KALLIKADU SERVICE CO-OPERATIVE BANK LTD. NO.668, vs. THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE,

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WP(C)/2944/2020HC KeralaKLHC01008222202003 February 2020Author: HONOURABLE MR. JUSTICE ALEXANDER THOMAS4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala, in the interest of justice, directed the 3rd respondent (Commissioner of Income Tax (Appeals)) to take up and pass orders on the stay application (Ext.P-4) filed in the appeal (Ext.P-2) without much delay, preferably within six weeks from the date of production of a certified copy of the judgment. The court also ordered that until orders are passed on the stay application, further coercive steps for the enforcement of the impugned order will be kept in abeyance. The reasoning is based on ensuring that the petitioner's right to seek a stay is not rendered infructuous by premature recovery actions. The ratio decidendi is that a pending stay application should be disposed of expeditiously, and coercive steps should be held in abeyance during this period to protect the assessee's interests. No issue was expressly left undecided.

What were the facts?

The petitioner, Kallikadu Service Co-operative Bank Ltd., filed an appeal (Ext.P-2) and a stay petition (Ext.P-4) against an order (Ext.P-1). The petitioner's primary grievance was that despite the pending stay petition, the assessing authority initiated coercive recovery proceedings for the disputed amounts. The case came before the High Court of Kerala at Ernakulam. The court heard arguments from the petitioner's counsel and the Government Pleader for the respondents. The assessment year(s) and the specific amount in dispute were not explicitly stated in the provided text. The procedural history involves the filing of an appeal and a stay petition before the Commissioner of Income Tax (Appeals), followed by the initiation of recovery proceedings, leading to the present writ petition.

What were the issues?

1. Whether the 3rd respondent (Commissioner of Income Tax (Appeals)) should expedite the disposal of the stay application (Ext.P-4) filed in the appeal (Ext.P-2)? (Question of procedure and administrative efficiency). 2. Whether coercive recovery proceedings should be stayed pending the disposal of the stay application? (Question of mixed law and fact, concerning the balance of convenience and the petitioner's right to seek redressal). Assessee's Contentions: The petitioner argued that coercive recovery proceedings were initiated while their stay petition was pending, causing prejudice. They sought a direction for the expeditious disposal of the stay application and a stay on further recovery steps. Revenue's Contentions: The judgment records that the Government Pleader appeared for the respondents, but their specific contentions regarding the stay application or recovery proceedings are not detailed in the provided text.

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 ALEXANDER THOMAS MONDAY, THE 3RD DAY OF FEBRUARY 2020 / 14TH MAGHA, 1941 WP(C).No.2944 OF 2020(P) PETITIONER: KALLIKADU SERVICE CO-OPERATIVE BANK LTD. NO.668, MYLAKKARA, KALLIKAD, THIRUVANANTHAPURAM-695572, REPRESENTED BY ITS SECRETARY, VINOD KUMAR.B. BY ADVS. DR.K.P.PRADEEP SMT.T.THASMI RESPONDENTS: 1 THE CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110001, REPRESENTED BY ITS CHAIRMAN. 2 INCOME TAX OFFICER, WARD 2(4), AAYAKKAR BHAVAN, INCOME TAX, KOWADIAR, THIRUVANANTHAPURAM-695003. 3 COMMISSIONER OF INCOME TAX (APPEALS), THIRUVANANTHAPURAM, AAYAKAR BHAVAN, INCOME TAX OFFICE, KOWADIAR, THIRUVANANTHAPURAM-695003. SRI.CHRISTOPHER ABRAHAM, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ALEXANDER THOMAS, J. ------------------------- W.P.(C) No. 2944 of 2020 --------------------------- Dated this the 3rd day of February, 2020

J U D G M E N T Against Ext.P-1 order, the petitioner has filed Ext.P-2 appeal and Ext.P-4 stay petition. The petitioner's grievance is that during the pendency of the stay petition, coercive recovery proceedings have been initiated by the assessing authority for recovery of the disputed amounts.

2.

Heard Dr.K.P.Pradeep, learned counsel appearing for the petitioner and Smt.M.M.Jasmine, learned Government Pleader appearing for the respondents.

3.

After hearing both sides and after taking note of the facts and circumstances of the case, it is ordered in the interest of justice that the 3rd respondent shall take up the matters in Ext.P-4 stay application filed in Ext.P-2 appeal and after affording reasonable opportunity of being heard to the petitioner through authorised representative/counsel, if any, shall pass orders without much delay, preferably within a period of six weeks from the date of production of a certified copy of this judgment. Until orders are ..3.. thus passed on the abovesaid stay application, further coercive steps for enforcement of the impugned order will be kept in abeyance. With these observations and directions, the above Writ Petition (Civil) stands finally disposed of.

ALEXANDER THOMAS, JUDGE MMG ..4..

Appendix — schedule of exhibits
APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER NO.AADAK3837B/2017-18 DATED 18.12.2019 ISSUED FOR THE YEAR 2017-18 BY THE 2ND RESPONDENT. EXHIBIT P2 TRUE COPY OF THE APPEAL DATED 6.1.2020 FILED BEFORE THE 3RD RESPONDENT FOR THE ASSESSMENT YEAR 2017-18. EXHIBIT P3 TRUE COPY OF THE DEMAND NOTICE NO.PAN AADAK3837B/2017-18 DATED 18.12.2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P4 TRUE COPY OF THE STAY APPLICATION FILED ON 6.1.2020 BEFORE THE 3RD RESPONDENT IN EXT.P2 APPEAL.

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