YEROOR SERVICE CO-OPERATIVE BANK LTD NO. 1816, vs. CENTRAL BOARD OF DIRECT TAXES,

WP(C)/4131/2022HC KeralaKLHC01009117202208 February 2022Bench: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala, while considering the writ petition, acknowledged the petitioner's grievance regarding the potential for coercive proceedings before the adjudication of their stay petition. The Court found merit in the petitioner's apprehension. Accordingly, the Court directed the 3rd respondent (National Faceless Appeal Centre, Delhi) to consider and pass orders on the stay petition (Ext.P4) within a period of two months from the date of receipt of the judgment. Furthermore, the Court ordered that all coercive proceedings against the petitioner, pursuant to the demand notice (Ext.P3), shall be kept in abeyance until a decision is taken on the stay petition. No specific issue regarding the merits of the assessment or the appeal was decided.

What were the facts?

The petitioner, Yeroor Service Co-operative Bank Ltd., is aggrieved by an order of assessment for the assessment year 2018-2019, marked as Ext.P1. The petitioner has filed an appeal before the 3rd respondent, the National Faceless Appeal Centre (NFAC), Delhi (Ext.P2), and a petition for stay of proceedings (Ext.P4). The petitioner apprehends coercive recovery proceedings before the stay petition is considered. Consequently, the petitioner has filed this writ petition seeking intervention. The respondents are the Central Board of Direct Taxes and the Additional Commissioner of Income Tax, National Faceless Assessment Centre, Delhi.

What were the issues?

1. Whether the petitioner is entitled to a direction for the consideration of their stay petition before coercive proceedings are initiated? The petitioner's contention is that they have filed an appeal and a stay petition against the assessment order and apprehend coercive recovery actions before the stay petition is adjudicated. Therefore, they seek a direction for the expeditious disposal of the stay petition and a stay on coercive proceedings until then. The respondents, represented by Sri. Christopher Abraham, SC, have been heard. The judgment does not explicitly detail their arguments beyond their appearance and participation in the proceedings.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS TUESDAY, THE 8TH DAY OF FEBRUARY 2022 / 19TH MAGHA, 1943 WP(C) NO. 4131 OF 2022 PETITIONER : YEROOR SERVICE CO-OPERATIVE BANK LTD.NO.1816, YEROOR, ANCHAL, KOLLAM-691 312, REPRESENTED BY ITS SECRETARY SREELATHA.K.V. BY ADVS. K.P.PRADEEP SANAND RAMAKRISHNAN HAREESH M.R. RASMI NAIR T. T.T.BIJU T.THASMI M.J.ANOOPA RESPONDENTS : 1 THE CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110 001, REPRESENTED BY ITS CHAIRMAN. 2 ADDITIONAL COMMISSIONER OF INCOME TAX, INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110 003. 3 NATIONAL FACELESS APPEAL CENTRE (NFAC), DELHI, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110 003. BY SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.02.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 4131 OF 2022 2 BECHU KURIAN THOMAS, J. ----------------------------------- W.P.(C) No. 4131 of 2022 ------------------------------- Dated this the 8th day of February, 2022 JUDGMENT Aggrieved by Ext.P1 order of assessment relating to assessment year 2018-2019, petitioner has preferred an appeal before the 3rd respondent, a copy of which is produced as Ext.P2. A petition for stay of proceedings pursuant to the assessment order has also been filed as Ext.P4. Petitioner apprehends coercive proceedings to be effected even before the petition for stay is considered. Hence this writ petition. 2. Having considered the submissions of the counsel for the petitioner as well as the respondents, I am of the opinion that this writ petition itself can be disposed of with a direction. 3. Accordingly, there will be a direction to the 3rd respondent to consider and pass orders on Ext.P4 stay petition, within a period of two months from the date of receipt of a copy of this judgment. Till such a decision is taken, all coercive proceedings against the petitioner pursuant to Ext.P3 demand notice shall be kept in abeyance.

The writ petition is disposed of as above. Sd/- BECHU KURIAN THOMAS, JUDGE RKM

WP(C) NO. 4131 OF 2022 3 APPENDIX OF WP(C) 4131/2022 PETITIONER'S EXHIBITS : Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER NO. ITBA/AST/S/143(3)/2021-22/1032375989 (1) DATED 12.04.2021 ISSUED FOR THE YEAR 2018- 19 BY THE 2ND RESPONDENT TO THE PETITIONER. Exhibit P2 TRUE COPY OF THE APPEAL DATED 04.02.2022 FILED FOR THE YEAR 2018-19 BEFORE THE 3RD RESPONDENT. Exhibit P3 TRUE COPY OF THE DEMAND NOTICE NO. ITBA/AST/S/156/2021-22/1032376011(1) DATED 12.04.2021 ISSUED FOR THE YEAR 2018-19 BY THE 2ND RESPONDENT. Exhibit P4 TRUE COPY OF THE STAY APPLICATION FILED ON 04.02.2022 BEFORE THE 3RD RESPONDENT IN EXT. P2 APPEAL BY THE PETITIONER.

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