CHENNITHALA THRIPERUMTHURA SERVICE CO-OPERATIVE BANK LTD. V. UNION OF INDIA

WP(C)/35593/2023

AI Insights

The case involves Chennithala Thriperumthura Service Co-operative Bank Ltd., which filed a writ petition under Article 226 of the Constitution of India against various respondents including the Union of India and income tax authorities. The petitioner sought relief from the High Court of Kerala to prevent the enforcement of a demand notice (Ext.P9) for the assessment year 2020-21, while an appeal and stay petition (Ext.P8) were pending before the 4th respondent. The primary legal contention was the insistence on a 20% deposit of the disputed amount as a precondition for granting a stay on the recovery proceedings, which the petitioner challenged.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 688050 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 31-10-2023
• Assessment Year: misc
• Other Referred Cases: WP(C) No. 40690 of 2022, W.A. No.1639/2019 & Connected Matters
• Laws Referred To: Article 226 of the Constitution of India, Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Assessee Lawyers: GEORGE VARGHESE; NIMESH THOMAS; MANU SRINATH
• Keywords: Assessment Order; Income Tax; Recovery proceedings; Stay Application; Writ petition
• Section: 156

Judgement Text

" IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH TUESDAY, THE 31ST DAY OF OCTOBER 2023 / 9TH KARTHIKA, 1945 WP(C) NO. 35593 OF 2023 PETITIONER/S: CHENNITHALA THRIPERUMTHURA SERVICE CO-OPERATIVE BANK LTD. REPRESENTED BY ITS SECRETARY, CHENNITHALA THRIPERUMTHURA SCB LTD. 3553, CHENNITHALA P.O., MAVELIKKARA, ALAPPUZHA, KERALA, PIN - 690105 BY ADVS. GEORGE VARGHESE(PERUMPALLIKUTTIYIL) NIMESH THOMAS MANU SRINATH RESPONDENT/S: 1 UNION OF INDIA REPRESENTED BY ITS SECRETARY IN THE MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, CENTRAL SECRETARIAT, NEW DELHI, PIN - 110001 2 THE CENTRAL BOARD OF DIRECT TAXES REPRESENTED BY ITS CHAIRMAN, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, CENTRAL SECRETARIAT, NEW DELHI, PIN - 110001 3 PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX KERALA REGION MINISTRY OF FINANCE, GOVERNMENT OF INDIA, CENTRAL REVENUE BUILDINGS, I. S. PRESS ROAD, KOCHI, PIN - 682018 4 COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, NORTH BLOCK, DELHI, PIN - 110001 5 ASSESSING OFFICER ASSESSMENT UNIT, INCOME TAX DEPARTMENT, ALAPPUZHA, GENERAL HOSPITAL JUNCTION, KODIVEEDU, ALAPPUZHA, KERALA, PIN - 688011 WPC No.35593/2023 2 6 INCOME TAX OFFICER INCOME TAX OFFICE, OFFICE OF ADDL. CIT, THIRUVALLA RANGE, VAISHNAVAM ARCADE, T K ROAD, THIRUVALLA, KERALA, PIN - 689101 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 31.10.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.35593/2023 3 J U D G M E N T The present writ petition under Article 226 of the Constitution of India has been filed with the following prayers: “i. declare that the 4th Respondent is duty bound to decide the Ext.P8 Appeal and Stay Petition without insisting upon the deposit of 20% of the disputed amount as precondition to grant of stay; ii. issue a writ in the nature of certiorari or any appropriate writ order or direction, calling for the records leading to Ext.P9 to the extent it seeks to recover the arrears for the assessment year 2020-21 and quash the same; iii. issue a writ in the nature of mandamus or any appropriate writ order or direction, directing the 4th Respondent to take up the Ext.P8 Appeal and Stay petition and to decide the same on its merits, without