MADHAVA VILASOM SERVICE CO-OPERATIVE BANK LTD.NO.1347 V. THE INCOME TAX OFFICER

WP(C)/19756/2021

AI Insights

The case involves Madhava Vilasom Service Co-operative Bank Ltd., a Primary Agricultural Credit Society, which challenged a penalty order issued under Section 271B of the Income Tax Act. The petitioner had filed an appeal and a stay petition against the penalty order, both of which were pending before the 2nd respondent, the Commissioner of Income Tax (Appeals). The petitioner feared that coercive actions might be taken before the stay petition was considered, potentially rendering the appeal moot. The court heard the arguments from both sides and decided to expedite the consideration of the stay petition and suspend any coercive actions until a decision was made on the stay.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 751773 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 23-09-2021
• Assessment Year: misc
• Other Referred Cases: WP(C) No. 5259 of 2020, WP(C) No. 18484 of 2019
• Laws Referred To: Kerala Co-operative Societies Act, 1969, Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: THOMAS ABRAHAM; CHRISTOPHER ABRAHAM
• Assessee Lawyers: T R HARIKUMAR; ARJUN RAGHAVAN
• Keywords: Appeal; Coercive Proceedings; Penalty order; Stay Petition
• Section: 271B; 156

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS THURSDAY, THE 23RD DAY OF SEPTEMBER 2021 / 1ST ASWINA, 1943 WP(C) NO. 19756 OF 2021 PETITIONER: MADHAVA VILASOM SERVICE CO-OPERATIVE BANK LTD.NO.1347 REPRESENTED BY ITS SECRETARY, ARASUMOODU, KULATHOOR P.O, THIRUVANANTHAPURAM DISTRICT BY ADVS.T.R.HARIKUMAR ARJUN RAGHAVAN RESPONDENTS: 1 THE INCOME TAX OFFICER WARD -2(1), OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, KAWDIAR P.O, THHIRUVANANTHAPURAM PIN 695 003 2 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, NORTH BLOCK, DELHI 110 001 3 THE COMMISSIONER OF INCOME TAX(APPEALS) NATIONAL FACELESS APPEAL CENTRE, NORTH BLOCK, DELHI 110 001 4 THE KERALA STATE CO-OPERATIVE BANK LTD. (FORMERLY KNOWN AS THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK) KULATHOOR BRANCH, KULATHOOR, THIRUVANANTHAPURAM PIN 695 583 REPRESENTED BY ITS BRANCH MANAGER. OTHER PRESENT: R4 – ADV.THOMAS ABRAHAM, SC. ADV.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.09.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 19756 OF 2021 2 BECHU KURIAN THOMAS, J =========================== W.P.(C) No.19756 of 2021 --------------------------------- Dated this the 23rd day of September, 2021 JUDGMENT Petitioner is a Primary Agricultural Credit Society, registered under the Kerala Co-operative Societies Act, 1969. Being aggrieved by Ext.P2 penalty order issued under Section 271 B of the Income Tax Act, petitioner preferred Ext.P3 appeal before the 2nd respondent along with Ext.P4 stay petition. It is submitted that the appeal as well as the stay petitions are pending consideration before the 2 nd respondent. 2. Learned counsel for the petitioner apprehends that before the stay petition is taken up for consideration, coercive proceedings will be carried out thereby rendering the appeal itself as infructuous. Petitioner, WP(C) NO. 19756 OF 2021 3 therefore, seeks for a direction for early consideration of his stay petition. 3. I have heard Adv.T.R.Harikumar, the learned counsel for the petitioner as well as Adv.Christopher Abraham, the learned Standing Counsel for the respondents. 4. Having regard to the submissions made by the learned counsel for the petitioner as well as the learned counsel for the respondents and on account of the circumstances arising in the case, I am of the view that the 2nd and 3rd respondent, as the case may be, can be directed to dispose of Ext.P4 stay petition in a time bound manner. 5. Accordingly, there will be a direction to respondents 2 and 3, as the case may be, to take up Ext.P4 stay petition filed along with Ext.P3 appeal and consider the same and pass appropriate orders within a period of two months from the date of receipt of a certified WP(C) NO. 19756 OF 2021 4 copy of this judgment. 6. Till such orders are passed, all coercive proceedings initiated pursuant to Ext.P2 order shall be kept in abeyance. The writ petition is disposed of as above. Sd/- BECHU KURIAN THOMAS, JUDGE AMV/23/09//2021 WP(C) NO. 19756 OF 2021 5 APPENDIX OF WP(C) 19756/2021 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE JUDGEMENT DATED 25-02-2020 IN WP(C) NO. 5259 OF 2020 Exhibit P2 A TRUE COPY OF THE PENALTY ORDER DATED 26-04-2019 AND NUMBERED AS ITBA/PNL/F/271B/19- 20/1015813400(1) ALONG WITH DEMAND NOTICE ISSUED UNDER SECTION 156,FOR THE ASSESSMENT YEAR 2016- 2017, BY THE 1ST RESPONDENT Exhibit P3 A TRUE COPY OF ONLINE APPEAL DATED 01-05-2019 PREFERRED BY THE PETITIONER BEFORE THE 2ND RESPONDENT Exhibit P4 A TRUE COPY OF STAY PETITION DATED 01-05-2019 PREFERRED BY THE PETITIONER IN EXT-P3 APPEAL Exhibit P5 A TRUE COPY OF THE APPLICATION DATED 21-08-2021 SUBMITTED BY THE PETITIONER. Exhibit P6 A TRUE COPY OF THE COMMUNICATION DATED 25-08-2021 AND NUMBERED AS ITBA/RCV/F/17/2021- 22/1035086318(1) ISSUED BY THE 1ST RESPONDENT. Exhibit P7 A TRUE COPY JUDGMENT DATED 08-07-2019 IN WP(C) NO. 18484 OF 2019 RESPONDENTS EXHIBITS : NIL TRUE COPY P.A.TO JUDGE "