ANDOORKONAM SERVICE CO-OPERATIVE BANK LTD. NO.3127, vs. THE INCOME TAX OFFICER

WP(C)/5588/2023HC KeralaKLHC01013334202320 February 2023Bench: HONOURABLE MR. JUSTICE T.R.RAVI4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala disposed of the writ petition by directing the petitioner to prefer an appeal, along with a stay petition and a delay condonation petition, before the National Faceless Appeal Centre. The Court instructed the petitioner to approach the Local Assessment Authority, who would provide a link for uploading the appeal within one week. If the appeal is filed within two weeks of receiving the link, it shall be considered, and the stay and delay condonation petitions shall be ordered at the earliest, within two months from the date of receipt of the appeal. Recovery steps were to be kept in abeyance until the consideration of the delay condonation and stay petitions by the Faceless Appeal Centre. The Court did not decide on the merits of the penalty order or the stay application itself, but rather on the procedural aspect of where to file the applications.

What were the facts?

The petitioner, Andoorkonam Service Co-operative Bank Ltd., filed a writ petition seeking a direction to the Income Tax Officer (1st respondent) not to proceed with the recovery of a demand based on a penalty order for the assessment year 2017-2018. The petitioner had filed a stay petition and a delay condonation application before the Commissioner of Income Tax (Appeals) (2nd respondent). The Standing Counsel for respondents 1 and 2 submitted that the appeal should be preferred before the National Faceless Appeal Centre, New Delhi, and therefore, the 2nd respondent could not consider the stay and delay condonation applications.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) has the jurisdiction to consider a stay petition and a delay condonation application when the appeal is to be preferred before the National Faceless Appeal Centre. Assessee's contention: The petitioner approached the Court seeking a direction to the 1st respondent not to proceed with recovery pending disposal of stay and delay condonation applications before the 2nd respondent. Revenue's contention: The Standing Counsel for respondents 1 and 2 submitted that the appeal must be preferred before the Faceless Appeal Centre, New Delhi, and the 2nd respondent cannot consider the stay and delay condonation applications.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI MONDAY, THE 20TH DAY OF FEBRUARY 2023 / 1ST PHALGUNA, 1944 WP(C) NO. 5588 OF 2023 PETITIONER: ANDOORKONAM SERVICE CO-OPERATIVE BANK LTD. NO.3127, REPRESENTED BY ITS SECRETARY, KEEZHAVOOR P.O, THIRUVANANTHAPURAM DISTRICT., PIN - 695584 BY ADVS. ARJUN RAGHAVAN T.R.HARIKUMAR RESPONDENTS: 1 THE INCOME TAX OFFICER NATIONAL FACELESS APPEAL CENTRE, NORTH BLOCK, DELHI., PIN - 110001 2 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM., PIN - 695003 3 THE TREASURY OFFICER SUB-TREASURY, KAZHAKOOTTAM, THIRUVANANTHAPURAM., PIN - 695582 4 THE KERALA STATE CO-OPERATIVE BANK REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER, P.B NO.6515, CO-BANK TOWERS, PALAYAM, THIRUVANATHAPURAM., PIN - 695033 SRI.CHRISTOPHER ABRAHAM,SC SRI. THOMAS ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.02.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 5588 OF 2023 2 T.R. RAVI, J. -------------------------------------------- W.P.(C).No.5588 of 2023 -------------------------------------------- Dated this the 20th day of February, 2023 JUDGMENT

Admit. Standing Counsel takes notice for respondents 1, 2 and 4. The Government Pleader takes notice for the 3rd respondent. 2. The petitioner has approached this Court praying for a direction to the 1st respondent not to proceed with recovery of the demand based on Ext.P2 penalty order for the year 2017-2018, till the disposal of Ext.P4 stay petition and Ext.P5 delay condonation application, by the 2nd respondent. The Standing Counsel for respondents 1 and 2 submits that the appeal has to be preferred before the Faceless Appeal Centre, New Delhi and Ext.P4 stay petition and Ext.P5 delay condonation application cannot be considered by the 2nd respondent. In view of the above submission, this writ petition is disposed of directing the petitioner to prefer an appeal along with stay petition and delay condonation petition before the Faceless Appeal Centre. The petitioner shall approach the Local Assessment Authority, who shall provide the petitioner with a link for uploading the appeal within one week from today. If the appeal is filed within two weeks of

WP(C) NO. 5588 OF 2023 3 receiving the link, the same shall be considered and the stay petition and delay condonation petition shall be ordered at the earliest, at any rate, within two months from the date of receipt of the appeal. The steps for recovery shall be kept in abeyance till the consideration of the delay condonation petition and stay petition by the Faceless Appeal Centre. Sd/- T.R.RAVI JUDGE LEK

WP(C) NO. 5588 OF 2023 4 APPENDIX OF WP(C) 5588/2023 PETITIONER EXHIBITS Exhibit-P1 A TRUE COPY OF THE JUDGMENT DATED 17-02-2020 IN WP(C) NO.4433 OF 2020 OF THIS HON'BLE COURT Exhibit-P2 A TRUE COPY OF THE PENALTY ORDER UNDER SECTION 271B ALONG WITH DEMAND NOTICE DATED 13-12-2021 ISSUED BY THE 1ST RESPONDENT Exhibit-P3 A TRUE COPY OF THE APPEAL FILED IN FORM NO.35 DATED 24-01-2023 BEFORE THE 2ND RESPONDENT Exhibit-P4 A TRUE COPY OF THE STAY PETITION FILED IN EXT-P3 APPEAL, DATED 11-02-2023 ALONG WITH ACKNOWLEDGEMENT Exhibit-P5 A TRUE COPY OF DELAY CONDONATION PETITION DATED NIL FILED IN EXHIBIT-P3 APPEAL ALONG WITH ACKNOWLEDGMENT Exhibit-P6 A TRUE COPY JUDGMENT DATED 08-07-2019 IN WP(C) NO.18484 OF 2019 OF THIS HON'BLE COURT Exhibit-P7 A TRUE COPY OF JUDGMENT DATED 24-02-2020 IN WP(C) NO.5205 OF 2020 OF THIS HON'BLE COURT

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