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

WP(C)/6262/2018HC KeralaKLHC01037852201826 February 2018Author: HONOURABLE MR. JUSTICE P.B.SURESH KUMAR4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the second respondent, the 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 until a decision is passed on the stay application, further proceedings for the realization of the amounts covered by the assessment order (Ext.P1) shall be deferred. The judgment does not record any decision on the merits of the assessment order or the stay petition itself, focusing solely on the procedural delay. The principle established is that the High Court can intervene to ensure timely disposal of statutory applications when there is an unreasonable delay, and can grant interim relief by deferring recovery proceedings.

What were the facts?

The petitioner, The Malampuzha Service Co-operative Bank Ltd., is an assessee under the Income Tax Act. They received an assessment order for the assessment year 2013-14 from the Income Tax Officer, the first respondent. Aggrieved by this order, the petitioner filed an appeal before the Commissioner of Income Tax (Appeals), the second respondent, along with a stay petition. The petitioner's grievance in this writ petition is the delay by the second respondent in passing an order on the stay application. Proceedings for realization of the amounts demanded in the assessment order had already been initiated, prompting the petitioner to seek directions from the High Court.

What were the issues?

1. Whether the High Court should issue directions for the expeditious disposal of the stay petition filed by the assessee before the Commissioner of Income Tax (Appeals)? (Mixed question of law and fact, concerning the principles of natural justice and administrative efficiency). Assessee's Contention: The assessee argued that there has been an undue delay in the disposal of their stay petition by the second respondent. They highlighted that recovery proceedings have already commenced, causing them prejudice. They sought appropriate directions from the High Court to expedite the decision on the stay application. Revenue's Contention: The learned Standing Counsel for the respondents appeared. No specific arguments or contentions from the revenue are recorded in the judgment regarding the delay or the merits of 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 MONDAY, THE 26TH DAY OF FEBRUARY 2018 / 7TH PHALGUNA, 1939 WP(C).No. 6262 of 2018 PETITIONER(S) THE MALAMPUZHA SERVICE CO-OPERATIVE BANK LTD, NO.P-907 KADUKKAMKUNNU, MALAMPUZHA, PALAKKAD-678 651, REPRESENTED BY ITS SECRETARY, PRATHEEP K.K. BY ADVS.SRI.HARISANKAR V. MENON SMT.MEERA V.MENON SMT.K.KRISHNA RESPONDENT(S): 1. THE INCOME TAX OFFICER INCOME TAX DEPARTMENT, WARD NO.1, PALAKKAD-678 001. 2. THE COMMISSIONER OF INCOME TAX (APPEALS) INCOME TAX DEPARTMENT, THRISSUR-680 001. R BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26-02-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 6262 of 2018 (G) APPENDIX PETITIONER(S)' EXHIBITS EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2013-14 DATED 24.03.2016. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 18.04.2016. EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 18.04.2016. RESPONDENT'S EXHIBITS : NIL //TRUE COPY// sd/- P.A.TO JUDGE SKS P.B.SURESH KUMAR, J. = = = = = = = = = = = = = W.P.(C).No.6262 of 2018 = = = = = = = = = = = = = Dated this the 26th day of February, 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 W.P. (c) No.6262/2018 -2- petitioner as also the learned Standing Counsel for the respondents. 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. SKS

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