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

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WP(C)/7890/2020HC KeralaKLHC01020394202013 March 2020Author: HONOURABLE MR.JUSTICE V.G.ARUN3 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court of Kerala, considering the limited relief sought, disposed of the writ petition. The Court directed the 2nd respondent (Commissioner of Income Tax (Appeals)) to consider and pass orders on Exhibit P2 appeal as expeditiously as possible. Furthermore, the Court ordered that recovery proceedings based on Exhibit P1 assessment order shall stand deferred until orders are passed on the appeal. The primary reasoning was to ensure that the assessee's right to appeal is not rendered nugatory by immediate recovery actions, pending a decision on the merits of the appeal and the stay application.

What were the facts?

The petitioner, M/s. Karimkunnnam Service Co-operative Bank Ltd., is a Primary Agricultural Credit Co-operative Society. The petitioner received an assessment order (Exhibit P1) for the assessment year 2017-2018. In response, the petitioner filed an appeal (Exhibit P2) and a stay petition (Exhibit P3) before the Commissioner of Income Tax (Appeals). This writ petition was filed seeking an expeditious disposal of either the appeal or the stay petition and a deferment of recovery proceedings based on the assessment order until a decision is rendered on the appeal.

What were the issues?

1. Whether the writ petition is maintainable for seeking an expeditious disposal of an appeal and stay petition before the appellate authority? Assessee's Contention: The assessee, represented by its Secretary, sought an expeditious consideration of its appeal and stay petition and a deferment of recovery proceedings. The assessee relied on the principle that recovery should be stayed pending appeal, especially when a stay petition is filed. Revenue's Contention: The Standing Counsel for the Income Tax Department was heard. No specific arguments or reliance on authorities were recorded for the revenue in this judgment.

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.7890 OF 2020(I) PETITIONER/S: M/S. KARIMKUNNAM SERVICE CO-OPERATIVE BANK LTD. NO.2670, KARIMKUNNAM SCB BUILDING, PALA ROAD, KARIMKUNNAM P.O., THODUPUZHA-685 586 REPRESENTED BY ITS SECRETARY DEENA SEBASTIAN. BY ADV. SRI.S.ARUN RAJ RESPONDENT/S: THE INCOME TAX OFFICER WARD-1 & TPS, MAHIMA TOWERS, TEMPLE RAOD, THODUPUZHA-685 584. 2. THE COMMISSIONER OF INCOME TAX (APPEALS)-II, POORNIMA BUILDING, PANAMPILLY NAGAR, KOCHI-682 036. OTHER PRESENT: SC SRI.CHRISTOPHER ABRAHAM 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. 7890 of 2020 ----------------------------------------------- Dated this the 13th day of March, 2020

JUDGMENT As against Exhibit P1 assessment order for the year 2017-2018, the petitioner, a Primary Agricultural Credit Co-operative Society, has preferred Exhibit P2 appeal along with Exhibit P3 stay petition. The limited prayer in the writ petition is for an expeditious consideration of either the appeal or the stay petition and to defer the recovery proceedings on the basis of the assessment order till orders are passed on Exhibit P2 appeal.

2.

Heard the learned Standing Counsel for the Income Tax Department also.

3.

Considering the limited relief sought for, the writ petition is disposed of directing the 2nd respondent to consider and pass orders on Exhibit P2 appeal as expeditiously as possible. Till orders are passed on the appeal as directed above, the recovery proceedings based on Exhibit P1 assessment order shall stand deferred. V.G.ARUN, JUDGE vgs16.3

W.P(C).No. 7890 of 2020 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1: COPY OF ASSESSMENT ORDER DATED 17.12.2019 PASSED BY THE 1ST RESPONDENT UNDER SECTION 143(3) OF THE ACT FOR THE AY 2017-18. EXHIBIT P2: COPY OF FIRST APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE AY 2017-18. EXHIBIT P3: COPY OF STAY APPLICATION DATED 24.2.2020 FILED BEFORE THE 2ND RESPONDENT FOR THE AY 2017-18.

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