PALAKKAD SERVICE CO-OPERATIVE BANK LTD., V. THE COMMISSIONER OF INCOME TAX (APPEALS),

WP(C)/3273/2020

AI Insights

The case involves Palakkad Service Co-operative Bank Ltd., which filed a writ petition against the Commissioner of Income Tax (Appeals) and the Assistant Commissioner of Income Tax, seeking relief from the enforcement of certain assessment orders pending the disposal of their appeals. The petitioner argued that the insistence on payment of a portion of the demanded amount as a condition for stay was unjust, referencing a similar case (W.A.No. 1529/2019) where the court had ruled against such a practice. The court, referencing the Full Bench decision in Mavilayi Service Co-operative Service Bank Ltd. v. Commissioner of Income Tax, Calicut, and previous judgments, ruled in favor of the petitioner, ordering that no coercive recovery actions should be taken until the appeals are resolved.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 754209 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 06-02-2020
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Co-operative Service Bank Ltd. v. Commissioner of Income Tax, Calicut [2019 (2) KHC 287], W.A.No. 1529/2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: A KUMAR; P J KUMAR; G MINI; P S SREE PRASAD; JOB ABRAHAM; AJAY ANAND
• Keywords: Appellate Authority; Coercive Steps; Revenue recovery; Stay of demand; Writ of Mandamus
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE ALEXANDER THOMAS THURSDAY, THE 06TH DAY OF FEBRUARY 2020 / 17TH MAGHA, 1947 WP(C).No.3273 OF 2020(H) PETITIONER: PALAKKAD SERVICE CO-OPERATIVE BANK LTD., F-1200, G.B.ROAD, PALAKKAD - 678001, REPRESENTED BY ITS SECRETARY, MR.C.RAMESH KUMAR. BY ADVS. SRI.A.KUMAR SRI.P.J.ANIL KUMAR SRI.G.MINI SRI.P.S.SREEPRASAD SRI.JOB ABRAHAM SRI.AJAY V ANAND RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS), THRISSUR-680001. 2 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1, AAYAKAR BHAVAN, ENGLISH CHURCH ROAD, PALAKKAD-678001. OTHER PRESENT: SRI.JOSE JOSEPH, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C)No.3273/2020 2 ALEXANDER THOMAS, J. ------------------------------------------- W.P .(C)No.3273 of 2020 ---------------------------------------------- Dated this the 6th day of February, 2020 JUDGMENT The prayers in the above Writ Petition (Civil) are as follows: “A. Issue a writ of Mandamus or such other appropriate Writ, order or direction directing the first respondent to consider and pass orders in Exhibit P4 to P6 appeals without insisting for any deposit as a pre-condition for stay of demand under Exhibit P1 to P3 assessment orders. B. Issue a writ of Mandamus or such other appropriate Writ, order or direction restraining the respondents from recovering the amounts under Exhibit P1 to P3 assessment orders through revenue recovery proceedings or in any other manner known to law pending disposal of Exhibit P4 to P6 appeals .” 2. Heard Sri.A.Kumar, learned counsel appearing for the petitioner and Sri.Jose Joseph, learned Standing Counsel for the Income Tax Department appearing for the respondents. 3. In similar circumstances, a Division Bench of this Court in the judgment dated 1.7.2019 in W.A.No. 1529/2019 has taken the view that the insistence for payment of a portion of the amount demanded, as a condition for grant of stay, need not be insisted in cases as in the instant one and that the Division Bench, for reasons stated therein, has ordered that it is for the appellate authority to take a decision on the statutory appeal at the earliest and that until the final decision is rendered by the W.P.(C)No.3273/2020 3 appellate authority in the statutory appeal, coercive steps for recovery and collection of the impugned tax shall be kept in abeyance in the light of the dictum laid down by the Full Bench of this Court in Mavilayi Service Co-operative Service Bank Ltd., v. Commissioner of Income Tax, Calicut [2019 (2) KHC 287]. The Division Bench in the abovesaid judgment dated 1.7.2019 in W.A.No. 1529/2019 has also dealt with the reasons for taking such a view for making such an interim arrangement pending disposal of the main appeal by the statutory appellate authority concerned. The said decision of the Division Bench of this Court in W.A.No. 1529/2019 has been followed by this Court in a series of other cases as in the judgment dated 10.1.2020 in W.P.(C).No.523/2020. Accordingly, following the line of directions and orders already passed by the Division Bench of this Court in the judgment dated 1.7.2019 in W.A.No. 1529/2019 as well as various other judgments rendered by this Court, following the said directions and orders of the Division Bench in the matter of the interim arrangement till the disposal of the main statutory appeal, etc., following orders and directions are issued: It is ordered that the 1st appellate authority shall ensure final disposal of Exts.P-4 to P-6 appeals after affording reasonable opportunity of being heard to the petitioner without much delay and within a reasonable time limit that may be fixed appropriately by the said appellate authority. However, in the interest of justice it is ordered W.P.(C)No.3273/2020 4 that until final orders are passed disposing of Ext.P-4 to P-6 appeals, all coercive steps for the enforcement of the assessment order impugned in the abovesaid appeals shall be kept in abeyance. With these observations and directions, the Writ Petition (Civil) stands finally disposed of. sd/- ALEXANDER THOMAS, JUDGE acd W.P.(C)No.3273/2020 5 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 2013-14 DATED 19.12.2019. EXHIBIT P2 TRUE COPY OF THE ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 2016-17 DATED 19.12.2019. EXHIBIT P3 TRUE COPY OF THE ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 2017-18 DATED 19.12.2019. EXHIBIT P4 TRUE COPY OF THE APPEAL MEMORANDUM FOR THE ASSESSMENT YEAR 2013-14 DATED 13.1.2020 (RELEVANT PAGES). EXHIBIT P5 TRUE COPY OF THE APPEAL MEMORANDUM FOR THE ASSESSMENT YEAR 2016-17 DATED 13.1.2020 (RELEVANT PAGES). EXHIBIT P6 TRUE COPY OF THE APPEAL MEMORANDUM FOR THE ASSESSMENT YEAR 2017-18 DATED 13.1.2020. EXHIBIT P7 TRUE COPY OF THE STAY PETITION FOR THE ASSESSMENT YEAR 2013-14 DATED 13.11.2020. EXHIBIT P8 TRUE COPY OF THE STAY PETITION FOR THE ASSESSMENT YEAR 2016-17 DATED 13.1.2020. EXHIBIT P9 TRUE COPY OF THE STAY PETITION FOR THE ASSESSMENT YEAR 2017-18 DATED 13.1.2020. EXHIBIT P10 COPY OF THE JUDGMENT IN WRIT APPEAL 1529/2019 DATED 1.7.2019. EXHIBIT P11 TRUE COPY OF THE COMMUNICATION DATED 3.2.2020 FOR THE ASSESSMENT YEAR 2013-14. EXHIBIT P12 TRUE COPY OF THE COMMUNICATION DATED 3.2.2020 FOR THE ASSESSMENT YEAR 2016-17. EXHIBIT P13 TRUE COPY OF THE COMMUNICATION DATED 3.2.2020 FOR THE ASSESSMENT YEAR 2017-18. "