PANAMARAM SERVICE COOPERATIVE BANK LTD. V. INCOME TAX OFFICER

WP(C)/29173/2022

AI Insights

The case involves the Panamaram Service Cooperative Bank Ltd., which filed a writ petition against the Income Tax Department's demand notices and penalty orders under various sections of the Income Tax Act, 1961. The petitioner challenged the demand notice and penalty orders, which amounted to significant sums, claiming that enforcement of these orders pending their appeals would cause undue hardship. The court heard arguments from both sides and decided to defer any coercive actions until the appeals are resolved, emphasizing the need for a fair chance for the petitioner to contest the penalties.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 750563 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 06-09-2022
• Assessment Year: misc
• Other Referred Cases: WP(C) 30703/2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Assessee Lawyers: G KEERTHIVAS
• Keywords: Appeal; Coercive Proceedings; Faceless Appeal; Income Tax; Penalty
• Section: 271D; 271E; 269SS; 269T; 156

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH TUESDAY, THE 6TH DAY OF SEPTEMBER 2022 / 15TH BHADRA, 1944 WP(C) NO. 29173 OF 2022 PETITIONER: PANAMARAM SERVICE COOPERATIVE BANK LTD. PANAMARAM P.O., WAYANAD DISTRICT-670121 REPRESENTED BY ITS SECRETARY, PIN – 670121 BY ADV G.KEERTHIVAS RESPONDENTS 1 INCOME TAX OFFICER AYAKAR BHAVAN, KALPETTA-673122., PIN – 673122 2 JOINT COMMISSIONER OF INCOME TAX (APPEALS) OFFICE OF THE INCOME TAX DEPARTMENT, RANGE-II, KOZHIKODE-673001. 3 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, KOZHIKODE DISTRICT-673001. 4 PRINCIPAL COMMISSIONER OF INCOME TAX AYAKAR BHAVAN, KOZHIKODE – 673001. W.P(C) No.29173 of 2022 2 ] 5 NATIONAL FACELESS APPEAL CENTRE C BLOCK, SPM CIVIC CENTRE, NEW DELHI - 110001, REPRESENTED BY PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX (NFAC), PIN – 110001 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.09.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C) No.29173 of 2022 3 ] J U D G M E N T Dated this the 6th day of September, 2022 Aggrieved by Ext.P1 demand notice issued under Section 156 of the Income Tax Act, 1961 and Ext.P2 order issued under Section 271E read with Section 269T of the Income Tax Act, 1961, the petitioner is before this Court. 2. The petitioner states that by Ext.P1 order, a penalty of 43,84,36,490/- has been imposed on the petitioner under ₹ Section 271D and by Ext.P2 order of the Joint Commissioner of Income Tax, the petitioner is required to pay 45,64,02,929/- ₹ along with penalty leviable under Section 271E of the Income Tax Act. The petitioner states that aggrieved by Exts.P1 and P2, the petitioner has filed Exts.P3 and P4 appeals before the Commissioner of Income Tax (Appeals) and that pending the appeals, if coercive proceedings are taken against the petitioner, the petitioner will be put to untold hardship and loss. W.P(C) No.29173 of 2022 4 ] 3. I have heard the learned counsel for the petitioner and the learned Standing Counsel representing the respondents. 4. Ext.P1 is a levy made by the respondents under Section 271D of the Income Tax Act, 1961. Ext.P2 is an order issued under Section 271E read with Section 269T of the Income Tax Act, 1961. Aggrieved by those orders, the petitioner has filed Exts.P3 and P4 appeals before the 3rd respondent. The petitioner states that the petitioner has a very fair chance in getting the impugned orders reversed in the appeals. 5. In such circumstances, enforcement of the impugned orders pending the appeals filed by petitioner would be unjustifiable. The petitioner would state that the 3rd respondent has already forwarded the appeal to the National Faceless Appeal Centre. In the facts and circumstance of the case, the writ petition is disposed of directing the 5th respondent to consider and pass appropriate orders on Exts.P3 and P4 appeals preferred by the petitioner, in accordance with law, within a period of three W.P(C) No.29173 of 2022 5 ] months. Till the respondents pass orders on the appeals preferred by the petitioner, any coercive proceedings pursuant to Exts.P1 and P2 shall stand deferred. Sd/- N. NAGARESH, JUDGE smm/ 06.09.2022 W.P(C) No.29173 of 2022 6 ] APPENDIX OF WP(C) 29173/2022 PETITIONER EXHIBITS Exhibit1 TRUE COPY OF THE ORDER DATED 26.7.2018 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 271D READ WITH SECTION 269SS OF THE INCOME TAX ACT AGAINST THE PETITIONER. Exhibit P2 TRUE COPY OF THE ORDER DATED 26.7.2018 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 271E READ WITH SECTION 269SS OF THE INCOME TAX ACT AGAINST THE PETITIONER. Exhibit P3 TRUE COPY OF THE APPEAL PREFERRED BY THE PETITIONER AGAINST EXHIBIT P1 DATED 30.8.2018 BEFORE THE 3RD RESPONDENT. Exhibit P4 TRUE COPY OF THE APPEAL PREFERRED AGAINST EXT P2 ORDER DATED 30.8.2018 BEFORE THE 3RD RESPONDENT. Exhibit P5 TRUE COPY OF THE ORDER DATED 28.07.2022 ISSUED BY THE 4TH RESPONDENT TO THE PETITIONER. Exhibit P6 TRUE COPY OF THE JUDGMENT DATED 03.01.2022 IN WP(C) 30703/2021 OF THIS HON'BLE COURT "