POOYAPPALLY SERVICE CO-OPERATIVE BANK LTD NO.3964 vs. THE INCOME TAX OFFICER WARD 2

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WP(C)/5073/2020HC KeralaKLHC01013911202024 February 2020Author: HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala directed the 2nd respondent, the Commissioner of Income Tax (Appeals), to dispose of the petitioner's appeal within a period of two months after issuing notice to the petitioner. Until 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% payment condition but provided interim relief by staying recovery and expediting the appeal process. The ratio of the decision is that in appropriate cases, the appellate authority can be directed to expedite the disposal of appeals and grant a stay on recovery pending such disposal, especially when the condition for stay appears to be a point of contention.

What were the facts?

The petitioner, Pooyappally 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 2nd respondent. The assessing authority mandated the payment of 20% of the disputed tax to obtain a stay against recovery while the appeal was pending. The petitioner approached the High Court of Kerala by way of a writ petition challenging this condition.

What were the issues?

1. Whether the condition imposed by the assessing authority for payment of 20% of the disputed tax to grant a stay against recovery, pending appeal, is legally sustainable? The petitioner contended that the appellate authority should dispose of the appeal expeditiously and that the condition for payment of 20% of the disputed tax is onerous. The revenue did not present any arguments in the judgment.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5073 OF 2020
W.A NO. 1639 OF 2019

Read from the judgment's own cause title. This page is filed under one of them.

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.5073 OF 2020(H) PETITIONER: POOYAPPALLY SERVICE CO-OPERATIVE BANK LTD NO.3964 MEEYANNOOR, POOYAPPALLY, P.O, KOLLAM DISTRICT-691 537 REPRESENTED BY ITS SECRETARY BY ADVS. SRI.M.SASINDRAN SRI.I.SREEHARI RESPONDENTS: 1 THE INCOME TAX OFFICER WARD 2 AAYAKAR BHAVAN, INCOME TAX OFFICE, NEAR KARBALA JUNCTION, RAILWAY STATION ROAD, KOLLAM 691 001 2 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, KOWDIAR,, THIRUVANANTHAPURAM 695 001 ADV. SRI.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.5073 OF 2020(H) 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. A.MUHAMED MUSTAQUE SAS/24/02/2020 JUDGE

WP(C).No.5073 OF 2020(H) 3

Appendix — schedule of exhibits
APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE REGISTRATION CERTIFICATE DATED 27-07-2015 ISSUED BY THE JOINT REGISTRAR (GENERAL) OF CO-OEPRATIVE SOCIETIES, KOLLAM EXHIBIT P2 A TRUE COPY OF THE CERTIFICATE ISSUED BY THE ASSISTANT REGISTRAR (GENERAL) CO- OPERATIVE SOCIETIES KOLLAM, DATED 06-12- 2018 EXHIBIT P3 A TRUE COPY OF THE ASSESSMENT ORDER DATED 18-12-2019 FOR THE ASSESSMENT YEAR 2017- 2018 EXHIBIT P4 A TRUE COPY OF THE DEMAND NOTICE DATED 18- 12-2019 EXHIBIT P5 A TRUE COPY OF THE APPEAL MEMORANDUM FILED BEFORE THE 2ND RESPONDENT EXHIBIT P6 A TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER DATED 13-02-2020 EXHIBIT P7 A TRUE COPY OF THE JUDGMENT IN W.A NO. 1639 OF 2019 RESPONDENTS' EXHIBITS:- NIL //TRUE COPY// P.A. TO JUDGE

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