AVITTATHOOR SERVICE CO-OPERATIVE BANK LTD. NO.706 V. THE INCOME TAX OFFICER WARD 2(1)

WP(C)/25079/2019

AI Insights

The case involves the Avittathoor Service Co-operative Bank Ltd., which challenged an order from the Commissioner of Income Tax (Appeals) requiring a 20% payment of the assessed tax demand as a condition for granting a stay on recovery actions. The petitioner argued that, based on a precedent set by the Mavilayi Service Co-operative Bank Ltd. case, they had a strong chance of success in their appeal, and thus, no such condition should be imposed. The court agreed with the petitioner, referencing the similar case, and decided to quash the conditional stay order, directing a re-evaluation of the appeal without such conditions.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 754651 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 23-09-2019
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, Calicut - [2019 (2) KHC 287 (FB)]
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: M SASINDRAN; I SREEHARI
• Keywords: Appeal; Assessment Order; Income Tax; Stay Application
• Section: 2.1

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR MONDAY, THE 23RD DAY OF SEPTEMBER 2019/1ST ASWINA, 1941 W.P(C).No.25079 OF 2019(H) PETITIONER: AVITTATHOOR SERVICE CO-OPERATIVE BANK LTD. NO.706 P.O. AVITTATHOOR, MUKUNTHAPURAM, THRISSUR DISTRICT, REPRESENTED BY ITS SECRETARY. BY ADVS.SRI.M.SASINDRAN SRI.I.SREEHARI RESPONDENTS: 1 THE INCOME TAX OFFICER WARD 2(1) AYAKAR BHAVAN, INCOME TAX OFFICE, SHAKTHANTHAMPURAN NAGAR, THRISSUR - 680 001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) 3RD FLOOR, AAYAKAR BHAVAN, THRISSUR - 680 001. BY SRI.JOSE JOSEPH, SC, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.09.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No.25079/2019 : 2 : J U D G M E N T Against Ext.P2 assessment order under the Income Tax Act for the assessment year 2016-17, the petitioner has preferred Ext.P4 appeal and Ext.P4(a) stay petition before the 2nd respondent. In the writ petition, the petitioner is aggrieved by Ext.P7 order passed by the 2nd respondent in the stay application, whereby the petitioner has been directed to pay 20% of the demand confirmed against him by Ext.P2 assessment order on or before 30.9.2019, as a condition for grant of stay of recovery of the balance amounts confirmed against him by the assessment order. In the writ petition, it is the contention of the petitioner that, by virtue of the judgment of this Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, Calicut - [2019 (2) KHC 287 (FB)], the petitioner has a good chance of success in the appeal, and hence, no condition should be imposed while granting stay during the pendency of the appeal before the 2nd respondent. 2. I have heard the learned counsel appearing for the petitioner as also the learned Standing counsel appearing for the Income Tax Department. W.P.(C).No.25079/2019 : 3 : 3. On a consideration of the facts and circumstances of the case as also the submissions made across the Bar and taking note of the judgment of this Court in the decision referred above, I deem it appropriate to quash Ext.P7 order, and direct the 2nd respondent to consider and pass reasoned orders on Ext.P4 appeal within a period of one month from the date of receipt of a copy of this judgment, after hearing the petitioner. It is made clear that till such time as orders are passed in Ext.P4 appeal by the 2nd respondent, and the orders communicated to the petitioner, recovery steps for recovery of amounts confirmed against the petitioner by Ext.P2 assessment order shall be kept in abeyance. The petitioner shall produce a copy of the writ petition together with a copy of this judgment, before the 2nd respondent, for further action. The writ petition is disposed as above. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE prp/23/9/19 W.P.(C).No.25079/2019 : 4 : APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1: A TRUE COPY OF THE CERTIFICATE OF CLASSIFICATION ISSUED BY THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), MUKUNDAPURAM. EXHIBIT P2: A TRUE COPY OF THE ASSESSMENT ORDER DATED 22.12.2018. EXHIBIT P3: A TRUE COPY OF THE DEMAND NOTICE DATED 22.12.2018. EXHIBIT P4 A TRUE COPY OF THE APPEAL MEMORANDUM FILED BEFORE THE 2ND RESPONDENT. EXHIBIT P4 (A) A TRUE COPY OF THE STAY PETITION FILED BEFORE THE 2ND RESPONDENT. EXHIBIT P5 A TRUE COPY OF THE JUDGMENT IN W.P(C) NO.10211 OF 2019 DATED 2.4.2019. EXHIBIT P6 A TRUE COPY OF THE JUDGMENT DATED 29.8.2019 IN W.P.(C).23352 OF 2019. EXHIBIT P7 A TRUE COPY OF THE ORDER DATED 6.8.2019 ISSUED BY THE 2ND RESPONDENT IN I.T.A.NO.419/18-19. EXHIBIT P8 RESPONDENTS EXHIBITS: A TRUE COPY OF THE DEMAND NOTICE DATED 16.8.2019. NIL. //TRUE COPY// P.S. TO JUDGE "