THE KODUR SERVICE CO-OPERATIVE BANK LTD., F 1523 vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/3140/2019HC KeralaKLHC01008402201901 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 filed an appeal and a stay petition within the statutory timeline. The Court reasoned that procedural fairness requires the revenue authorities to await the decision of the appellate authority on the stay petition before proceeding with coercive recovery measures. Therefore, the Court directed the respondent authorities to defer any coercive steps until the Commissioner of Income Tax (Appeals) considers the stay petition. The Court also expressed hope that the stay petition would be disposed of expeditiously.

What were the facts?

The petitioner, Kodur Service Co-operative Bank Ltd., a co-operative society, filed an appeal before the Commissioner of Income Tax (Appeals) challenging an assessment order. The petitioner also filed a stay petition along with its appeal. The grievance ventilated in this writ petition is that the revenue authorities are initiating coercive steps for recovery of tax before the appellate authority has had an opportunity to decide on the stay petition. The petitioner sought intervention from the High Court to prevent such coercive actions.

What were the issues?

1. Whether the revenue authorities should be restrained from taking coercive steps for recovery of tax pending the decision of the appellate authority on the stay petition filed by the assessee? (Question of procedure and fairness) The petitioner argued that it has availed its statutory remedy by filing an appeal and a stay petition. It contended that procedural fairness dictates that coercive steps should not be taken before the appellate authority adjudicates on the stay application. The revenue's contentions were not recorded in the judgment.

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. 3140 of 2019 PETITIONER: THE KODUR SERVICE CO-OPERATIVE BANK LTD., F 1523 KODUR.P.O., MALAPPURAM DISTRICT, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, KOZHIKODE-673001. 2 THE INCOME TAX OFFICER, WARD(4), TIRUR-676001. SC SRI CHRISTOPHER ABRAHAM R1 & R2 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

WPC No.3140 of 2019 2 the stay 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.3140 of 2019 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 18.12.2018 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2016-17. EXHIBIT P2 COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE 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 10.01.2018 ISSUED BY THE ITAT, COCHIN BENCH. Css/

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