THE ANGADIPPURAM SERVICE CO-OPERATIVE BANK LTD.NO.P.581, vs. THE COMMISSIONER OF INCOME TAX (APPEALS),

WP(C)/1303/2019HC KeralaKLHC01003556201931 January 2019Author: HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court held that the petitioner had exercised its statutory remedy by filing an appeal and a stay petition within the prescribed time. The Court found that procedural fairness necessitates that authorities should await the decision of the appellate authority on the stay petition before proceeding with coercive steps. Consequently, the writ petition was disposed of with a direction to the respondent authority to defer coercive steps until the Commissioner of Income Tax (Appeals) considers the stay petition. The Court also expressed hope that the stay petition would be disposed of expeditiously.

What were the facts?

The petitioner, Angadippuram Service Co-operative Bank Ltd., filed an appeal and a stay petition before the Commissioner of Income Tax (Appeals) against an assessment order. The bank alleged that the Income Tax authorities were initiating coercive steps before the appellate authority could decide on its stay petition. To address this grievance, the bank filed a writ petition before the High Court of Kerala. The High Court heard arguments from both the petitioner and the respondent's Standing Counsel.

What were the issues?

1. Whether the Income Tax authorities should defer coercive steps until the appellate authority decides on the stay petition filed by the assessee? (Question of procedure and fairness). Assessee's Contention: The petitioner argued that coercive steps were being taken prematurely, before the appellate authority had an opportunity to consider its stay petition. They sought a directive to halt such actions until the stay petition was decided. Revenue's Contention: The judgment does not record any specific arguments made by the revenue's Standing Counsel. However, their presence and participation in the hearing are noted.

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 DAMA SESHADRI NAIDU THURSDAY ,THE 31ST DAY OF JANUARY 2019 / 11TH MAGHA, 1940 WP(C).No. 1303 of 2019 PETITIONER/S: THE ANGADIPPURAM SERVICE CO-OPERATIVE BANK LTD.NO.P.581, ROSHNI PLAZA, ANGADIPPURAM, MALAPPURAM. REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN, KOZHIKODE, PIN-673001. 2 THE INCOME TAX OFFICER, WARD(4), TIRUR, PIN 676001. OTHER PRESENT: SC SRI. CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 31.01.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

J U D G M E N T The petitioner, a Co-operative Bank, questioned the Ext.P1 assessment order, before the first respondent. The petitioner filed an appeal and a stay petition, too. Ventilating its grievance that the -2- Income Tax authorities are taking coercive steps before the appellate authority could consider the stay petition in the appeal, the petitioner has filed this writ petition.

Heard the learned counsel for the petitioner and the learned Standing Counsel.

I reckon the petitioner has exercised on time its statutory remedy of filing an appeal. It appears that it has also filed a stay petition. Procedural fairness demands that the authorities may wait, before taking further steps, until the appellate authority decides on the stay petition. Therefore, I dispose of the writ petition directing the respondent authority to defer coercive steps until the first respondent considers the stay petition. I also hope that the first respondent will dispose of the stay petition expeditiously. DAMA SESHADRI NAIDU JUDGE JJJ -3-

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 18/12/2018 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2016-17. EXHIBIT P2 COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2016-17. EXHIBIT P3 COPY OF THE ORDER DATED 10/01/2018 ISSUED BY THE ITAT, COCHIN BENCH. EXHIBIT P4 COPY OF THE JUDGMENT IN WP(C)NO.3878 OF 2018 DATED 05/02/2018 RENDERED BY THIS HON'BLE COURT. EXHIBIT P5 COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2016-17

Recent GST High Court judgments

Search GST case law →