Edyate Nedumpurath Chandrika V. The Assistant Commissioner of Income Tax, Central Circle-2, Kozhikode and Commissioner of Income Tax (Appeals) National Faceless Appeal Centre, New Delhi and The Service Co-operative Bank Ltd. No.F.583, Abdurahiman Nagar and Edarikode Service Co-operative Bank Limited

WP(C)/37729/2022

AI Insights

The case involves Edyate Nedumpurath Chandrika, the petitioner, who challenged the garnishee proceedings initiated against her for non-payment of assessed tax amounts following several assessment orders from the Assistant Commissioner of Income Tax, Central Circle-2, Kozhikode. The petitioner had filed appeals against these orders and had remitted 20% of the assessed tax, which under the guidelines prescribed in the Office Memorandum F.No.404/72/93-ITCC, dated 31.7.2017, resulted in an automatic stay of further demand. The respondents, including the Commissioner of Income Tax (Appeals) and various cooperative banks, were involved in the proceedings. The court's decision to dispose of the writ petition was based on the expiration of the attachment orders and the compliance with the tax deposit requirement by the petitioner.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 796637 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 19-01-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: NAVANEETH NATH; P A SHAH; RENOY VINCENT
• Assessee Lawyers: ANIL NAIR; TELMA RAJU; VINEETA KRISHNAN; P K BIJU; ANJANA
• Keywords: Assessment orders; Automatic Stay; Garnishee proceedings; Property Attachment; Tax demand
• Section: 226(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH FRIDAY, THE 19TH DAY OF JANUARY 2024 / 29TH POUSHA, 1945 WP(C) NO. 37729 OF 2022 PETITIONER/S: EDYATE NEDUMPURATH CHANDRIKA, AGED 61 YEARS JYOTHIS, TIRURANGADI ABDURAHIMAN NAGAR, MALAPPURAM, PIN - 676305 BY ADVS. ANIL D. NAIR TELMA RAJU EDATHARA VINEETA KRISHNAN P.K.BIJU ANJANA A. RESPONDENT/S: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, KOZHIKODE, PIN - 673001 2 COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, NEW DELHI, PIN - 110001 3 THE SERVICE CO-OPERATIVE BANK LTD. NO.F.583, ABDURAHIMAN NAGAR, 7/566, SERVICE CO-OPERATIVE BANK BUILDING, KONDOTTY - TIRURANGADI ROAD, MALAPPURAM DISTRICT, KERALA, PIN - 676305 4 EDARIKODE SERVICE CO- OPERATIVE BANK LIMITED, SERVICE CO- OPERATIVE BANK BUILDING, EDARIKODE, MALAPPURAM, KERALA, INDIA, PIN - 676501 BY ADVS. NAVANEETH.N.NATH P.A.MOHAMMED SHAH RENOY VINCENT WP(C) NO. 37729 OF 2022 2 HELEN P.A. ARUN ROY SHAHIR SHOWKATH ALI ATHUL ROY SUSIE B VARGHESE(K/1300/2019) OTHER PRESENT: NAVANEETH .N. NATH-SC THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 19.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 37729 OF 2022 3 J U D G M E N T The present writ petition has been filed impugning the garnishee proceedings initiated against the petitioner vide Exts.P29 to P32 orders under Section 226(3) of the Income Tax Act, 1961. 2. Since the petitioner did not pay the assessed tax amount immediately after completion of the assessment orders, garnishee proceedings have been undertaken against her. The petitioner has filed appeals against the assessment orders and has also remitted 20% of the tax assessed. The appeals are still pending for consideration and since the petitioner has complied with the guidelines prescribed in Office Memorandum F.No.404/72/93- ITCC, dated 31.7.2017 by making deposit of 20% of the disputed demand, there is automatic stay of further demand in pursuance to the assessment orders. 3. In view thereof, there is no reason to keep the attachment on the property because once WP(C) NO. 37729 OF 2022 4 the petitioner has deposited 20% of the demand, there will be automatic stay of recovery. 4. Sri.Navaneeth N.Nath, learned Standing Counsel appearing for the respondents, submits that the attachment orders are, even otherwise, not surviving, in view of the fact that the attachment orders are valid only for sixty (60) days from the date of the assessment orders and the period of sixty (60) days was over much before. 