingly. The writ petition is disposed of as above. Sd/- A.MUHAMED MUSTAQUE SAS/24/02/2020 JUDGE WP(C).No.5063 OF 2020(G) 3 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 27.11.2019. EXHIBIT P2 A TRUE COPY OF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 27.11.2019. EXHIBIT P3 A TRUE COPY OF THE ONLINE APPEAL DATED 3.12.2019 ALONG WITH GROUNDS OF APEAL, FILED BEFORE THE 2ND RESPONDENT, AGAINST

EXT.P1 ASSESSMENT ORDER. EXHIBIT P4 AOF THE STAY PETITION FILED BY THE PETITIONER IN EXT.P3 APPEAL DATED 9.1.2020. EXHIBIT P5 AOF THE JUDGMENT DATED 19.7.2019 IN W.A.NO.1639 OF 2019. EXHIBIT P6 AOF THE JUDGMENT DATED 25.11.2019 IN WP(C) NO.31787 OF 2019. RESPONDENTS' EXHIBITS:- NIL //// P.A. TO JUDGE

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