KORANGRAPADY CO-OPERATIVE AGRICULTURAL SOCIETY LTD vs. COMMISSIONER OF INCOME TAX (APPEALS)

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WP/14362/2025HC KarnatakaKAHC01032730202516 July 2025Bench: SURAJ GOVINDARAJ9 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petitions. The Court directed the first Appellate Authority (Respondent No. 1) to consider and pass necessary orders on the applications for stay filed by the petitioners in their respective appeals expeditiously, preferably within 15 days. Furthermore, the petitioners were directed to appear before the Principal Commissioner of Income Tax on August 4, 2025, at 2:30 PM. This authority was then directed to consider the applications for stay and dispose of them within 30 days thereafter. The Court acknowledged that when an application for stay is filed along with appeal papers, the Appellate Authority is required to consider it, as failure to do so could render the appeal infructuous. The primary relief sought by the petitioners, which was to quash the rectification orders, was not directly addressed on merits, but the process for obtaining a stay pending appeal was expedited.

What were the facts?

The petitioners, Barkur Vyavasaya Seva Sahakari Sangha Ltd., Ulloor Machattu Vyavasaya Seva Sahakari Sangha, and Korangrapady Co-operative Agricultural Society Ltd., filed writ petitions before the High Court of Karnataka. The petitions challenged rectification orders passed by the Income Tax Officer (Respondent No. 3) and sought quashing of these orders. Alternatively, they prayed for a writ of mandamus directing the Commissioner of Income Tax (Appeals) (Respondent No. 1) to expeditiously dispose of their pending appeals and to refrain from making any demand for income tax until the appeals are decided. The core grievance was the rejection of their applications filed under Section 220(6) of the Income Tax Act, 1961, to keep proceedings in abeyance pending their appeals.

What were the issues?

1. Whether the High Court, in its writ jurisdiction under Articles 226 and 227 of the Constitution, should quash the rectification orders passed by the Income Tax Officer. 2. Whether the High Court should issue a writ of mandamus directing the Commissioner of Income Tax (Appeals) to expedite the disposal of the pending appeals and stay any demand for income tax. Assessee's Contentions: The petitioners argued that the orders passed against them were without jurisdiction, and therefore, no further proceedings should be taken. They had filed appeals challenging these orders along with applications for stay, which had not been considered. Consequently, they filed applications under Section 220(6) of the Act. They contended that once an appeal is filed, the Appellate Authority should consider the matter, as all proceedings and papers are before it. They also argued that if stay applications are not considered, the very purpose of filing an appeal would be lost, rendering the appeal infructuous. Revenue's Contentions: No specific contentions for the revenue were recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 220(6)

AI-generated summary — verify with the full judgment below

Heard together (3 matters)

WP No. 14364 of 2025
WP No. 14351 of 2025
WP No. 14362 of 2025

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

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HC-KAR NC: 2025:KHC:26532 WP No. 14364 of 2025 C/W WP No. 14351 of 2025 WP No. 14362 of 2025

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

WRIT PETITION NO. 14364 OF 2025 (T-IT) C/W WRIT PETITION NO. 14351 OF 2025 (T-IT) WRIT PETITION NO. 14362 OF 2025 (T-IT)

IN WP No. 14364/2025

BETWEEN:

BARKUR VYAVASAYA SEVA SAHAKARI SANGHA LTD. (REGD. UNDER KCS ACT, 1959), BARKUR, BRAHMAVARA TALUK UDUPI DISTRICT - 576 246 REP. BY ITS C.E.O. - MR. GANESH …PETITIONER (BY SRI. MAHESH R UPPIN, ADVOCATE)

AND:

1.

COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, ROOM NO.356, C.R BUILDING I.P. ESTATE NEW DELHI - 110002

Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA

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HC-KAR NC: 2025:KHC:26532 WP No. 14364 of 2025 C/W WP No. 14351 of 2025 WP No. 14362 of 2025

2.

ASSESSING OFFICER NATIONAL FACELESS ASSESSMENT CENTRE DELHI - 110002

3.

