M/S. KOTTAPPADI SERVICE CO-OPERATIVE BANK LTD vs. INCOME TAX OFFICER

WP(C)/25262/2016HC KeralaKLHC01072686201607 April 2017Bench: HONOURABLE MR.JUSTICE K.VINOD CHANDRAN3 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court of Kerala disposed of the writ petitions, making the interim order absolute. The Court held that since appeals were pending before the Commissioner of Income Tax (Appeals), there was no reason to keep the writ petitions pending. The recovery of the disputed tax demand was stayed until the appeals were disposed of. The Court's reasoning was based on the pendency of the appeals, implying that the recovery attempt was premature or inappropriate at that stage. The operative direction was to stay the recovery until the appellate proceedings concluded. No issues were expressly left undecided.

What were the facts?

The petitioner, M/s. Kottappadi Service Co-operative Bank Ltd., filed writ petitions challenging an assessment order for the Assessment Year 2013-2014, passed by the Income Tax Officer, Ward 1, Guruvayoor. The petitioner had filed an appeal before the Commissioner of Income Tax (Appeals) and a stay petition before the respondent. The respondent issued an order dated July 12, 2016, directing the petitioner to deposit 15% of the disputed demand. The petitioner sought to challenge this recovery attempt while their appeals were pending. An interim order was previously granted staying the recovery. The present judgment addresses the disposal of these writ petitions.

What were the issues?

1. Whether the recovery of tax demand should be stayed pending the disposal of appeals before the Commissioner of Income Tax (Appeals)? (Question of law and fact, concerning the recovery provisions under the Income Tax Act, 1961). Assessee's Contention: The assessee argued that recovery proceedings were being initiated while their appeals against the assessment order were pending before the appellate authority. They relied on the principle that recovery should generally be stayed when appeals are pending. Revenue's Contention: The judgment does not record any specific contentions made by the revenue in opposition to the stay of recovery. The revenue was represented, but their arguments on this specific issue are not detailed in the provided text.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN FRIDAY, THE 7TH DAY OF APRIL 2017/17TH CHAITHRA, 1939 WP(C).No. 25262 of 2016 (G) ---------------------------- PETITIONER : --------------------- M/S. KOTTAPPADI SERVICE CO-OPERATIVE BANK LTD., KOTTAPPADI P.O., THRISSUR-680 505.

BY ADVS.SRI.ANIL D. NAIR SRI.R.SREEJITH KUM.SOUMYA PRAKASH KUM.MEKHALA M.BENNY RESPONDENT : ------------------------- INCOME TAX OFFICER, WARD 1, GURUVAYOOR-680 101.

BY SRI.K.M.V.PANDALAI, SC SRI.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 07-04-2017,ALONG WITH WPC.NO.35827 OF 2016 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts

WP(C).No. 25262 of 2016 (G) ------------------------------------------ APPENDIX PETITIONER(S)' EXHIBITS: --------------------------------------- EXHIBIT-P1: TRUE COPY OF THE ASSESSMENT ORDER DT. 17.03.2016 FOR THE YEAR 2013-2014 TO THE PETITIONER BY THE RESPONDENT.

EXHIBIT-P2: TRUE COPY OF APPEAL FILED AND PENDING BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE A.Y. 2013-2014.

EXHIBIT-P3: TRUE COPY OF THE STAY PETITION FILED BEFORE THE RESPONDENT FOR THE A.Y. 2013-2014.

EXHIBIT-P4: TRUE COPY OF ORDER F.NO.AABAT322H-16 DATED 12.07.2016 ISSUED BY THE RESPONDENT.

EXHIBIT-P5: TRUE COPY OF OFFICE MEMORANDUM (F.NO.404/72/93-ITCC) DT. 29.2.2016.

RESPONDENT(S)' EXHIBITS: NIL ------------------------------------------- /TRUE COPY/ P.A.TO JUDGE sts

K. VINOD CHANDRAN, J - - - - - - - - - - - - -- - - - - - - - - - - - - - - - W.P(C) Nos. 25262 of 2016 G, 35827 of 2016 C, 37519 of 2016 L, 10162 of 2017 U, 10184 of 2017 W, 10195 of 2017 Y, 11186 of 2017 W, 11223 of 2017 C, 11795 of 2017 Y & 11833 of 2017 D - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 07th day of April, 2017 J U D G M E N T

The issue raised in the above writ petitions was the recovery attempted while the appeals were pending. The challenge was against the direction to deposit 15% . Interim order was granted staying that order. Since appeals are pending, there is no reason why the writ petitions be kept pending. Writ petitions are disposed of making the interim order absolute and staying the recovery till the appeals are disposed of. Writ petitions are disposed of. Sd/- (K. VINOD CHANDRAN, JUDGE) jma

//true copy// P.A to Judge

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