insisting upon the deposit of 20% of the disputed amount as precondition to grant of stay; iv. issue a writ in the nature of mandamus or any appropriate writ order or direction, directing the Respondents not to proceed with the recovery measures over Ext.P7 Order until the Ext.P8 Appeal is decided by the WPC No.35593/2023 4 Appellate Authority; v. the petitioner also prays that this Hon’ble Court may be pleased to dispense with the translation of the documents produced in the vernacular language. vi. issue such other orders and directions as deemed fit to secure the ends of justice.” 2. The petitioner has filed Ext.P8 appeal before the 4th respondent, along with the application for stay. During the pendency of the appeal and stay application, a demand notice (Ext.P9) has been issued. 3. Learned Counsel for the petitioner submits that, on the one hand, the petitioner’s application for stay has not been considered, and on the other hand, the petitioner is facing recovery proceedings in Ext.P9 dated 14.09.2023. Admittedly, the petitioner has not remitted the 20% of the tax assessed. 4. Considering the fact that the petitioner's application for stay is pending consideration before the 4th respondent, the petitioner is directed to deposit 10% of the WPC No.35593/2023 5 assessed tax within a month. 4.1 Subject to making payment of 10% of the assessed tax, further proceedings in pursuance of Ext.P9 shall remain stayed till a decision on the application of the petitioner for stay is taken. 4.2 The 4th respondent is directed to take a decision on the stay application of the petitioner expeditiously, preferably within a period of two months in accordance with the law. 4.3 Further deposit in pursuance of Ext.P9 shall be subject to the outcome of the order on the application for stay. With the aforesaid liberty and direction, the present writ petition stands disposed of. Sd/- DINESH KUMAR SINGH JUDGE jjj WPC No.35593/2023 6 APPENDIX OF WP(C) 35593/2023 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF CERTIFICATE OF REGISTRATION NO. 3553 DATED 10.04.1956 ISSUED BY THE REGISTRAR OF CO-OPERATIVE SOCIETIES WITH ENGLISH TRANSLATION Exhibit P2 TRUE COPY OF THE ASSESSMENT ORDER DATED 21.09.2022 ISSUED BY THE LEARNED ASSESSING OFFICER - 5TH RESPONDENT Exhibit P3 TRUE COPY OF THE NOTICE OF DEMAND UNDER SECTION 156 OF THE INCOME TAX ACT, 1961 ISSUED BY THE LEARNED ASSESSING OFFICER - 5TH RESPONDENT TO THE PETITIONER DATED 01.08.2023 Exhibit P4 TRUE COPY OF THE APPEAL DATED 21.10.2022 PREFERRED BY THE PETITIONER BEFORE 4TH RESPONDENT ALONG WITH THE COPY OF THE STAY PETITION Exhibit P5 TRUE COPY OF THE JUDGMENT DATED 15.12.2022 IN WP(C) NO. 40690 OF 2022 PASSED BY THE HON'BLE HIGH COURT Exhibit P5A TRUE COPY OF THE ORDER DATED 10.03.2023 ISSUED BY THE 4TH RESPONDENT Exhibit P6 TRUE COPY OF THE LETTER DATED 17.07.2023 ISSUED BY THE PETITIONER TO THE 5TH RESPONDENT WPC No.35593/2023 7 Exhibit P7 TRUE COPY OF THE ORDER DATED 01.08.2023 ISSUED BY THE 5TH RESPONDENT Exhibit P7A TRUE COPY OF THE COMPUTATION SHEET Exhibit P7B TRUE COPY OF THE DEMAND NOTICE DATED 01.08.2023 ISSUED BY THE 5TH RESPONDENT Exhibit P8 TRUE COPY OF THE APPEAL DATED 07.09.2023 PREFERRED BY THE PETITIONER BEFORE 4TH RESPONDENT ALONG WITH THE COPY OF THE STAY PETITION Exhibit P9 TRUE COPY OF THE NOTICE DATED 14.09.2023 ISSUED BY THE 6TH RESPONDENT ITO TO THE PETITIONER Exhibit P10 TRUE COPY OF THE JUDGMENT DATED 19.07.2019 IN W.A. NO.1639/2019 & CONNECTED MATTERS PASSED BY THE DIVISION BENCH OF THE HON'BLE HIGH COURT "