M/S. THE VALANCHERY SERVICE CO-OPERATIVE BANK LTD vs. THE INCOME TAX OFFICER,WARD-1

WP(C)/13666/2014HC KeralaKLHC01059288201430 May 2014Bench: HONOURABLE MR.JUSTICE K.VINOD CHANDRAN4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court held that the Assessing Officer's order (Ext. P4) directing the stay of recovery was to be set aside. The Court reasoned that it is the prerogative of the Appellate Authority to consider and pass orders on a stay application filed before it, based on a prima facie consideration of the case. The Court directed the Appellate Authority (2nd respondent) to dispose of the stay application within one month from the date of the order. Coercive proceedings were stayed until such orders were passed by the Appellate Authority, which orders would then determine the matter. No specific issue was left undecided, as the court focused on the procedural aspect of the stay application.

What were the facts?

The petitioner, M/s. The Valanchery Service Co-operative Bank Ltd., was assessed under the Income Tax Act, 1961, for the assessment year 2010-11. The petitioner filed an appeal (ITA No. 202/R/CIT/CLT/2013-14) along with a stay application before the Commissioner of Income Tax (Appeals), the 2nd respondent. While the appeal and stay application were pending, coercive proceedings for recovery were initiated. The petitioner contends that the Appellate Authority improperly directed the Assessing Officer to consider the stay of recovery, instead of deciding the stay application itself. The Assessing Officer's subsequent order (Ext. P4) was set aside by the High Court.

What were the issues?

1. Whether the Appellate Authority (2nd respondent) abdicated its powers by directing the Assessing Officer to consider the stay of recovery, instead of deciding the stay application itself? (Question of law and fact, concerning the powers and duties of appellate authorities under the Income Tax Act). Contentions: Assessee: The Appellate Authority should have considered and decided the stay application on its merits. Directing the Assessing Officer to consider the stay was an improper delegation of power. The Assessing Officer's subsequent order was therefore invalid. Revenue: No specific contentions recorded for the revenue in this writ petition concerning the specific issue of the Appellate Authority's direction.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN FRIDAY, THE 30TH DAY OF MAY 2014/9TH JYAISHTA, 1936 WP(C).No. 13666 of 2014 (G) ---------------------------------------- PETITIONER: ------------------- M/S. THE VALANCHERY SERVICE CO-OPERATIVE BANK LTD., VALANCHERY P.O, MALAPPURAM DISTRICT, PIN - 676 552, REPRESENTED BY ITS SECRETARY V.K.SASIKUMAR. BY ADVS.SRI.N.J.MATHEWS, SMT.O.M.SHALINA. RESPONDENTS: ----------------------- 1. THE INCOME TAX OFFICER, WARD-1, TARIFF BAZAR, TOWN HALL ROAD, TIRUR- 676 101. 2. THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, MANANCHIRA, KOZHIKODE - 673 001. BY SRI.JOSE JOSEPH, S.C. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30-05-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Prv.

W.P.(C).NO.13666/2014 – G: APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1: TRUE COPY OF THE APPEAL I.T.A NO.202/R/CIT/CLT/2013-14 ALONG WITH A COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P2: TRUE COPY OF THE DIRECTION DATED 29/4/2014 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P3: TRUE COPY OF THE APPLICATION SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT, DATED 14/5/2014. EXHIBIT P4: TRUE COPY OF THE ORDER DATED 22/5/2014 ISSUED BY THE 1ST RESPONDENT. RESPONDENTS' EXHIBITS: NIL. //TRUE COPY// P.A. TO JUDGE. Prv.

K.VINOD CHANDRAN, J - - - - - - - - - - - - - - - - - - - - W.P.(C).No. 13666 of 2014 - - - - - - - - - - - - - - - - Dated 30th May, 2014 - - - - - - - - - - - - - - - - - - - - - - - - JUDGMENT The petitioner was assessed under the Income Tax Act, 1961, for the assessment year 2010-11. Against the said assessment order, petitioner filed Ext.P1 appeal along with the application for stay which are pending consideration of the 2nd respondent. In the meanwhile, coercive proceedings have been initiated. It is in this context, the writ petition has been filed. 2. The contention of the petitioner is that the Appellate Authority without considering the stay application has abdicated its powers by directing the Assessing Officer to consider the stay of recovery. Ext.P4 order passed by the Assessing Officer is set aside, since it is for the Appellate Authority to consider the case and

WP(C).13666/14 2 pass orders on the stay application; on a prima facie consideration. 3. In the above circumstances, it is directed that the Appellate Authority, the 2nd respondent herein, shall dispose of the stay application within a period of one month from today and the coercive proceedings be stayed until such orders are passed, which orders shall determine the matter thereafter. Writ petition disposed of. Sd/- K.VINOD CHANDRAN, Judge Mrcs //True Copy//

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