5. In view thereof, nothing survives in the present writ petition. It is made clear that there is no order of attachment surviving in respect of the properties of the petitioner, including the bank deposits, if any, in pursuance to Exts.P29 to P32 orders. With the aforesaid observations, the present writ petition is disposed of. Pending interlocutory application, if any, in the present writ petition stands dismissed. Sd/- DINESH KUMAR SINGH JUDGE jg WP(C) NO. 37729 OF 2022 5 APPENDIX OF WP(C) 37729/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2015-16 Exhibit P2 TRUE COPY OF THE ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2016-17 Exhibit P3 TRUE COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2017- 18 Exhibit P4 TRUE COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2018- 19 Exhibit P5 TRUE COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2019- 20 Exhibit P6 TRUE COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2020- 21 Exhibit P7 TRUE COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2021- 22 Exhibit P8 TRUE COPY OF APPEAL FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEAR 2015-16. Exhibit P9 TRUE COPY OF APPEAL FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEAR 2016-17 Exhibit P10 TRUE COPY OF APPEAL FILED BEFORE THE 2ND WP(C) NO. 37729 OF 2022 6 RESPONDENT FOR THE ASSESSMENT YEAR 2017-18 Exhibit P11 TRUE COPY OF APPEAL FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEAR 2018-19 Exhibit P12 TRUE COPY OF APPEAL FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2019-20. Exhibit P13 TRUE COPY OF APPEAL FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2020-21 Exhibit P14 TRUE COPY OF APPEAL FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2021-22 Exhibit P15 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2015- 16 Exhibit P16 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2016- 17 Exhibit P17 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2017- 18 Exhibit P18 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2018- 19 Exhibit P19 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2019- 20 Exhibit P20 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2020- 21. Exhibit P21 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2021- WP(C) NO. 37729 OF 2022 7 22 Exhibit P22 TRUE COPY OF PETITION FILED UNDER SEC.220(6) BEFORE THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2015-16 Exhibit P23 TRUE COPY OF PETITION FILED UNDER SEC.220(6) BEFORE THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2016-17 Exhibit P24 TRUE COPY OF PETITION FILED UNDER SEC.220(6) BEFORE THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2017-18 Exhibit P25 TRUE COPY OF PETITION FILED UNDER SEC.220(6) BEFORE THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2018-19. Exhibit P26 TRUE COPY OF PETITION FILED UNDER SEC.220(6) BEFORE THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2019-20 Exhibit P27 TRUE COPY OF PETITION FILED UNDER SEC.220(6) BEFORE THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2020-21 Exhibit P28 TRUE COPY OF PETITION FILED UNDER SEC.220(6) BEFORE THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2021-22. Exhibit P29 TRUE COPY OF GARNISHEE PROCEEDINGS AGAINST THE PETITIONER ISSUED BY THE 1ST RESPONDENT Exhibit P30 TRUE COPY OF INTIMATION GIVEN TO THE 3RD RESPONDENT FOR THE GARNISHEE PROCEEDINGS AGAINST THE PETITIONER ISSUED BY THE 1ST RESPONDENT Exhibit P31 TRUE COPY OF INTIMATION GIVEN TO THE 4TH RESPONDENT FOR THE GARNISHEE PROCEEDINGS WP(C) NO. 37729 OF 2022 8 AGAINST THE PETITIONER ISSUED BY THE 1ST RESPONDENT. Exhibit P32 TRUE COPY OF INTIMATION GIVEN TO THE 4TH RESPONDENT FOR THE GARNISHEE PROCEEDINGS AGAINST THE PETITIONER ISSUED BY THE 1ST RESPONDENT. Exhibit P33 TRUE COPY OF THE ORDER DATED 22.11.2021 ISSUED BY THE 1ST RESPONDENT TO THE 3RD RESPONDENT Exhibit P34 TRUE COPY OF ORDER DATED 22.11.2021 ISSUED BY THE 1ST RESPONDENT TO THE 4TH RESPONDENT Exhibit P35 TRUE COPY OF LETTER OF EXTENSION OF SEC.281B ATTACHMENT ISSUED BY THE 1ST RESPONDENT TO THE 3RD RESPONDENT DATED 18.5.2022 Exhibit P36 TRUE COPY OF LETTER OF EXTENSION OF SEC.281B ATTACHMENT ISSUED BY THE 1ST RESPONDENT TO THE 4TH RESPONDENT DATED 18.5.2022 Exhibit P37 TRUE COPY OF LETTER DATED 30.11.2022 ISSUED BY THE 1ST RESPONDENT TO THE 3RD RESPONDENT "