M/S.KOTTAYI SERVICE CO-OPERATIVE BANK LTD NO.F 1221 vs. INCOME TAX OFFICER

WP(C)/7506/2018HC KeralaKLHC01039096201806 March 2018Author: HONOURABLE MR. JUSTICE P.B.SURESH KUMAR4 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court directed the second respondent (Commissioner of Income Tax (Appeals)) to decide the stay application (Ext.P3) within two months from the date of receipt of a copy of the judgment. The Court also ordered that further proceedings for the realization of amounts covered by the assessment order (Ext.P1) shall be deferred until orders are passed on the stay application. The reasoning was based on the facts and circumstances presented, particularly the delay in deciding the stay petition and the commencement of recovery proceedings. The principle established is that courts can direct authorities to expedite decisions on pending applications, especially when such delays cause prejudice to the assessee and recovery actions are initiated prematurely.

What were the facts?

The petitioner, M/s. Kottayi Service Co-operative Bank Ltd, an assessee under the Income Tax Act, filed a writ petition before the High Court of Kerala. The petition was filed against the Income Tax Officer (Ward-5) and the Commissioner of Income Tax (Appeals). The petitioner was aggrieved by an assessment order dated December 20, 2016, for Assessment Year 2011-12. They had filed a statutory first appeal and a stay petition before the second respondent. The primary grievance in the writ petition was the delay by the second respondent in passing orders on the stay application. The petitioner also stated that recovery proceedings had commenced for the amounts demanded in the assessment order.

What were the issues?

1. Whether the High Court should issue directions for the expeditious disposal of the stay petition filed by the assessee, considering the delay in passing orders and the initiation of recovery proceedings? (Question of procedure and administrative delay) Assessee's Contention: The assessee argued that the delay in deciding the stay petition was causing prejudice, especially since recovery proceedings had already been initiated. They sought a direction for the timely disposal of their stay application. Revenue's Contention: The judgment records that the learned Standing Counsel for the respondents was heard, but it does not detail specific arguments made by the revenue regarding the delay or the stay petition.

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 P.B.SURESH KUMAR TUESDAY, THE 6TH DAY OF MARCH 2018 / 15TH PHALGUNA, 1939 WP(C).No. 7506 of 2018 PETITIONER(S) M/S.KOTTAYI SERVICE CO-OPERATIVE BANK LTD NO.F 1221 KOTTAYI.P.O., PALAKKAD- 678 572, REPRESENTED BY ITS SECRETARY, VIJAYAN MADATHIL BY ADV.SRI.S.ARUN RAJ RESPONDENT(S): 1. INCOME TAX OFFICER WARD-5, OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX, PALAKKAD RANGE, AAYAKAR BHAVAN, EC ROAD, PALAKKAD- 678 014. 2. THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, THRISSUR- 680 001. BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06-03-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 7506 of 2018 (K) APPENDIX PETITIONER(S)' EXHIBITS EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 20.12.2016 PASSED BY THE 1ST RESPONDENT AND THE DEMAND NOTICE FOR THE AY 2011-12 EXHIBIT P2 TRUE COPY OF THE STATUTORY FIRST APPEAL FILED BY THE PETITIONER SOCIETY BEFORE THE SECOND RESPONDENT FOR THE AY 2011-12 EXHIBIT P3 TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER SOCIETY BEFORE THE SECOND RESPONDENT FOR THE AY 2011-12 (true copy) Sd/- P.S. to Judge P.B.SURESH KUMAR, J. ----------------------------------------------- W.P.(C) No.7506 of 2018 ----------------------------------------------- Dated 6th March, 2018.

J U D G M E N T Petitioner is an assessee under the Income Tax Act (the Act) on the rolls of the first respondent. Aggrieved by Ext.P1 assessment order, the petitioner preferred Ext.P2 appeal before the second respondent. Ext.P3 is the application for stay preferred by the petitioner in Ext.P2 appeal. The grievance of the petitioner in the writ petition concerns the delay on the part of the second respondent in passing orders on Ext.P3 application for stay. It is alleged by the petitioner in the writ petition that proceedings have already been initiated for realisation of the amounts covered by Ext.P1 order. The petitioner, therefore, seeks appropriate directions in this regard, in this writ petition.

Heard the learned counsel for the petitioner as also the learned Standing Counsel for the respondents.

WPC No. 7506/18 2 Having regard to the facts and circumstances of the case, I deem it appropriate to dispose of the writ petition directing the second respondent to take a decision on Ext.P3 application for stay, within two months from the date of receipt of a copy of this judgment. Ordered accordingly. Needless to say that until orders are passed on Ext.P3 application for stay, further proceedings for realisation of the amounts covered by Ext.P1 assessment order shall be deferred. P.B.SURESH KUMAR, JUDGE. tgs

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