KERALA GAZETTED OFFICERS CO-OPERATIVE SOCIETY LTD vs. THE INCOME TAX OFFICER

WP(C)/34580/2017HC KeralaKLHC01082525201730 October 20174 pages

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What did the High Court hold?

The High Court disposed of the writ petition with specific directions. Firstly, the second respondent (Commissioner of Income Tax (Appeals)) was directed to consider and pass orders on the petitioner's stay petition (Ext. P3) within a period of two months from the date of receipt of a copy of the judgment, after providing a hearing to the petitioner. Secondly, recovery steps for the amounts confirmed by the assessment order (Ext. P1) were to be kept in abeyance until orders were passed by the second respondent on the stay petition and communicated to the petitioner. The petitioner was also directed to furnish a copy of the writ petition and the judgment to the second respondent for further action. The core principle established is that recovery should be deferred pending the appellate authority's decision on a stay application, promoting procedural fairness.

What were the facts?

The petitioner, Kerala Gazetted Officers Co-operative Society Ltd., filed a writ petition before the High Court of Kerala. The petitioner had received an assessment order (Ext. P1) for the assessment year 2014-2015 from the Income Tax Officer, Ward - 2(1). Against this order, the petitioner filed an appeal (Ext. P2) and a stay petition (Ext. P3) before the Commissioner of Income Tax (Appeals), the second respondent. The petitioner contended that recovery steps were being taken by the respondents even before the stay petition was considered. The writ petition sought directions from the High Court regarding the pending appeal and stay petition.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to consider and pass orders on the stay petition filed by the petitioner, and if so, within what timeframe? 2. Whether recovery steps for the amounts confirmed by the assessment order should be kept in abeyance until the stay petition is decided? Assessee's Contention: The petitioner argued that recovery steps were being initiated by the revenue authorities prematurely, before the appellate authority had an opportunity to decide on the stay petition. They sought a direction for the expeditious disposal of the stay petition and a stay on recovery proceedings. Revenue's Contention: The judgment does not record any specific contentions made by the revenue's Standing Counsel. The revenue was represented by a Standing Counsel, but their arguments are not detailed in the provided text.

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Heard together (2 matters)

WP(C).No. 34580 of 2017

WP(C).NO.1275 OF 2016

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.K.JAYASANKARAN NAMBIAR MONDAY, THE 30TH DAY OF OCTOBER 2017/8TH KARTHIKA, 1939 WP(C).No. 34580 of 2017 (V) ---------------------------- PETITIONER(S): ------------- KERALA GAZETTED OFFICERS CO-OPERATIVE SOCIETY LTD. NO.T 424, REPRESENTED BY ITS SECRETARY, VAZHUTHACAUD P.O., THIRUVANANTHAPURAM- 695 014.

BY ADVS.SRI.V.G.ARUN SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN SRI.ADITHYA RAJEEV RESPONDENT(S): -------------- 1. THE INCOME TAX OFFICER, WARD - 2(1), OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX, RANGE-2, AAYAKAR BHAVAN, KOWDIAR P.O., THIRUVANANTHAPURAM DISTRICT-695 003. 2. THE COMMISSIONER OF INCOME TAX (APPEALS), THIRUVANANTHAPURAM - 695 003.

R BY SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30-10-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No. 34580 of 2017 (V) APPENDIX PETITIONER'S EXHIBITS: EXT.P1 : TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2014-2015 DATED 28.12.2016. EXT.P2 : TRUE COPY OF THE APPEAL MEMORANDUM FILED AGAINST EXT.P1 ASSESSMENT ORDER ALONG WITH COVERING LETTER DATED 09.01.2017. EXT.P3 : TRUE COPY OF THE STAY PETITION DATED 23.01.2017 FILED IN EXT.P2 APPEAL. EXT.P4 : TRUE COPY OF THE CONSOLIDATED DEMAND NOTICE NO.AACAK6865C/ITO/W-2(1)/TVM/2017-18 DATED 12.10.2017. EXT.P5 : TRUE COPY OF THE JUDGMENT DATED 20.01.2016 IN WP(C).NO.1275 OF 2016. RESPONDENT'(S) EXHIBITS: NIL // TRUE COPY// P A TO JUDGE sm/

A.K.JAYASANKARAN NAMBIAR, J. - - - - - - - - - - - - - - - - - - - - - - - - - - W.P.(C) No.34580 of 2017 - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 30th day of October, 2017 JUDGMENT Against Ext. P1 assessment order under the Income Tax Act, the petitioner has preferred Ext.P2 appeal together with Ext.P3 stay petition, before the 2nd respondent. It is the case of the petitioner that even prior to considering the stay petition, recovery steps are taken by the respondents against the petitioner for recovery of the amounts confirmed by Ext. P1 assessment order. 2. I have heard the learned counsel for the petitioner and also the learned Standing Counsel for the respondents. 3. On a consideration of the facts and circumstances of the case as also the submissions made across the Bar, I dispose the writ petition with the following directions: i) The 2nd respondent shall consider and pass orders on Ext.P3 stay petition within a period of two months from the date of receipt of a copy of this judgment, after hearing the petitioner. ii) Recovery steps for recovery of amounts confirmed against petitioner by Ext.P1 assessment order shall be kept in abeyance till orders are passed by the 2nd respondent as

W.P.(c).No.34580 of 2017 : 2 : directed above and communicated to the petitioner. iii) The petitioner shall produce a copy of the writ petition along with a copy of this judgment, before the 2nd respondent, for further action. Sd/- A.K.JAYASANKARAN NAMBIAR

JUDGE sm/

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