M/S. AECHOOR SERVICE CO-OPERATIVE BANK LTD vs. THE INCOME TAX OFFICER

WP(C)/31001/2019HC KeralaKLHC01081068201916 November 2019Author: HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala, in light of its previous judgment in W.P.(C) No. 28170/2019 (Ext.P5), decided that all recovery proceedings pursuant to the impugned order in the appeal before the third respondent (Commissioner of Income Tax (Appeals)) shall be kept in abeyance until the appeal is disposed of. The Court did not delve into the merits of the disputed amount or the appeal itself. The reasoning is based on precedent established in a similar case. The operative direction is to stay recovery proceedings pending the appeal's disposal. No issues were left undecided.

What were the facts?

The petitioner, M/s. Aechool Service Co-operative Bank Ltd., is a Primary Agricultural Credit Society. They are aggrieved by Ext.P4 order issued by the second respondent (Principal Commissioner of Income Tax), which directed them to pay 20% of the disputed amount. The petitioner had approached the High Court of Kerala by filing this Writ Petition (Civil) No. 31001 of 2019. A similar issue had been considered by the Court in W.P.(C) No. 28170/2019, dated 23.10.2019, which was produced as Ext.P5. The impugned order in Ext.P2 refers to an appeal before the third respondent (Commissioner of Income Tax (Appeals)).

What were the issues?

1. Whether recovery proceedings pursuant to the impugned order in the appeal before the third respondent should be kept in abeyance until the appeal is disposed of? Assessee's Contention: The petitioner sought to keep recovery proceedings in abeyance. They relied on Ext.P5 judgment of the High Court of Kerala in a similar case. Revenue's Contention: The judgment does not record any specific arguments made by the revenue. However, the impugned order (Ext.P4) directed the petitioner to pay 20% of the disputed amount, indicating the revenue's stance on recovery.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.31001 OF 2019

W.P.(C) No.28170/2019

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 SATURDAY, THE 16TH DAY OF NOVEMBER 2019 / 25TH KARTHIKA, 1941 WP(C).No.31001 OF 2019(A) PETITIONER/S: M/S. AECHOOR SERVICE CO-OPERATIVE BANK LTD., EACHUR P.O, KANNUR-670 591, REPRESENTED BY ITS SECRETARY P.P. SHAJI. BY ADVS. SRI.S.ARUN RAJ SRI.ARJUN S.RAJ RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD-1, KANNUR RANGE, KANNUR- 670 006. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, KOZHIKODE- 673 001. 3 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, MANANCHIRA, KOZHIKODE-673 001. BY SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16.11.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.31001/2019 2 JUDGMENT Dated this the 16th day of November 2019 The petitioner is a Primary Agricultural Credit Society. Aggrieved by Ext.P4 order of the second respondent, they approached this Court. By the said order, the petitioner was directed to pay 20% of the disputed amount demanded by the second respondent. A similar issue was considered by this Court in W.P.(C) No.28170/2019 dated 23.10.2019, produced as Ext.P5. In the light of Ext.P5 judgment, all recovery proceedings pursuant to the impugned order in Ext.P2 appeal before the third respondent shall be kept in abeyance till

the appeal is disposed of. The writ petition is disposed of as above. A.MUHAMED MUSTAQUE JUDGE ln

WP(C).No.31001/2019 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 18.12.2018 PASSED BY THE 1ST RESPONDENT UNDER SECTION 143(3) OF THE ACT FOR THE AY 2016-17. EXHIBIT P2 TRUE COPY OF THE FIRST APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT FOR THE AY 2016-17. EXHIBIT P3 TRUE COPY OF THE APPLICATION OF STAY FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE AY 2016-17. EXHIBIT P4 TRUE COPY OF THE ORDER DATED 30.09.2019 PASSED BY THE 2ND RESPONDENT, COMMISSIONER OF INCOME TAX, KOZHIKODE DISPOSING THE STAY PETITIONS FOR THE AY 2016-17 AND 2016-17. EXHIBIT P5 TRUE COPY OF THE JUDGMENT DATED 23.10.2019 PASSED BY THIS HON'BLE COURT IN W.P.(C) NO.28170 OF 2019 IN SIMILAR CASE. RESPONDENTS EXHIBITS:NIL. //TRUE COPY// P.A.TO JUDGE

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