PERINTHALMANNA SERVICE CO-OP.BANK LTD vs. THE INCOME TAX OFFICER, WARD 2, TIRUR

WP(C)/14537/2014HC KeralaKLHC01060159201410 June 2014Bench: HONOURABLE MR.JUSTICE K.VINOD CHANDRAN4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the Commissioner of Income Tax (Appeals) to consider the stay petition filed by the petitioner within one month from the date of the order. In the interim, further proceedings pursuant to the revenue recovery notice were ordered to be kept in abeyance until the Commissioner passed orders on the stay petition. The Commissioner's order on the stay petition would then determine the matter thereafter. The High Court did not decide the merits of the appeal or the validity of the assessment order itself, focusing solely on the procedural aspect of the pending stay application and the initiated recovery proceedings.

What were the facts?

The petitioner, Perinthalmanna Service Co-op. Bank Ltd., is challenging an assessment order for the assessment year 2009-10. The petitioner filed an appeal and a stay petition before the Commissioner of Income Tax (Appeals), Kozhikode. While these proceedings were pending, the revenue initiated recovery proceedings against the petitioner. The present writ petition was filed in this context, seeking intervention from the High Court.

What were the issues?

1. Whether the revenue recovery proceedings initiated against the petitioner are valid during the pendency of the appeal and stay petition before the appellate authority? (Question of law and fact) The assessee contended that the initiation of revenue recovery proceedings while an appeal and stay petition were pending before the Commissioner of Income Tax (Appeals) was premature and prejudicial. The assessee relied on the principle that recovery should be stayed pending the decision of the appellate authority. The revenue's contentions are not recorded in the judgment.

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 TUESDAY, THE 10TH DAY OF JUNE 2014/20TH JYAISHTA, 1936 WP(C).No. 14537 of 2014 (N) ---------------------------- PETITIONER(S): -------------- PERINTHALMANNA SERVICE CO-OP.BANK LTD, HOSPITAL ROAD, PERINTHALMANNA, MALAPPURAM DISTRICT, PIN-679 322, REPRESENTED BY ITS CHIEF EXECUTIVE. BY ADVS.SRI.K.ANAND (SR.) SMT.LATHA KRISHNAN RESPONDENT(S): --------------

THE INCOME TAX OFFICER,

WARD 2,

OFFICE OF THE ASST.COMMISSIONER OF INCOME TAX,

TRAFFIC BAZAR, TOWN HALL ROAD, TIRUR-676 101. 2. THE COMMISSIONER OF INCOME TAX,

(APPEALS) KOZHIKODE. BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10-06-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: RVS/

WP(C).No. 14537 of 2014 (N)

APPENDIX PETITIONER(S)' EXHIBITS : ------------------------- EXT.P1.THE TRUE COPY OF THE ASSESSMENT ORDER. EXT.P2.THE TRUE COPY OF THE MEMORANDUM FILED BY THE PETITIONER. EXT.P3.THE TRUE COPY OF THE INTERIM APPLICATION FOR STAY. EXT.P4.THE TRUE COPY OF PROCEEDINGS DATED 19/3/2014. RESPONDENT(S)' EXHIBITS ------------------------- NIL. /true copy/ P.A.TO JUDGE rvs/

K.VINOD CHANDRAN, J - - - - - - - - - - - - - - - - - - - - W.P.(C).No. 14537 of 2014 - - - - - - - - - - - - - - - - Dated 10th June, 2014 - - - - - - - - - - - - - - - - - - - - - - - - JUDGMENT Ext.P1 is the assessment order passed against the petitioner for the year 2009-10 against which petitioner filed Ext.P2 appeal and Ext.P3 stay petition. During the pendency of appeal and stay petition before the 2nd respondent, revenue recovery proceedings have been initiated against the petitioner by Ext.P4. It is in this context, the writ petition is filed.

In the above circumstances, it is directed that the 2nd respondent shall consider Ext.P3 stay petition within a period of one month from today and in the meanwhile, further proceedings pursuant to Ext.P4 shall be kept in abeyance until

WP(C).14537/14 2 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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