KALLUR SERVICE CO-OPERATIVE BANK LIMITED NO.693 V. THE INCOME TAX OFFICER

WP(C)/3149/2020

AI Insights

The case involves Kallur Service Co-operative Bank Limited, which filed a writ petition against the Income Tax Department challenging the demands and recovery orders for the assessment years 2012-13 and 2017-18. The petitioner sought to stay the operation of these orders and the coercive recovery actions until the appeals pending before the Commissioner of Income Tax (Appeals) were decided. The court referenced a series of precedents, including a Division Bench judgment and a Full Bench decision, which supported the petitioner's request for a stay on coercive recovery actions pending the appeal's outcome. The court's decision emphasized the need for a timely and fair hearing of the appeals by the appellate authority.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 754211 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 05-02-2020
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Co-operative Service Bank Ltd. v. Commissioner of Income Tax, Calicut [2019 (2) KHC 287], W.A.No. 1529/2019, W.P.(C).No.523/2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: C A JOJO; JACOB CHACKO
• Keywords: Appeal; Coercive Recovery; Income Tax; Stay of demand; Writ petition
• Section: 220(6)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE ALEXANDER THOMAS WEDNESDAY, THE 05TH DAY OF FEBRUARY 2020 / 16TH MAGHA, 1941 WP(C).No.3149 OF 2020(P) PETITIONER/S: KALLUR SERVICE CO-OPERATIVE BANK LIMITED NO.693 REPRESENTED BY ITS SECRETARY, KALLUR P.O., MAVINCHUVADU, TRISSUR DISTRICT, PIN-680 317. BY ADVS. SRI.C.A.JOJO SRI.JACOB CHACKO RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 2(2), AYAKAR BAHVAN, NEAR SAKTHAN STAND, THRISSUR-680 001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN, NEAR SKTHAN STAND, THRISSUR-680 001. 3 THE PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, NEAR SAKTHAN STAND, THRISSUR-680 001. OTHER PRESENT: SRI.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.3149 OF 2020(P) 2 ALEXANDER THOMAS, J. ----------------------------------------- W.P.(C.) No. 3149 of 2020 ----------------------------------------- Dated this the 5th day of February, 2020 JUDGMENT The prayers in the above Writ Petition (Civil) are as follows: (i) “to stay the operation of exhibit P5, P6, P10 and P12 orders for Ay 2012-13 and 2017-18 and further recovery till the final disposal of the Ext. P3 and P9 appeals before the 2nd respondent within a time limit. (ii) to issue a writ of mandamus directing to consider the Ext.P3 and P9 appeal on merit and also restrain the petitioner society till the final orders are passed in the pending appeals. (iii) to issue a writ of certiorari quashing Exhibit P5, P6, P10 and P12 demands till the final orders are passed in appeals. (iv) to stay all coercive proceedings of recovery till the appeals are disposed of in a time frame. (v) to grant such other reliefs which this Hon'ble Court may deem fit and proper in the circumstances of the case.” 2. Heard Sri.C.A.Jojo, learned counsel appearing for the petitioner and Sri.Jose Joseph, learned Standing Counsel for the Income Tax Department appearing for the respondents. 3. In similar circumstances, a Division Bench of this Court in the judgment dated 1.7.2019 in W.A.No. 1529/2019 has taken the view that the insistence for payment of a portion of the amount demanded, as a condition for grant of stay, need not be insisted in cases as in the instant one and that the Division Bench, for reasons stated therein, has ordered that it is for the appellate authority to take a decision on the statutory appeal at the earliest and that until the final decision is rendered by the appellate authority in the statutory appeal, coercive steps for recovery and WP(C).No.3149 OF 2020(P) 3 collection of the impugned tax shall be kept in abeyance in the light of the dictum laid down by the Full Bench of this Court in Mavilayi Service Co-operative Service Bank Ltd., v. Commissioner of Income Tax, Calicut [2019 (2) KHC 287]. The Division Bench in the abovesaid judgment dated 1.7.2019 in W.A.No. 1529/2019 has also dealt with the reasons for taking such a view for making such an interim arrangement pending disposal of the main appeal by the statutory appellate authority concerned. The said decision of the Division Bench of this Court in W.A.No. 1529/2019 has been followed by this Court in a series of other cases as in the judgment dated 10.1.2020 in W.P.(C).No.523/2020. Accordingly, following the line of directions and orders already passed by the Division Bench of this Court in the judgment dated 1.7.2019 in W.A.No. 1529/2019 as well as various other judgments rendered by this Court, following the said directions and orders of the Division Bench in the matter of the interim arrangement till the disposal of the main statutory appeal, etc., following orders and directions are issued: It is ordered that the 2nd respondent appellate authority shall ensure final disposal of Exts.P3 and P9 appeals after affording reasonable opportunity of being heard to the petitioner without much delay and within a reasonable time limit that may be fixed appropriately by the said appellate authority. However, in the interest of justice it is ordered that until final orders are passed disposing of Exts.P3 and P9 appeals, all coercive steps for the enforcement of the assessment order WP(C).No.3149 OF 2020(P) 4 impugned in the abovesaid appeals shall be kept in abeyance. With these observations and directions, the Writ Petition (Civil) stands finally disposed of. Sd/- ALEXANDER THOMAS, JUDGE SKS WP(C).No.3149 OF 2020(P) 5 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER AY 2012-13 DATED 23.09.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 A TRUE COPY OF THE DEMAND NOTICE 2012-13 DATED 23.09.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 A TRUE COPY OF THE APPEAL FOR AY 2012-13 DATED 05.10.2019 FILED BEFORE THE 2ND RESPONDENT. EXHIBIT P4 A TRUE COPY OF THE STATUTORY STAY PETITION DATED 09.10.2019 FILED BEFORE THE 1ST RESPONDENT. EXHIBIT P5 A TRUE COPY OF THE ORDER UNDER SECTION 220(6) REJECTING THE STAY PETITION DATED 14.11.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P6 A TRUE COPY OF THE ASSESSMENT ORDER DATED 23.12.2018 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P7 A TRUE COPY OF THE LETTER OF DEMAND FOR RS.40,90,010/- WITH INTEREST DATED 07.01.2020 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P8 A TRUE COPY OF THE DEMAND NOTICE FOR RS.76,60,164/ DATED 23.09.2019 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P9 A TRUE COPY OF THE APPEAL FOR AY 2007-18 DATED 06.11.2019 BEFORE THE 2ND RESPONDENT. EXHIBIT P10 A TRUE COPY OF THE ORDER OF THE 2ND RESPONDENT DATED 14.11.2019. EXHIBIT P11 A TRUE COPY OF THE REVIEW PETITION ON EXT.P10 DATED 19.11.2019 BEFORE THE 3RD RESPONDENT. EXHIBIT P12 A TRUE COPY OF THE ORDER DATED 23.01.2020 ISSUED BY THE 3RD RESPONDENT. EXHIBIT P13 A TRUE COPY OF THE JUDGMENT IN WA NO.1356/2019 DATED 01.07.2019. WP(C).No.3149 OF 2020(P) 6 "