INCOME TAX OFFICER WARD - 1 AND TPS, AAYAKAR BHAVAN AADI-UDUPI MALPE ROAD, UDUPI - 576103 …RESPONDENTS (BY SRI. THIRUMALESH, ADV. FOR R1 TO 3 V/O DATED 09.07.2025)

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE RECTIFICATION ORDER DTD. 18.03.2025 BEARING NO. ITBA/REC/S/156-1/2024- 25/1074649218(1) PASSED BY THE R-3 MARKED AS ANNX-E BY ISSUING A WRIT IN THE NATURE OF CERTIORARI.

IN WP NO. 14351/2025

BETWEEN:

ULLOOR MACHATTU VYAVASAYA SEVA SAHAKARI SANGHA (A SOCIETY REGD. UNDER KCS ACT, 1959), ULOOR, KUNDAPURA UDUPI DISTRICT - 576 229 REP. BY ITS C.E.O. PRABHKAR ACHARYA ...PETITIONER (BY SRI. MAHESH R. UPPIN, ADVOCATE)

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HC-KAR NC: 2025:KHC:26532 WP No. 14364 of 2025 C/W WP No. 14351 of 2025 WP No. 14362 of 2025

AND:

1.

COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, ROOM NO.356, C.R BUILDING, I.P. ESTATE NEW DELHI - 110002

2.

ASSESSING OFFICER NATIONAL FACELESS ASSESSMENT CENTRE DELHI - 110002

3.

INCOME TAX OFFICER WARD - 1 & TPS AAYAKAR BHAVAN AADI-UDPI MALPE ROAD, UDUPI - 576103 ...RESPONDENTS (BY SRI. THIRUMALESH, ADV.)

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE RECTIFICATION ORDER DTD. 25.02.2025 BEARING DIN AND ORDER NO. ITBA/REC/S/154-1/2024-25/1073708309(1) PASSED BY THE R-3 MARKED AS ANNX-E BY ISSUING A WRIT IN THE NATURE OF CERTIORARI.

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HC-KAR NC: 2025:KHC:26532 WP No. 14364 of 2025 C/W WP No. 14351 of 2025 WP No. 14362 of 2025

IN WP NO. 14362/2025

BETWEEN:

KORANGRAPADY CO-OPERATIVE AGRICULTURAL SOCIETY LTD. (A SOCIETY REGD. UNDER KCS ACT, 1959) HEAD OFFICE: KUKKIKATTE, 76 BADAGABETTU VILLAGE, KUKKIKATTE, UDUPI TALUK UDUPI DISTRICT-576101 REP. BY ITS CEO VIJAYALAKSHMI AGED 57 YEARS ...PETITIONER (BY SRI. GOPIKRISHNA RAO M., ADVOCATE)

AND:

1.

COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, ROOM NO.356 C R BUILDINGS I P ESTATE NEW DELHI-110002

2.

ASSESSING OFFICER NATIONAL FACELESS ASSESSMENT CENTRE, DELHI-110002

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HC-KAR NC: 2025:KHC:26532 WP No. 14364 of 2025 C/W WP No. 14351 of 2025 WP No. 14362 of 2025

3.

INCOME TAX OFFICER WARD 1 AND TPS AAYAKAR BHAVAN, AADI-UDUPI MALPE ROAD UDUPI-576103 ...RESPONDENTS (BY SRI. THIRUMALESH, ADV.)

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE RECTIFICATION ORDER DTD. 07.03.2025 BEARING DIN AND ORDER NO. ITBA/REC/S/154-1/2024-25/1074196428(1) PASSED BY THE R-3 MARKED AS ANNX-E BY ISSUING A WRIT IN THE NATURE OF CERTIORARI.

THESE PETITIONS, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

ORAL ORDER

1.

