ROSARY CREDIT CO OPERATIVE SOCIETY LTD vs. COMMISSIONER OF INCOME TAX (APPEALS)

WP/27560/2025HC KarnatakaKAHC01059587202517 October 2025Bench: S.R.KRISHNA KUMAR3 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court of Karnataka, in its writ jurisdiction, directed the 1st respondent, the Commissioner of Income Tax (Appeals), to dispose of the appeal filed by the petitioner on April 3, 2025, within a period of four months from the date of receipt of a copy of the order. The Court further directed that the concerned respondent shall not take any precipitative or coercive steps against the petitioner until the disposal of the appeal. The Court did not decide on the merits of the appeal itself, but rather focused on ensuring its timely resolution and preventing immediate coercive action. The alternative relief regarding the consideration of stay applications was implicitly addressed by the direction for expeditious disposal and the stay on coercive steps.

What were the facts?

The petitioner, Rosary Credit Co Operative Society Ltd., filed a writ petition before the High Court of Karnataka seeking a direction to the Commissioner of Income Tax (Appeals) (1st respondent) to expeditiously dispose of its appeal, filed on April 3, 2025. The petitioner also sought a direction to restrain the respondents from making any demand of income tax until the appeal was decided. Alternatively, the petitioner requested a direction to consider its application for stay of demand, filed on April 3, 2025, and a related application filed on April 4, 2025, by the third respondent to keep the tax demand in abeyance. The respondents' counsel argued that the petition had no merit and should be dismissed.

What were the issues?

1. Whether a writ in the nature of mandamus should be issued directing the 1st respondent (Commissioner of Income Tax (Appeals)) to dispose of the petitioner's appeal expeditiously and to refrain from making any demand of income tax until disposal. 2. Whether a writ in the nature of mandamus should be issued directing the 1st respondent to consider the petitioner's application for stay of demand and the 3rd respondent to consider the application for keeping the tax demand in abeyance. Assessee's Contention: The petitioner sought an expeditious disposal of its appeal and a stay on tax demands until the appeal was decided. It also sought consideration of its stay application. The petitioner relied on the principle of equity and justice. Revenue's Contention: The learned counsel for the respondents submitted that there was no merit in the petition and that the same was liable to be dismissed.

AI-generated summary — verify with the full judgment below

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HC-KAR NC: 2025:KHC:41993 WP No. 27560 of 2025

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 27560 OF 2025 (T-IT) BETWEEN:

ROSARY CREDIT CO OPERATIVE SOCIETY LTD., (A SOCIETY REGISTERED UNDER KCS ACT 1959) KUNDESWARA ROAD, KUNDAPURA UDUPI DISTRICT – 576 201 REP BY ITS SECRETARY SRI MABLE D ALMLEIDA …PETITIONER (BY SRI. MAHESH R. UPPIN, ADVOCATE)

AND:

COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE ROOM NO 356, C.R.BUILDING I.P.ESTATE NEW DELHI – 110 002

ASSESSING OFFICER NATIONAL FACELESS ASSESSMENT CENTRE DELH – 110 002

INCOME TAX OFFICER WARD 1 AAYAKAR BHAVAN ADI UDUPI MALPE ROAD UDUPI – 576 103 …RESPONDENTS (BY SRI. THIRUMALESH M., ADVOCATE)

THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT THE 1ST RESPONDENT TO DISPOSE OFF THE APPEAL ANNX-G DTD 03.04.2025 FILED BY THE PETITIONER IN AN EXPEDITIOUS MANNER AND TILL THE DISPOSAL OF

Digitally signed by CHANDANA B M Location: High Court of Karnataka

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HC-KAR NC: 2025:KHC:41993 WP No. 27560 of 2025

THE SAID APPEAL NOT TO MAKE ANY DEMAND OF INCOME TAX FROM THE PETITIONER AND ETC.,

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks for the following reliefs: “i) Issue a writ in the nature of mandamus by directing the 1st Respondent to dispose off the appeal ANNEXURE-F dt: 03.04.2025 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 OR IN THE ALTERNATIVE ii) Issue writ in the nature of mandamus directing the first respondent to consider the application for stay dt: 03.04.2025 bearing No.-Nil-filed by the petitioner marked as ANNEXURE ‘G’ and the third respondent to consider the application dt: 04.04.2025 marked as ANNEXURE – ‘H’ bearing No.-Nil-for keeping the Demand of tax in abeyance; 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. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.

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HC-KAR NC: 2025:KHC:41993 WP No. 27560 of 2025

It is the grievance of the petitioner that the appeal filed by it before respondent No.1 on 03.04.2025 may be disposed of in an expeditious manner and also submits that respondent No.1 may be directed not to take any precipitative/coercive steps against the petitioner till disposal of the aforesaid appeal. 4. Per contra, learned counsel for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed. 5. In view of the aforesaid facts and circumstances and the submission made by learned counsel for the petitioner, I deem it just and appropriate to dispose of this petition by directing respondent No.1 to dispose of the appeal filed by the petitioner on 03.04.2025, within a period of four months from the date of receipt of a copy of this order. Further, the concerned respondent shall not take any precipitative/coercive steps against the petitioner till disposal of the aforesaid appeal. 6. With the aforesaid observations and directions, the petition stands disposed of. Sd/- (S.R.KRISHNA KUMAR) JUDGE BMC: List No.: 2 Sl No.: 24

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