THE VELIYANNOOR SSERVICE CO-OPERATIVE BANK LTD.NO.K.282, vs. THE CENTRAL BOARD OF DIRECT TAXES,

WP(C)/5026/2020HC KeralaKLHC01013624202024 February 2020Author: HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala, in light of various judgments of the Court, directed the appellate authority (3rd respondent) to dispose of the appeal filed by the petitioner within a period of two months after issuing notice to the petitioner. Pending the disposal of the appeal, the recovery proceedings against the petitioner were ordered to be kept in abeyance. The Court 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 operative direction is to dispose of the appeal expeditiously and keep recovery proceedings in abeyance until then.

What were the facts?

The petitioner, The Veliyannoor Service Co-operative Bank Ltd., a co-operative society, filed an appeal before the 3rd respondent, 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 as a condition for granting a stay against recovery of the tax, pending the appeal. The petitioner challenged this condition and the subsequent proceedings through a writ petition before the High Court of Kerala.

What were the issues?

1. Whether the condition imposed by the assessing authority for granting a stay against recovery, requiring payment of 20% of the disputed tax, is legally sustainable pending appeal? (Question of law) Assessee's Contention: The petitioner, a co-operative society, implicitly challenges the 20% pre-deposit requirement for a stay, seeking relief from the High Court. The writ petition itself indicates a grievance against the recovery proceedings and the condition imposed. Revenue's Contention: The judgment does not record any specific arguments from the revenue's side regarding the 20% pre-deposit condition. However, the assessing authority's action implies reliance on the general power to impose conditions 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.5026 OF 2020(C) PETITIONER: THE VELIYANNOOR SSERVICE CO-OPERATIVE BANK LTD.NO.K.282, VELIYANNOOR P.O., KOTTAYAM DISTRICT-686 634 REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.SHAJI THOMAS SRI.JEN JAISON RESPONDENTS: 1 THE CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110 001, REPRESENTED BY ITS CHAIRMAN. 2 INCOME TAX OFFICER WARD 5, INCOME TAX OFFICE, PUBLIC LIBRARY BUILDING, SHASTRI ROAD, KOTTAYAM-686 001. 3 COMMISSIONER OF INCOME TAX (PPEALS) KOTTAYAM-686 001. ADV. SRI.JOSE JOSEPH 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.5026 OF 2020(C) 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 3rd 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-the 3rd 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.5026 OF 2020(C) 3 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1

TRUE PHOTOCOPY OF THE ASSESSMENT ORDER NO.ITBA/AST/S/143(3)/2019-20/1023421866(1) DATED 30.12.2019. EXHIBIT P2 TRUE PHOTOCOPY OF THE DEMAND NOTICE NO.ITBA/AST/S/156/2019-20/1023421961(1) DATED 30.12.2019 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P3 TRUE PHOTOCOPY OF THE APPEAL IN FORM 35 FILED BY THE PETITIONER DATED 25.1.2020 FOR THE YEAR 2017-18 BEFORE THE 3RD RESPONDENT. EXHIBIT P4 TRUE PHOTOCOPY OF THE APPLICATION FOR STAY DATED 4.2.2020 FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT. EXHIBIT P5 TRUE PHOTOCOPY OF THE DEMAND NOTICE DATED 31.1.2020 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P6 TRUE PHOTOCOPY OF THE JUDGMENT DATED 1.7.2019 IN W.A.NO.1529/2019 OF THIS HON'BLE COURT. RESPONDENTS' EXHIBITS:- NIL //// P.A. TO JUDGE

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