Kerala State Co-operative Bank Ltd V. Union of India and The Commissioner of Income Tax (TDS)

WA/765/2024

AI Insights

The case involves the Kerala State Co-operative Bank Ltd, the appellant, who challenged the demand notices issued by the tax authorities following an assessment order under the Income Tax Act, 1961 for the assessment year 2020-21. The appellant had initially deposited 20% of the assessed tax and appealed to the First Appellate Authority, which was rejected, leading to an appeal to the Income Tax Appellate Tribunal. Concurrently, the appellant approached the writ court to stay the recovery proceedings initiated by the tax authorities despite the ongoing appeal at the Tribunal. The learned Single Judge allowed the appellant to file a stay petition but required a 30% tax remittance as a condition for staying the recovery, which the appellant contested in this writ appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 693656 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 10-06-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: B G HAREENDRANATH; AMITH H; GOWRI DEV; P DEVIKRISHNA
• Keywords: Assessment Order; Demand notices; Income Tax; Recovery proceedings; Stay Petition; Writ Appeal
• Section: 143(3); 144B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR & THE HONOURABLE MR. JUSTICE SYAM KUMAR V.M. MONDAY, THE 10TH DAY OF JUNE 2024/20TH JYAISHTA, 1946 W.A.NO.765 OF 2024 AGAINST THE JUDGMENT DATED 05.04.2024 IN W.P(C).NO.34123 OF 2022 OF HIGH COURT OF KERALA APPELLANT(S)/PETITIONER: KERALA STATE CO-OPERATIVE BANK LTD KERALA STATE CO-OPERATIVE BANK LTD, PB NO 6515, COBANK TOWERS, PALAYAM, THIRUVANANTHAPURAM, KERALA, PIN – 695033. BY ADV.SRI.B.G.HARINDRANATH (SR.)(K/378/1984) BY ADV.SRI.AMITH KRISHNAN H. BY ADV.SRI.GOWRI DEV BY ADV.SMT.P.DEVIKRISHNA RESPONDENT(S)/RESPONDENT: 1 UNION OF INDIA REPRESENTED BY THE SECRETARY, MINISTRY OF FINANCE, NORTH BLOCK, RAISANA HILL, NEW DELHI-110001. PIN - 110001 2 THE COMMISSIONER OF INCOME TAX (TDS), AYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM- 695003, PIN - 695003 BY SRI.CHRISTOPHER ABRAHAM, SC, INCOME TAX DEPARTMENT THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 10.06.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W .A.NO.765 OF 2024 :: 2 :: J U D G M E N T D r . A.K. Jayasankaran Nambiar, J. This Writ Appeal is preferred against the judgment dated 05.04.2024 of a learned Single Judge in W .P .(C).No.34123/2022. 2. The brief facts necessary for the disposal of this Writ Appeal are as follows: The appellant had preferred the writ petition impugning Exts.P16 and P18 demand notices issued in pursuance to Ext.P17 assessment order passed under Section 143(3) read with Section 144 B of the Income Tax Act, 1961 in respect of the assessment year 2020-21. The assessment order in question was impugned before the First Appellate Authority, who rejected the appeal. The appellant had, in the meanwhile, deposited 20% of the assessed tax before the First Appellate Authority. Consequent to the dismissal of the appeal, the appellant had to approach the Income Tax Appellate Tribunal, which he did. He approached the writ court because, although the appeal had been filed before the Appellate Tribunal, the respondent Tax authorities had issued the impugned demand notices for recovery of the amounts confirmed against the appellant by the assessment order in question. W .A.NO.765 OF 2024 :: 3 :: 3. Before the learned Single Judge, the appellant undertook to file a stay petition before the Appellate Tribunal within ten days, and the limited prayer thereafter was for a direction to the Appellate Tribunal to consider and pass orders on the stay application expeditiously and to keep in abeyance recovery proceedings that have been initiated by the respondent in the meanwhile. 4. The learned Single Judge, who considered the matter, while permitting the appellant to file the stay petition, and directing the Appellate Tribunal to consider the stay petition expeditiously within a period of three months, further directed the appellant to remit 30% of the tax assessed as a condition for staying the recovery of assessed tax in the meanwhile. It is against this latter direction that the appellant is before us through this writ appeal. 5. We have heard the learned Senior Counsel Sri. B.G Hareendranath, duly assisted by Adv. Amith Krishnan H., for the appellant as also Sri.Christopher Abraham, the learned Standing Counsel for the respondent Income Tax Department. 6. On a consideration of the rival submissions, we are of the view that, since the learned Single Judge has relegated the appellant W .A.NO.765 OF 2024 :: 4 :: to the alternate remedy before the statutory authority, it was incumbent upon him to protect the appellant from recovery proceedings pending disposal of the stay petition by the Appellate Authority. Accordingly, we modify the impugned judgment of the learned Single Judge to the limited extent of clarifying that pending disposal of the stay petition as directed by the learned Single Judge, the recovery proceedings against the appellant, for recovery of the amounts referred to in Exts.P16 and P18 demand notices shall be kept in abeyance unconditionally. Save for this limited modification, the rest of the directions in the impugned judgment are not interfered with. The Writ Appeal is disposed as above. Sd/- DR. A.K.JAYASANKARAN NAMBIAR JUDGE Sd/- SYAM KUMAR V .M. JUDGE prp/10/6/24 W .A.NO.765 OF 2024 :: 5 :: APPENDIX OF W.A.NO.765/2024 PETITIONER'S ANNEXURES: ANNEXURE A1 ITAT APPEAL MEMORANDUM DATED 15-04-2024 ANNEXURE A2 TRUE COPY OF RECTIFICATION PETITION DATED 30-01-2024 ANNEXURE A3 REPLY TO SHOW CAUSE NOTICE DATED 8-12-2023. RESPONDENTS ANNEXUES: NIL. //TRUE COPY// P.S. TO JUDGE "