KUNDAYAM SERVICE CO-OPERATIVE BANK LTD.NO.3259, vs. THE INCOME TAX OFFICER,

WP(C)/5070/2020HC KeralaKLHC01013722202024 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 (the second respondent) to dispose of the appeal filed by the petitioner within a period of two months after issuing notice to the petitioner. The Court further ordered that recovery proceedings against the petitioner shall be kept in abeyance until the disposal of the appeal. The judgment did not explicitly rule on the legality of the 20% pre-deposit condition itself but provided immediate relief by staying recovery and expediting the appeal process. The principle established is that in appropriate cases, the appellate authority can be directed to expedite appeals and stay recovery pending disposal, especially when the condition for stay is contested.

What were the facts?

The petitioner, Kundayyam Service Co-operative Bank Ltd., a co-operative society, filed an appeal against an assessment order under the Income Tax Act before the Commissioner of Income Tax (Appeals), the second respondent. The assessing authority demanded payment of 20% of the disputed tax as a condition for granting a stay against recovery of the remaining demand, pending the appeal. The petitioner 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, requiring payment of 20% of the disputed tax to grant a stay pending appeal, is legally sustainable? Assessee's Contention: The petitioner argued that the imposition of such a pre-condition for stay is onerous and potentially hinders their right to appeal. They relied on various judgments of the High Court of Kerala that have addressed similar issues regarding stay orders and pre-deposits. Revenue's Contention: The judgment does not record any specific contentions made by the revenue regarding the pre-condition for stay. The focus of the revenue's role in the proceedings appears to be the demand made by the assessing authority.

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.5070 OF 2020(G) PETITIONER: KUNDAYAM SERVICE CO-OPERATIVE BANK LTD.NO.3259, REPRESENTED BY ITS SECRETARY, KUNDAYAM P.O., PATHANAPURAM, KOLLAM DISTRICT, PIN-689 695. 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.5070 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.5070 OF 2020(G) 3 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 30.11.2019. EXHIBIT P2 A TRUE COPY OF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 30.11.2019. EXHIBIT P3 A TRUE COPY OF THE ONLINE APPEAL DATED 06.12.2019 ALONG WITH GROUNDS OF APPEAL 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 24.01.2020. EXHIBIT P5 AOF THE JUDGMENT DATED 19.07.2019 IN WA NO.1639 OF 2019. EXHIBIT P6 AOF THE JUDGMENT DATED 25.11.2019 IN WPC NO.31787 OF 2019. RESPONDENTS' EXHIBITS:- NIL //// P.A. TO JUDGE

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