THE MANGAD SERVICE COOPERATIVE BANK LTD., vs. INCOME TAX OFFICER,

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WP(C)/7838/2020HC KeralaKLHC01020519202013 March 2020Author: HONOURABLE MR.JUSTICE V.G.ARUN3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court considered the limited relief sought by the petitioner, which was for the expeditious disposal of the stay petition and to keep recovery proceedings in abeyance until an order is passed on the stay petition. The Court found merit in this limited prayer. Accordingly, the Court directed the second respondent, the Commissioner of Income Tax (Appeals), to consider the stay petition (Exhibit P3) and pass orders on its merits within a period of two months from the date of receipt of a copy of the judgment. Until such orders are passed on the stay petition, the recovery proceedings based on the assessment order (Exhibit P1) were ordered to be kept in abeyance. The Court did not decide on the merits of the assessment order or the appeal itself.

What were the facts?

The petitioner, The Mangad Service Co-operative Bank Ltd., is aggrieved by an assessment order for the assessment year 2017-2018, marked as Exhibit P1. To challenge this order, the petitioner filed an appeal (Exhibit P2) before the Commissioner of Income Tax (Appeals), the second respondent. Concurrently, a stay petition (Exhibit P3) was filed seeking a stay on recovery proceedings initiated based on the assessment order. The writ petition was filed with a limited prayer for the expeditious disposal of either the appeal or the stay petition and to maintain the status quo regarding recovery proceedings until a decision is reached.

What were the issues?

1. Whether the writ petition should be entertained for the limited prayer of expeditious consideration of the appeal or stay petition, and for keeping recovery proceedings in abeyance. Assessee's Contention: The petitioner, The Mangad Service Co-operative Bank Ltd., sought an order from the High Court directing the Commissioner of Income Tax (Appeals) to expedite the decision on their pending appeal or stay petition and to halt recovery actions until such a decision is made. The petitioner relied on the principle that recovery should be stayed pending the disposal of appeals, especially when the appeal is filed promptly. Revenue's Contention: The learned Standing Counsel for the Income Tax Department was heard. No specific arguments were recorded regarding the merits of the appeal or stay petition, but the revenue was present and heard in the proceedings.

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.7838 OF 2020(D) PETITIONER/S: THE MANGAD SERVICE COOPERATIVE BANK LTD., MANGAD, MANGAD P.O., KOLLAM, PIN-691 015, REPRESENTED BY ITS SECRETARY, D.SREELEKHA, AGED 48 YEARS, D/O.DHAMODHARAN, SECRETARY, MANGAD SERVICE CO-OPERATIVE BANK, MANGAD P.O., KOLLAM. BY ADVS. SRI.A.JANI(KOLLAM) SMT.NISA FASIL SRI.SAJU WAHAB SMT.SUCHA BOSE S. RESPONDENT/S: 1 INCOME TAX OFFICER, WARD 4, OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX, KOLLAM RANGE, AAYANKAR BHAVAN, KARBALA JUNCTION, KOLLAM-691 001. 2 THE COMMISSIONER OF INCOME TAX(APPEALS) OFFICE OF CHIEF COMMISSIONER OF INCOME TAX (APPEALS), AYYANKAR BHAVAN, KAWADIYAR JUNCTION, THIRUVANANTHAPURAM-695 003. OTHER PRESENT: SC 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. 7838 of 2020 ----------------------------------------------- Dated this the 13th day of March, 2020

JUDGMENT Aggrieved by Exhibit P1 assessment order for the year 2017-2018, the petitioner has preferred Exhibit P2 appeal before the 2nd respondent. The petitioner has also filed Exhibit P3 stay petition seeking stay of the recovery proceedings based on Exhibit P1 order. The limited prayer in the writ petition is for expeditious consideration of either Exhibit P2 appeal or Exhibit P3 stay petition and to keep the recovery proceedings in abeyance till such time.

2.

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

3.

Considering the limited relief sought for, I am inclined to dispose of the writ petition directing the 2nd respondent to consider Exhibit P3 stay petition and pass orders on merits within a period of two months from the date of receipt of a copy of this judgment. Till orders are passed on Exhibit P3, recovery proceedings based on Exhibit P1 assessment order shall be kept in abeyance. V.G.ARUN, JUDGE vgs16.3

W.P(C).No. 7838 of 2020

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF ASSESSMENT ORDER DATED 30.11.2019 ISSUED BY FIRST RESPONDENT. EXHIBIT P2 TRUE COPY OF APPEAL AGAINST EXHIBIT P1 PREFERRED ON 24.12.2019 BEFORE SECOND RESPONDENT. EXHIBIT P3 TRUE COPY OF STAY PETITION IN EXHIBIT P2 APPEAL DATED 03.03.2020.

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