THE NATTAKAM SERVICE CO-OPERATIVE BANK LIMITED, NO.3839 V. THE INCOME TAX OFFICER (TDS)

WP(C)/15042/2020

AI Insights

The case involves the Nattakam Service Co-operative Bank Limited, which challenged orders under Section 201(1)/201(1A) of the Income Tax Act issued by the Income Tax Officer (TDS) and the Commissioner of Income Tax (Appeals). The petitioner filed appeals and stay petitions against these orders, which were pending before the appellate authority. The petitioner sought to keep the recovery proceedings in abeyance during the appeal process. The High Court of Kerala, after hearing the arguments, decided to keep the recovery proceedings on hold until the appellate authority resolves the stay petitions and quashed the interim orders that required the petitioner to make a 20% payment.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 765723 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 30-07-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: C A JOJO; S JIJI
• Keywords: Income Tax; Recovery proceedings; Stay Petition
• Section: 201(1); 201(1A); 220(6)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR THURSDAY, THE 30TH DAY OF JULY 2020 / 8TH SRAVANA, 1942 WP(C).No.15042 OF 2020 PETITIONER: THE NATTAKAM SERVICE CO-OPERATIVE BANK LIMITED, NO.3839 REPRESENTED BY ITS SECRETARY T.R SATHYADEVAN, AGED 58 YEARS, S/O. RAVEENDRAN, NATTAKOM, PAKKIL P.O, KOTTAYAM DISTRICT, PIN 686 012 BY ADVS. SRI.C.A.JOJO SRI.S.JIJI RESPONDENTS: 1 THE INCOME TAX OFFICER (TDS) PUBLIC LIBRARY BUILDING, KOTTAYAM, KOTTAYAM PIN 686 001 2 THE COMMISSIONER OF INCOME TAX (APPEALS), PUBLIC LIBRARY BUILDING, KOTTAYAM RANGE, KOTTAYAM, PIN 686 001 BY ADV.SRI. CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30.07.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.15042 OF 2020 2 JUDGMENT Against Exts.P1 and P3 orders under Section 201(1)/201(1A) of the Income Tax Act, the petitioner has preferred Exts.P5 and P6 appeals together with Exts.P10 and P11 stay petitions before the 2nd respondent. It is the case of the petitioner that during the pendency of the appeal, and with a view to keeping in abeyance recovery steps, he had approached the 1st respondent for a stay and the 1st respondent by Exts.P8 and P9 orders had directed a payment of 20% of the amount pending disposal of the appeal. 2. I have heard the learned counsel appearing for the petitioner and also the learned Standing counsel appearing for the respondents. On a consideration of the facts and circumstances of the case as also the submissions made across the Bar, I find that the petitioner has preferred Exts.P10 and P11 stay petitions before the 2nd respondent appellate authority and the said authority is in seisin of the same. Under the said circumstances, I am of the view that recovery proceedings pursuant to Exts.P1 and P3 orders can be kept in abeyance till such time as the first appellate authority considers the stay petition. Accordingly, I dispose the Writ Petition by directing the 2nd respondent to consider and WP(C).No.15042 OF 2020 3 pass orders on Exts.P10 and P11 stay petitions within four months from the date of receipt of a copy of this judgment, after hearing the petitioner. Recovery steps for recovery of amounts confirmed against the petitioner by Exts.P1 and P3 orders shall be kept in abeyance till such time as orders are passed by the 2nd respondent as directed above and communicated to the petitioner. Further, in view of the above directions to the appellate authority, Exts.P8 and P9 orders of the 1st respondent are quashed. The petitioner shall produce a copy of the writ petition together with a copy of this judgment, before the 2nd respondent, for further action. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE mns WP(C).No.15042 OF 2020 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ORDER U/S 201(1) 201(1A) OF THE INCOME TAX ACT, 1961 ISSUED BY THE 1ST RESPONDENT DATED 31-12-2019 FOR AY 2017-18 EXHIBIT P2 A TRUE COPY OF THE DEMAND NOTICE FOR AY. 2017-18 DATED 31-12-2019 FOR AN AMOUNT OF RS. 13,00,462/- ISSUED BY THE 1ST RESPONDENT EXHIBIT P3 A TRUE COPY OF THE ORDER U/S. 201(1) 201(1A) OF THE INCOME TAX ACT, 1961 ISSUED BY THE 1ST RESPONDENT DATED 31-12-2019 FOR AY 2018-19 EXHIBIT P4 A TRUE COPY OF THE DEMAND NOTICE FOR AY 2018-19 DATED 31-12-2019 FOR AN AMOUNT OF RS. 12,50,801/- ISSUED BY THE 1ST RESPONDENT EXHIBIT P5 A TRUE COPY OF THE APPEAL FOR AY 2017-18 DATED 29-01- 2020 FILED BEFORE THE 2ND RESPONDENT EXHIBIT P6 A TRUE COPY OF THE APPEAL FOR AY 2018-19 DATED 29-01- 2020 FILED BEFORE THE 2ND RESPONDENT EXHIBIT P7 A TRUE COPY OF THE STATUTORY STAY PETITION FOR FY 2017-18 DATED 03-02-2020 BEFORE THE 1ST RESPONDENT U/S 220(6) EXHIBIT P8 A TRUE COPY OF THE ORDER FOR 2017-18 DATED 17-03-2019 ISSUED BY THE 1ST RESPONDENT EXHIBIT P9 A TRUE COPY OF THE ORDER FOR 2018-19 DATED 17-03-2019 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P10 A TRUE COPY OF THE STAY PETITION FOR AY 2017-18 FILED BEFORE THE 2ND RESPONDENT DATED 24/07/2020. EXHIBIT P11 A TRUE COPY OF THE STAY PETITION FOR AY 2018-19 FILED BEFORE THE 2ND RESPONDENT DATED 24/07/2020. RESPONDENTS EXHIBITS:NIL //TRUE COPY// P.A TO JUDGE "