CHAVAKKAD SERVICE CO-OPERATIVE BANK LTD V. THE INCOME TAX OFFICER

WP(C)/33052/2022

AI Insights

The case involves Chavakkad Service Co-operative Bank Ltd, which filed a writ petition against the Income Tax Department's penalty orders for the assessment years 2012-13 and 2017-18. The petitioner contested the requirement to pay 80% of the penalty amount for a stay on the demands, as communicated by the Principal Commissioner of Income Tax. The bank had already filed appeals against these penalty orders. The High Court's decision focused on ensuring a timely resolution of these appeals and temporarily halting the recovery actions based on the penalty orders until the appeals are decided.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 683084 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 18-10-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: C A JOJO
• Keywords: Appeal; Income Tax; Penalty; Stay of Demands
• Section: 250; 156

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. TUESDAY, THE 18TH DAY OF OCTOBER 2022 / 26TH ASWINA, 1944 WP(C) NO. 33052 OF 2022 PETITIONER/S: CHAVAKKAD SERVICE CO-OPERATIVE BANK LTD NO.F.9991, BEACH ROAD, CHAVAKKAD P.O, THRISSUR DISTRICT, PIN-680506 REPRESENTED BY ITS SECRETARY, PIN - 680506 BY ADV C.A.JOJO RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 1 & TPS, GURUVAYOOR, CITY PLAZA, WEST NADA, THRISSUR-680101, PIN - 680101 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, KOZHIKODE, PIN-673001 3 THE COMMISSIONER OF INCOME TAX ( APPEALS) NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI-110001, PIN - 110001 4 THE ADDITIONAL COMMISSIONER OF INCOME TAX NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI-110001, PIN - 110001 ADV. JOSE JOSEPH (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 33052 OF 2022 2 JUDGMENT Petitioner has approached this Court, being aggrieved by the fact that the Principal Commissioner of Income Tax has, through Exts.P5 and P13, communicated to the petitioner that stay of demands under Exts.P1 and P8 orders imposing penalty in respect of the assessment years 2012-13 and 2017-18 can be granted only if the petitioner pays an amount equivalent to 80% of the amount levied as penalty. It is submitted that the petitioner has filed Exts.P3 and P10 appeals against Exts.P1 and P8 orders imposing penalty. 2. Heard the learned Standing Counsel appearing for the respondent Department also. 3. Having regard to the facts and circumstances of the case, this writ petition will stand disposed of, directing the 3rd respondent to consider and pass orders on Exts.P3 and P10 appeals filed against Exts.P1 and P8 orders imposing penalty for the assessment years 2012-13 and 2017-18, after affording an opportunity of hearing to the petitioner, within a period of six months from the date of receipt of a certified copy of this judgment. Till such time as orders are passed in the appeals, WP(C) NO. 33052 OF 2022 3 any steps for recovery of amounts due under Exts.P1 and P8 shall remain stayed. The writ petition is disposed of as above. sd/- GOPINATH P. JUDGE ajt WP(C) NO. 33052 OF 2022 4 APPENDIX OF WP(C) 33052/2022 PETITIONER EXHIBITS Exhibit P1 EXHIBIT-P1: A TRUE COPY OF THE PENALTY ORDER FOR AY 2012-13 ISSUED BY THE 4TH RESPONDENT DATED 24.01.2022 Exhibit P2 EXHIBIT P2: A TRUE COPY OF THE DEMAND NOTICE U/S 156 DATED 24.01.2022 Exhibit P3 EXHIBIT P3: A TRUE COPY OF THE APPEAL DATED 24.02.2022 BEFORE THE 3RD RESPONDENT Exhibit P4 EXHIBIT P4: A TRUE COPY OF THE STAY PETITION DATED 28.04.2022 FILED BEFORE THE 2ND RESPONDENT Exhibit P5 EXHIBIT P5: A TRUE COPY OF THE ORDER ON STAY PETITION ISSUED BY THE 2ND RESPONDENT DATED 07.07.2022 Exhibit P6 EXHIBIT-P6: A TRUE COPY OF THE ORDER U/S 250 PASSED BY THE 2ND RESPONDENT DATED 27.07.2022 Exhibit P7 EXHIBIT P7: A TRUE COPY OF THE ORDER IN EFFECT TO THE ORDER OF NFAC DELHI ISSUED U/S 250 BY THE 1ST RESPONDENT DATED 11.08.2022 Exhibit P8 EXHIBIT P8: A TRUE COPY OF THE PENALTY ORDER FOR AY 2017-18 ISSUED BY THE 4TH RESPONDENT DATED 24.01.2022 Exhibit P9 EXHIBIT P9: A TRUE COPY OF THE DEMAND NOTICE U/S 156 DATED 24.01.2022 Exhibit P10 EXHIBIT P10: A TRUE COPY OF THE APPEAL DATED 24.02.2022 BEFORE THE 3RD RESPONDENT Exhibit11 EXHIBIT-P11: A TRUE COPY OF THE STAY PETITION DATED 18.06.2022 FILED BEFORE THE 2ND RESPONDENT Exhibit P12 EXHIBIT P12: A TRUE COPY OF THE ORDER ON STAY PETITION ISSUED BY THE 2ND RESPONDENT DATED 07.07.2022 Exhibit P13 EXHIBIT P13: A TRUE COPY OF THE ORDER U/S 250 PASSED BY THE 2ND RESPONDENT DATED 27.07.2022 Exhibit P14 EXHIBIT P14: A TRUE COPY OF THE ORDER IN EFFECT TO THE ORDER OF NFAC DELHI ISSUED U/S 250 BY THE 1ST RESPONDENT DATED 12.08.2022 "