The petitioner in W.P.No.14364/2025 is before this court seeking for the following reliefs: "i) Quash the Rectification Order dt:18.03.2025 bearing No.ITBA/REC/S/154_1/2024- 25/1074648476(1) passed by the 3rd Respondent marked as ANNEXURE "E" by issuing a writ in the nature of Certiorari;

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HC-KAR NC: 2025:KHC:26532 WP No. 14364 of 2025 C/W WP No. 14351 of 2025 WP No. 14362 of 2025

OR IN THE ALTERNATIVE ii) issue a writ in the nature of mandamus by directing the 1st Respondent to dispose off the appeal ANNEXURE - G filed by the Petitioner in an expeditious manner and till the disposal of the said appeal, not to make any demand of Income Tax from the petitioner; and iii) grant such other relief as may be deemed fit to grant under the circumstances of the case in the interest of equity and justice."

2.

The petitioner in W.P.No.14351/2025 is before this Court seeking for the following reliefs: "i) Quash the Rectification Order dt:25.02.2025 bearing DIN & Order No:ITBA/REC/S/154_1/2024- 25/1073708309(1) passed by the 3rd Respondent marked as ANNEXURE "E" by issuing a writ in the nature of Certiorari; OR IN THE ALTERNATIVE ii) issue a writ in the nature of mandamus by directing the 1st Respondent to dispose off the appeal ANNEXURE - G filed by the Petitioner in an expeditious manner and till the disposal of the said appeal, not to make any demand of Income Tax from the petitioner; and iii) grant such other relief as may be deemed fit to grant under the circumstances of the case in the interest of equity and justice."

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HC-KAR NC: 2025:KHC:26532 WP No. 14364 of 2025 C/W WP No. 14351 of 2025 WP No. 14362 of 2025

3.

The petitioner in W.P.No.14362/2025 is before this Court seeking for the following reliefs: i) Quash the Rectification Order dt:07.03.2025 bearing DIN & Order No: ITBA/REC/S/154_1/2024-25/1074196428(1) passed by the 3rd Respondent marked as ANNEXURE "E" by issuing a writ in the nature of Certiorari; OR IN THE ALTERNATIVE ii) issue a writ in the nature of mandamus by directing the 1st Respondent to dispose off the appeal ANNEXURE - G filed by the Petitioner in an expeditious manner and till the disposal of the said appeal, not to make any demand of Income Tax from the petitioner; and iii) grant such other relief as may be deemed fit to grant under the circumstances of the case in the interest of equity and justice."

4.

The grievance of the petitioner is that the application under Section 220(6) of the Income Tax Act, 1961 to keep the proceedings in abeyance pending the appeal filed by the petitioner has been rejected.

5.

An enquiry as to why the proceedings have to be kept in abeyance learned counsel for the petitioner submit that the order which has been passed against the petitioner was without jurisdiction and as such, no further proceedings would be taken in relation thereto and an appeal has been filed challenging the said order along

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HC-KAR NC: 2025:KHC:26532 WP No. 14364 of 2025 C/W WP No. 14351 of 2025 WP No. 14362 of 2025

with an application for stay, which has not been considered and as such the application under Section 220(6) of the Act was filed. Once an appeal has been filed, it would be for the Appellate Authority to consider the matter, since the entire proceedings and paper are before the Appellate Authority.

6.

Whenever any application for stay is filed along with the appeal papers, it would be required for the Appellate Authority to consider the application for stay, since in many cases, if such application is not considered, the very purpose of filing the appeal itself would be lost rendering the appeal infructuous. In that view of the matter, I pass the following: ORDER i) The writ petitions are disposed off; ii) The first Appellate Authority - respondent No.1 is directed to consider and pass necessary orders on the application for stay filed by the petitioner in the appeal filed by the petitioner, as expeditiously as possible preferably, within a period of 15 days; and iii) The petitioner shall appear before the Principal Commissioner of Income Tax on 4th August, 2025 at 2:30 PM, who shall consider the application for stay

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HC-KAR NC: 2025:KHC:26532 WP No. 14364 of 2025 C/W WP No. 14351 of 2025 WP No. 14362 of 2025

and dispose the same, within a period of 30 days thereafter.

SD/- (SURAJ GOVINDARAJ) JUDGE

KG List No.: 1 Sl No.: 16

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