PONNANI SERVICE CO-OPERATIVE BANK LIMITED NO.4841 vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/3139/2019HC KeralaKLHC01008373201901 February 2019Bench: HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court acknowledged that the petitioner had availed its statutory remedy by filing an appeal and a stay petition on time. The Court held that procedural fairness necessitates that the revenue authorities should wait before taking further coercive steps until the appellate authority has decided on the stay petition. The Court directed the respondent authority to defer coercive steps until the first respondent (Commissioner of Income Tax (Appeals)) considers the stay petition. The Court also expressed hope that the first respondent would dispose of the stay petition expeditiously. No specific finding was made on the merits of the assessment order or the stay petition itself, as the writ petition was disposed of on procedural grounds.

What were the facts?

The petitioner, Ponnani Service Co-operative Bank Limited, a co-operative society, challenged an assessment order before the Commissioner of Income Tax (Appeals). The petitioner also filed a stay petition along with its appeal. The grievance raised in this writ petition is that the revenue authorities were initiating coercive steps before the appellate authority could decide on the stay petition. The petitioner sought intervention from the High Court to prevent such actions.

What were the issues?

1. Whether the revenue authorities should defer coercive steps until the appellate authority decides on the stay petition filed by the assessee? (Question of procedure and fairness) Assessee's Contention: The petitioner argued that coercive steps should not be taken while a stay petition is pending before the appellate authority, as this would prejudice their case and render the appeal ineffective. They relied on the principle of procedural fairness. Revenue's Contention: The judgment does not record any specific contentions made by the revenue authorities.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU FRIDAY,THE 01ST DAY OF FEBRUARY 2019 / 12TH MAGHA, 1940 WP(C).No. 3139 of 2019 PETITIONER: PONNANI SERVICE CO-OPERATIVE BANK LIMITED NO.4841 PONNANI, MALAPPURAM DISTRICT BY ADV. SRI.O.D.SIVADAS RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, KOZHIKODE-673 001 2 THE INCOME TAX OFFICER, WARD (4),TIRUR-676 001 OTHER PRESENT: SC SRI CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.02.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: JUDGMENT The petitioner, a Co-operative Society registered under the Kerala Co- operative Societies Act, questioned the Ext.P1 assessment order, before the first respondent. The petitioner has also filed a stay petition in the appeal. Ventilating its grievance that the authorities are taking coercive steps before the appellate authority could considers the stay

WPC No.3139 OF 2019 2 petition in the appeal, the petitioner has filed this writ petition. 2. Heard the learned counsel for the petitioner and the learned Government Pleader. 3. I reckon the petitioner has exercised on time its statutory remedy of filing an appeal. It appears that it has also filed a stay petition. Procedural fairness demands that the authorities may wait, before taking further steps, until the appellate authority decides on the stay petition. Therefore, I dispose of the writ petition directing the respondent authority to defer coercive steps until the first respondent considers the stay petition. I also hope that the first respondent will dispose of the stay petition expeditiously. Sd/- DAMA SESHADRI NAIDU JUDGE

WPC No.3139 OF 2019 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 17.12.2018 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2016-17 EXHIBIT P2 COPY OF THE ASSESSMENT ORDER DATED 17.12.2018 ISSUED BY THE 1ST RESPONDENT FOR THE PERIOD 2016-17 EXHIBIT P3 COPY OF THE STAY PETITION FILED IN THE APPEAL FILED BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2016-17 EXHIBIT P4 COPY OF THE SAID ORDER DATED 10.01.20198 ISSUED BY THE ITAT,COCHIN BENCH Css/

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