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

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WP(C)/31037/2019HC KeralaKLHC01081109201916 November 2019Author: HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, in light of its previous judgment in W.P.(C) No.28170/2019 (Ext.P5), held 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 reasoning is based on the principle established in the cited judgment, which addressed a similar situation. The operative direction is to stay recovery proceedings pending the appeal's disposal.

What were the facts?

The petitioner, Kanhirode Service Co-operative Bank Ltd., is a Primary Agricultural Credit Society. They are aggrieved by Ext.P4 order issued by the second respondent, the Principal Commissioner of Income Tax. This order directed the petitioner to pay 20% of the disputed amount demanded by the second respondent. The petitioner had approached the High Court of Kerala seeking relief. A similar issue had been considered by the High Court in W.P.(C) No.28170/2019, dated 23.10.2019, which was produced as Ext.P5.

What were the issues?

1. Whether recovery proceedings pursuant to the impugned order in the appeal before the third respondent (Commissioner of Income Tax (Appeals)) should be kept in abeyance until the appeal is disposed of. The petitioner contended that a similar issue was decided in their favour in a previous writ petition (Ext.P5). The revenue did not record any specific arguments in this regard, but the court considered the precedent.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.31037 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.31037 OF 2019(D) PETITIONER/S: KANHIRODE SERVICE CO-OPERATIVE BANK LTD., KANHIRODE P.O., KANNUR - 670592, REPRESENTED BY ITS SECRETARY PRADEEPAN K. BY ADV. SRI.S.ARUN RAJ 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 ABERAHAM, SC, FOR IT 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.31037/2019 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 the 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.31037/2019 3

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 31.12.2015 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 APPLICATION OF STAY FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE AY 2013-14. 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 2013-14 AND 2016-17. EXHIBIT P5 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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