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

WP(C)/2430/2020HC KeralaKLHC01006844202029 January 2020Bench: HONOURABLE MR. JUSTICE ALEXANDER THOMAS4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala, in its writ jurisdiction, ordered that the Commissioner of Income Tax (Appeals) shall take up the stay application (Ext.P3) filed in the appeal (Ext.P2) and pass orders on it without undue delay, preferably within two months from the date of production of a certified copy of the judgment. Until such orders are passed on the stay application, further coercive steps for the enforcement of the impugned order will be kept in abeyance. The court did not decide the merits of the appeal or the stay petition itself but directed the appellate authority to expedite the decision on the stay application and provided interim relief by halting recovery proceedings.

What were the facts?

The petitioner, The Nagalassery Service Co-operative Bank Ltd., represented by its Secretary, filed a writ petition before the High Court of Kerala. The petitioner's grievance was that despite filing an appeal (Ext.P2) and a stay petition (Ext.P3) against an order (Ext.P1), the assessing authority had initiated coercive recovery proceedings for the disputed amounts. The writ petition sought to address this issue of alleged premature recovery actions while the stay application was pending.

What were the issues?

1. Whether coercive recovery proceedings can be initiated by the assessing authority during the pendency of a stay petition filed along with an appeal before the Commissioner of Income Tax (Appeals)? (Question of mixed law and fact, concerning the procedural fairness and the powers of the assessing authority under the Income Tax Act, 1961). Assessee's Contention: The petitioner argued that coercive recovery proceedings were being pursued prematurely, while their appeal and stay application were still under consideration by the appellate authority. They sought to halt these recovery actions until a decision on their stay petition was made. Revenue's Contention: The judgment does not record any specific contentions made by the revenue regarding the initiation of coercive recovery proceedings. The standing counsel for the respondents appeared and was heard.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE ALEXANDER THOMAS WEDNESDAY, THE 29TH DAY OF JANUARY 2020 / 9TH MAGHA, 1941 WP(C).No.2430 OF 2020(C) PETITIONER: THE NAGALASSERY SERVICE CO-OPERATIVE BANK LTD., KOOTANAD POST, KOOTTANAD, PATTAMBI, PALAKKAD-679533, REPRESENTED BY ITS SECRETARY, KRISHNAKUMAR.N., AGED 40, S/O.NARAYANAN NAIR. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD 3, AYAKAR BHAVAN, PALAKKAD-670014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), SAKTHAN NAGAR, THRISSUR-680021. ADV. SRI.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.01.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.2430 OF 2020(C) 2 ALEXANDER THOMAS, J. =========================== W.P(C) No.2430 of 2020 =========================== Dated this the 29th day of January, 2020 JUDGMENT Against Ext.P1 order, the petitioner has filed Ext.P2 appeal and Ext.P3 stay petition. The petitioner's grievance is that during the pendency of the stay petition, coercive recovery proceedings have been initiated by the assessing authority for recovery of the disputed amounts. 2. Heard Sri.Harisankar V.Menon, learned counsel appearing for the petitioner and Sri.Jose Joseph, learned standing counsel appearing for the respondents. 3. After hearing both sides and after taking note of the facts and circumstances of the case, it is ordered in the interest of justice that the 2 nd respondent shall take up the matters in Ext.P3 stay application filed in Ext.P2 appeal and after affording reasonable opportunity of being heard to the petitioner through their authorised representative/counsel, if any, shall pass orders on that application without much delay, preferably within a period of two months from the date of production of a certified copy of this

WP(C).No.2430 OF 2020(C) 3 judgment. Until orders are thus passed on the abovesaid stay application, further coercive steps for enforcement of the impugned order will be kept in abeyance. With these observations and directions, the above Writ Petition (Civil) stands finally disposed of. Sd/- ALEXANDER THOMAS JUDGE vgd

WP(C).No.2430 OF 2020(C) 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2017-18 DATED 17.12.2019. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT - 2017-18 DATED 4.1.2020. EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 4.1.2020.

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