KOYYODE SERVICE CO-OPERATIVE BANK vs. THE INCOME TAX OFFICER,

WP(C)/31007/2019HC KeralaKLHC01081073201916 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.P8), held that all recovery proceedings pursuant to the impugned orders in the appeals before the third respondent (Commissioner of Income Tax (Appeals)) shall be kept in abeyance till the appeals are disposed of. The court did not delve into the merits of the disputed amount or the validity of the assessment itself. The reasoning is based on the precedent established in the earlier writ petition, which addressed the issue of keeping recovery proceedings in abeyance pending appeal. The operative direction is to keep recovery proceedings in abeyance. No issue was expressly left undecided.

What were the facts?

The petitioner, M/s. Koyyode Service Co-operative Bank, is a Primary Agricultural Credit Society. They are aggrieved by Ext.P7 order issued by the second respondent, the Principal Commissioner of Income Tax. This order directed the petitioner to pay 20% of the disputed amount. The petitioner had approached the High Court of Kerala by way of a writ petition. A similar issue concerning recovery proceedings pending appeal had been considered by the same court in W.P.(C) No.28170/2019, dated 23.10.2019, which was produced as Ext.P8. The present writ petition challenges the order demanding 20% of the disputed amount.

What were the issues?

1. Whether recovery proceedings pursuant to impugned orders in appeals before the Commissioner of Income Tax (Appeals) should be kept in abeyance until the appeals are disposed of? (Question of law and fact, turning on principles of natural justice and the Income Tax Act, 1961). Assessee's Contention: The petitioner, aggrieved by the order demanding 20% of the disputed amount, sought relief from the High Court. They relied on a previous judgment of the same court in W.P.(C) No.28170/2019 (Ext.P8) which dealt with a similar issue. Revenue's Contention: The judgment does not record any specific contentions made by the revenue in this particular writ petition. However, the impugned order was passed by the Principal Commissioner of Income Tax, demanding 20% of the disputed amount.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.31007 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.31007 OF 2019(A) PETITIONER/S: M/S.KOYYODE SERVICE CO-OPERATIVE BANK, KOYYODE P.O., KANNUR-670621, REPRESENTED BY ITS SECRETARY SHISNA T.C. BY ADVS. SRI.S.ARUN RAJ SRI. PAUL JOHN RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD-1, KANNUR RANGE, KANNUR- 670006. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, KOZHIKODE- 673001. 3 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, MANANCHIRA, KOZHIKODE-673001. 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.31007/2019(A) 2 JUDGMENT Dated this the 16th day of November 2019 The petitioner is a Primary Agricultural Credit Society. Aggrieved by Ext.P7 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.P8. In the light of Ext.P8 judgment, all recovery proceedings pursuant to the impugned orders in the appeals before the third respondent shall be kept in abeyance till the appeals are disposed of. The writ petition is disposed of as above. A.MUHAMED MUSTAQUE JUDGE ln

WP(C).No.31007/2019(A) 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 21.12.2015 PASSED BY THE 1ST RESPONDENT UNDER SECTION 143(3) OF THE ACT FOR THE AY 2013-14. EXHIBIT P2 TRUE COPY OF THE FIRST APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT FOR THE AY 2013-14. EXHIBIT P3 TRUE COPY OF THE ASSESSMENT ORDER DATED 18.12.2018 PASSED UNDER SECTION 143(3) FOR THE AY 2016-17. EXHIBIT P4 TRUE COPY OF THE FIRST APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT FOR THE AY 2016-17. EXHIBIT P5 TRUE COPY OF THE APPLICATION OF STAY FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE AY 2013-14. EXHIBIT P6 TRUE COPY OF THE APPLICATION OF STAY FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE AY 2016-17. EXHIBIT P7 TRUE COPY OF THE ORDER DATED 30.9.2019 PASSED BY THE 2ND RESPONDENT, COMMISSIONER OF INCOME TAX, KOZHIKODE DISPOSING THE STAY PETITIONS FOR THE AY 2013-14 AND 2016-17. EXHIBIT P8 TRUE COPY OF THE JUDGMENT DATED 23.10.2019 PASSED BY THIS HONOURABLE COURT IN WP(C) NO.28170 OF 2019 IN SIMILAR CASE. RESPONDENTS EXHIBITS:NIL. //TRUE COPY// P.A.TO JUDGE

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