NADAPURAM SERVICE CO-OPERATIVE BANK LTD V. INCOME TAX OFFICER

WP(C)/31866/2019

AI Insights

The case involves Nadapuram Service Co-operative Bank Ltd, which challenged a penalty order under the Income Tax Act. The bank had appealed against this penalty and sought a stay on the recovery of the disputed amount. The appellate authority had conditioned the stay on the payment of 20% of the disputed amount. The bank argued that similar cases had been decided by the court without such conditions, citing financial implications for Primary Agricultural Credit Societies. The court agreed with the bank's position, referencing a similar judgment, and ordered the appellate authority to decide the appeal expeditiously without further conditions on the stay.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 754535 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 25-11-2019
• Assessment Year: misc
• Other Referred Cases: WPC 6907 OF 2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: M P KUMAR; P C GOPINATH; BINDU SREEDHAR; ASIF N
• Keywords: Appeal; Financial Implication; Penalty order; Primary Agricultural Credit Societies; Stay Petition
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR MONDAY, THE 25TH DAY OF NOVEMBER 2019 / 4TH AGRAHAYANA, 1941 WP(C).No.31866 OF 2019(G) PETITIONER: NADAPURAM SERVICE CO-OPERATIVE BANK LTD, F-721 REP BY ITS SECRETARY, KALLACHI P.O., VADAKARA, KOZHIKODE DISTRICT-673 506 BY ADVS. SRI.M.P.ASHOK KUMAR SRI.P.C.GOPINATH SMT.BINDU SREEDHAR SHRI.ASIF N RESPONDENTS: 1 INCOME TAX OFFICER AAYAKAR BHAVAN, KOZHIKODE-673 001 2 JOINT COMMISSIONER OF INCOME TAX, OFFICE OF THE INCOME TAX DEPARTMENT,RANGE-2,KOZHIKODE-673 001 3 COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, KOZHIKODE-673 001 BY ADV SRI.CHRISTOPHER ABRAHAM,SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.11.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No.31866 of 2019 2 JUDGMENT Against Ext.P1 penalty order under the Income Tax Act, the petitioner has preferred Ext.P2 appeal and Ext.P3 stay petition before the 3rd respondent. By Ext.P4 order, the 3rd respondent directed payment of 20% of the disputed amount as a condition for stay of recovery of the balance amount pending disposal of the appeal. The learned counsel for the petitioner points out that in almost identical circumstances, taking note of the huge financial implication for Primary Agricultural Credit Societies like the petitioner, this Court had quashed similar stay orders and directed the appellate authority to pass final orders in the appeal within three months from the date of receipt of a copy of the judgment, and stayed the recovery proceedings for the disputed amount, in the meanwhile. It is prayed that a similar order be passed in the instant case as well. 2. I have heard the learned counsel appearing for the petitioner as also the learned Standing counsel appearing for the Income Tax Department. 3. On a consideration of the facts and circumstances of the case as also the submissions made across the bar and taking note of Ext.P5 W.P.(C).No.31866 of 2019 3 judgment of this Court passed in almost identical circumstances, I dispose the Writ Petition by quashing Ext.P4 order and directing the 3rd respondent, before whom Ext.P2 appeal has been preferred by the petitioner against orders of penalty passed against it under the Income Tax Act, to consider and pass orders on the same, expeditiously, after hearing the petitioner, within three months from the date of receipt of a copy of this judgment. It is made clear that pending disposal of appeals by the 3rd respondent, and communication of the orders to the petitioner, there will be a stay of further proceedings for recovery of amounts confirmed against the petitioner by Ext.P1 penalty order. The petitioner shall produce a copy of the writ petition along with a copy of this judgment, before the 3rd respondent, for further action. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE mns W.P.(C).No.31866 of 2019 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 PHOTOCOPY OF THE ORDER DATED 14.05.2019 ISSUED BY THE 3RD RESPONDENT EXHIBIT P2 PHOTOCOPY OF THE APPEAL DATED 11.06.2019 EXHIBIT P3 PHOTOCOPY OF THE APPLICATION FOR STAY DATED 18.06.2019 EXHIBIT P4 PHOTOCOPY OF THE ORDER DATED 05.11.2019 PASSED BY 2ND RESPONDENT EXHIBIT P5 PHOTOCOPY OF THE COMMON JUDGMENT IN WPC 6907 OF 2019 DATED 11.10.2019 RESPONDENTS EXHIBITS:NIL //TRUE COPY// P.A TO JUDGE "