NAVAIKULAM SERVICE CO-OPERATIVE BANK LIMITED, V. THE DEPUTY COMMISSIONER OF INCOME TAX,

WP(C)/5682/2019

AI Insights

The case involves the Navikulam Service Co-operative Bank Limited, which is the petitioner, challenging the assessment orders issued by the Income Tax authorities. The petitioner had filed appeals against these orders, along with stay petitions, to the Income Tax Appellate Tribunal. However, before the tribunal could consider the stay petitions, the tax authorities initiated coercive steps. The petitioner filed a writ petition in the High Court of Kerala, seeking to halt these coercive actions until the tribunal could decide on the stay petitions. The court heard arguments from both sides and decided in favor of the petitioner, emphasizing the need for procedural fairness.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 754924 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 25-02-2019
• Assessment Year: misc
• Other Referred Cases: WPC NO. 40553/18
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: C A JOJO; JACOB CHACKO; MATHEWS JOSEPH
• Keywords: Assessment Order; Coercive Steps; Income Tax; Procedural fairness; Stay Petition
• Section: 226(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU MONDAY ,THE 25TH DAY OF FEBRUARY 2019 / 6TH PHALGUNA, 1940 WP(C).No. 5682 of 2019 PETITIONER/S: NAVAIKULAM SERVICE CO-OPERATIVE BANK LIMITED, NO. 964, REPRESENTED BY ITS SECRETARY BINDU .S., W/O. ANILKUMAR.N., AGED 47 YEARS, NAVIKULAM P.O., THIRUVANANTHAPURAM DISTRICT, KERALA, 695 603. BY ADVS. SRI.C.A.JOJO SRI.JACOB CHACKO SRI.MATHEWS JOSEPH RESPONDENT/S: 1 THE DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX OFFICER, CIRCLE-2 (1), KOWDIAR, TRIVANDRUM 695 003. 2 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2 (1), KOWDIAR, TRIVANDRUM 695 003. 3 COMMISSIONER OF INCOME TAX (APPEALS)-1, OFFICE OF THE COMMISSIONER OF INCOME TAX (APPEALS,), TRIVANDRUM 695 003. 4 THE ASSISTANT INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH IS PRESS ROD, KACHERIPADY, KOCHI 682 018. -2- W.P.(C). No. 5682 of 2019 5 BRANCH MANAGER, ICICI BANK, KALLAMBALAM BRANCH THIRUVANANTHAPURAM. 695 605. 6 THE BRANCH MANAGER, THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK, THIRUVANANTHAPURAM 695 513. OTHER PRESENT: SC SRI. CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.02.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: JUDGMENT The petitioner, an assessee under the Income Tax Act, on the rolls of the 2nd respondent, questioned the Exts.P2 and P4 assessment orders, before the 3rd respondent, who rejected it. Later, the petitioner approached the 4th respondent with second appeals. The petitioner has also filed stay petitions in the appeals. Ventilating its grievance that the authorities are taking coercive steps before the appellate authority could consider the stay petition, the petitioner has filed this writ petition. 2. Heard the learned counsel for the petitioner and the -3- W.P.(C). No. 5682 of 2019 learned Standing Counsel for the respondents. 3. I reckon the petitioner has exercised on time its statutory remedy of filing appeals. It appears that it has also filed stay petitions. Procedural fairness demands that the authorities may wait, before taking further steps, until the appellate authority decides on the stay petitions. Therefore, I dispose of the writ petition directing the respondent authority to defer coercive steps until the 4th respondent considers the stay petitions. I also hope that the 4th respondent will dispose of the stay petitions expeditiously. Because of this arrangement Exts.P14 and P15 stand suspended. Sd/- DAMA SESHADRI NAIDU JUDGE das -4- W.P.(C). No. 5682 of 2019 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A COPY OF THE CERTIFICATE IN THIS REGARD ISSUED BY THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), THIRUVANANTHAPURAM DATED 25.11.2015. EXHIBIT P2 A TRUE COPY OF THE ASSESSMENT ORDER DATED 29.12.2016 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 A TRUE COPY OF THE DEMAND NOTICE DATED 29.12.2016 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P4 A TRUE COPY OF THE ASSESSMENT ORDER DATED 29.12.2017 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P5 A TRUE COPY OF THE DEMAND NOTICE DATED 29.12.2016 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P6 A TRUE COPY OF THE APPELLATE ORDER DATED 18.12.2018 ISSUED BY THE 3RD RESPONDENT. EXHIBIT P7 A TRUE COPY OF THE APPELLATE ORDER DATED 18.12.2018 ISSUED BY THE 3RD RESPONDENT. EXHIBIT P8 A TRUE COPY OF ORDER GIVING EFFECT TO ORDER U/S 250 ISSUED BY THE 1ST RESPONDENT FOR AY 2014-15 DATED 22.1.2019. EXHIBIT P9 A TRUE COPY OF ORDER GIVING EFFECT TO ORDER U/S 250 ISSUED BY THE 1ST RESPONDENT FOR AY 2015-16 DATED 21.1.2019. -5- W.P.(C). No. 5682 of 2019 EXHIBIT P10 A TRUE COPY OF THE APPEAL FOR AY 2014- 15 DATED 20.2.2019 BEFORE THE 4TH RESPONDENT. EXHIBIT P11 A TRUE COPY OF THE STY PETITION FOR AY 2014-15 DATED 20.02.2019 BEFORE THE 4TH RESPONDENT. EXHIBIT P12 A TRUE COPY OF THE APPEAL FOR AY 2015- 6 DATED 20.2.2019 BEFORE THE 4TH RESPONDENT. EXHIBIT P13 A TRUE COPY OF THE STAY PETITION FOR AY 2015-16 DATED 20.2.2019 BEFORE THE 4TH RESPONDENT. EXHIBIT P14 A TRUE COPY OF THE NOTICE U/S 226 (3) OF THE INCOME TAX ACT ISSUED TO THE 5TH RESPONDENT BY THE 1ST RESPONDENT DATED 22.2.2019. EXHIBIT P15 A TRUE COPY OF THE NOTICE U/S 226 (3) OF THE INCOME TAX ACT ISSUED TO THE 6TH RESPONDENT BY THE 1ST RESPONDENT DATED 22.2.2019. EXHIBIT P16 A TRUE COPY OF THE JUDGMENT OF THIS HONBLE COURT IN SIMILAR CASE IN WPC NO. 40553/18 DATED 4.1.2019. "