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

WP(C)/5228/2020HC KeralaKLHC01014277202024 February 2020Author: HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala directed the 3rd respondent, the Commissioner of Income Tax (Appeals), to dispose of the appeal filed by the petitioner within a period of two months from the date of the order. Furthermore, the Court ordered that recovery proceedings against the petitioner shall be kept in abeyance until the disposal of the appeal. The reasoning behind this direction is to ensure that the pending appeal and stay application are addressed expeditiously, providing relief to the petitioner by halting recovery actions during this period. The ratio decidendi is that High Courts can direct appellate authorities to dispose of pending matters within a stipulated time frame, especially when accompanied by a stay application, to prevent undue hardship to the assessee.

What were the facts?

The petitioner, M/s. Aryanad Service Co-operative Bank Ltd., filed an appeal under the Income Tax Act before the 3rd respondent, the Commissioner of Income Tax (Appeals). Along with the appeal, the petitioner also filed a stay application. The appeal and the stay application were pending before the appellate authority. The present writ petition was filed before the High Court of Kerala seeking directions regarding the disposal of the pending appeal and stay application.

What were the issues?

1. Whether the High Court should direct the appellate authority to dispose of the pending appeal and stay application filed by the petitioner under the Income Tax Act? Assessee's Contention: The petitioner, a Co-operative Bank, has filed an appeal and a stay application before the Commissioner of Income Tax (Appeals). The petitioner seeks a direction from the High Court for the expeditious disposal of these pending matters. The petitioner relies on the general principle that appeals and stay applications should be dealt with promptly by the authorities. Revenue's Contention: The judgment does not record any specific contentions raised by the revenue. However, as the matter is a writ petition seeking a direction, the revenue would have been represented to respond to the petitioner's prayer.

AI-generated summary — verify with the full judgment below

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.5228 OF 2020(C) PETITIONER: M/S.ARYANAD SERVICE CO-OPERATIVE BANK LTD. NO.593, BANK BUILDING, ARYANAD, THIRUVANANTHAPURAM-695 542, REPRESENTED BY ITS SECRETARY ARUNGHOSH.S. BY ADV. SRI.S.ARUN RAJ RESPONDENTS: 1 THE INCOME TAX OFFICER WARD 2(3), AAYAKAR BHAWAN, FIRST FLOOR, KAWDIAR P.O., THIRUVANANTHAPURAM-695 003. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAWAN, KAWDIAR P.O., THIRUVANANTHAPURAM-695 003. 3 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAWAN, KAWDIAR P.O., THIRUVANANTHAPURAM-695 003. OTHER PRESENT: SRI.CHRISTOPHER ABRAHAM, SC FOR INCOME TAX. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

JUDGMENT Dated this the 24th day of February 2020 The petitioner, a Co-operative Bank, filed Ext.P2 appeal under the Income Tax Act before the 3rd respondent. The petitioner also moved a stay application as per Ext.P3. Having considered the pendency of the appeal and the stay application as above, the appellate authority is directed to dispose the appeal within a period of two months. Till then, recovery proceedings shall be kept in abeyance. This writ petition is disposed of as above. A.MUHAMED MUSTAQUE JUDGE smp

Appendix — schedule of exhibits

APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 11.12.2019 PASSED BY THE 1ST RESPONDENT UNDER SECTION 143(3) OF THE ACT FOR THE AY 2017-18. EXHIBIT P2 TRUE COPY OF THE FIRST APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT FOR THE AY 2017-18. EXHIBIT P3 TRUE COPY OF THE STAY APPLICATION DATED 13.01.2020 FILED BEFORE THE 1ST RESPONDENT FOR THE AY 2017-18. EXHIBIT P4 TRUE COPY OF THE JUDGMENT DATED 04.12.2019 PASSED BY THIS HONOURABLE COURT IN WPC NO.27295 OF 2019 IN SIMILAR CASE. EXHIBIT P5 TRUE COPY OF THE JUDGMENT DATED 13.02.2020 PASSED BY THIS HONOURABLE COURT IN WPC NO.4167 OF 2020 IN SIMILAR CASE. EXHIBIT P6 TRUE COPY OF THE JUDGMENT DATED 16.11.2019 PASSED BY THIS HONOURABLE COURT IN WPC NO.31037 OF 2019 IN SIMILAR CASE. RESPONDENTS' EXHIBITS: NIL. True Copy P.S to Judge smp

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