THE PATTAMBI SERVICE CO-OPERATIVE BANK LTD. NO.P 585 vs. THE INCOME TAX OFFICER,

WP(C)/5272/2020HC KeralaKLHC01014285202003 March 2020Bench: HONOURABLE MR. JUSTICE AMIT RAWAL6 pages

AI SummaryRemanded

What did the High Court hold?

The High Court held that the writ petitions would not lie, as the petitioner's remedy was to press the pending stay applications before the ITAT. However, considering that no steps for taking possession or demand/attachment proceedings under Section 281 of the Income Tax Act had been initiated, the Court disposed of the writ petitions with a direction to the ITAT. The ITAT was directed to consider and pass appropriate orders on the stay applications expeditiously, within 15 days of receiving a certified copy of the judgment. The principle established is that while the writ remedy may not be appropriate in such circumstances, the ITAT should be directed to expedite the disposal of stay applications when no immediate coercive action is evident.

What were the facts?

The petitioner, The Pattambi Service Co-operative Bank Ltd., filed writ petitions before the High Court of Kerala challenging orders of assessment (Ext.P1) and appellate orders (Ext.P2). The bank had preferred second appeals before the Income Tax Appellate Tribunal (ITAT) and filed interim applications (Ext.P4) seeking to keep coercive measures against it in abeyance until the appeals were decided. The revenue contended that the writ petitions were not maintainable, arguing that the petitioner's remedy lay in pursuing the pending stay applications before the ITAT. The High Court noted that the pleadings did not mention any steps for taking possession. It also observed that no demand or attachment proceedings under Section 281 of the Income Tax Act had been initiated.

What were the issues?

1. Whether the writ petitions are maintainable when the petitioner has pending stay applications before the Income Tax Appellate Tribunal (ITAT)? (Question of law). The petitioner's contention is that they have filed appeals before the ITAT and sought interim relief to prevent coercive measures. The revenue argues that the writ petitions are not maintainable, and the petitioner should press their pending stay applications before the ITAT. The revenue relies on the principle that alternative remedies should be exhausted before approaching the writ court. The judgment does not record any specific authorities or precedents relied upon by either side for this issue.

Which sections of the Income-tax Act were involved?

281

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5271 OF 2020

WP(C).5272/2020

Read from the judgment's own cause title. This page is filed under one of them.

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL TUESDAY, THE 03RD DAY OF MARCH 2020 / 13TH PHALGUNA, 1941 WP(C).No.5271 OF 2020(H) PETITIONER: THE PATTAMBI SERVICE CO-OPERATIVE ANK LTD.NO.P 585, RAZMALL COMPLEX, PALLIPURAM ROAD, PATTAMBI, PALAKKAD-679303, REPRESENTED BY ITS SECRETARY, C.GIRIJA, AGED 58, D/O.E.P.NARAYANAN NAIR. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD 3, AYAKAR BHAVAN, PALAKKAD-678014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN, THRISSUR-680001. 3 THE INCOME TAX APPELLATE TRIBUNAL, AYAKAR BHAVAN, KAKKANADU, KOCHI-682030, REPRESENTED BY ITS REGISTRAR. OTHER PRESENT: SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.03.2020, ALONG WITH WP(C).5272/2020(H), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).NoS.5271 & 5272 OF 2020 -2- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL TUESDAY, THE 03RD DAY OF MARCH 2020 / 13TH PHALGUNA, 1941 WP(C).No.5272 OF 2020(H) PETITIONER: THE PATTAMBI SERVICE CO-OPERATIVE BANK LTD. NO.P 585 RAZMALL COMPLEX, PALLIPURAM ROAD, PATTAMBI, PALAKKAD-679 303, REPRESENTED BY ITS SECRETARY, C.GIRIJA, AGED 58, D/O. E.P.NARAYANAN NAIR. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON SMT.K.KRISHNA RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD 3, AYAKAR BHAVAN, PALAKKAD-678 014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, THRISSUR-680 001. 3 THE INCOME TAX APPELLATE TRIBUNAL AYAKAR BHAVAN, KAKKANADU, KOCHI-682 030, REPRESENTED BY ITS REGISTRAR. OTHER PRESENT: SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.03.2020, ALONG WITH WP(C).5271/2020(H), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).NoS.5271 & 5272 OF 2020 -3- JUDGMENT The grievance of the petitioner in the instant case is that against the orders of assessment, Ext.P1 and appellate orders Ext.P2, preferred second appeals, Ext.P3 before the 3rd respondent ie., the Income Tax Appellate Tribunal (ITAT) along with the interim applications, Ext.P4 dated 7th February 2020, till such time, the contemplated coercive measures against the petitioner may be kept in abeyance. 2. Counsel for the Revenue submits that the writ petitions would not lie as the remedy for the petitioner is to press the pending stay applications before the ITAT. Having heard the learned counsel for the parties and apprised the paper book, I am of the view that the pleadings are bereft of any steps for taking of possession by making mention or otherwise before the ITAT. Be that as it may, considering the fact that no steps of demand or attachment proceedings under Section 281 of the Income

WP(C).NoS.5271 & 5272 OF 2020 -4- Tax Act have been initiated, I dispose of these writ petitions with a direction to 3rd respondent to consider and pass appropriate orders on the applications of stay in accordance with law, as expeditiously as possible within a period of 15 days from the date of receipt of a certified copy of this judgment. Sd/- AMIT RAWAL vv JUDGE

WP(C).NoS.5271 & 5272 OF 2020 -5- APPENDIX OF WP(C) 5271/2020 PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2013-14 DATED 28.03.2016. EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2013-14 DATED 10.12.2019. EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT 2013-14 DATED 07.02.2020. EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DATED 07.02.2020.

WP(C).NoS.5271 & 5272 OF 2020 -6- APPENDIX OF WP(C) 5272/2020 PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE IST RESPONDENT FOR THE YEAR 2015-16 DATED 20.11.2017. EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE IST RESPONDENT FOR THE YEAR 2015-16 DATED 10.12.2019. EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT 2015-16 DATED 7.2.2020. EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DATED 7.2.2020. //TRUE COPY// PA TO JUDGE

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