THE KUNDARA PANCHAYATH SERVICE CO-OPERATIVE BANK LTD.NO.401 V. THE INCOME TAX OFFICER

WP(C)/27514/2019

AI Insights

The case involves the Kundara Panchayath Service Co-operative Bank Ltd., which challenged the recovery steps taken by the Income Tax authorities based on an assessment order for the year 2016-2017. The bank had filed an appeal against the assessment order, which was dismissed, leading to further appeals and a stay petition. The primary legal issue was the premature recovery actions taken by the tax authorities before the stay petition was considered. The court's intervention was sought to halt these recovery actions pending the decision on the stay petition.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 765867 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 16-10-2019
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: THUSHARA JAMES
• Assessee Lawyers: T R HARIKUMAR; ARJUN RAGHAVAN
• Keywords: Appeal; Assessment Order; Income Tax; Recovery Steps; Stay Petition
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR WEDNESDAY, THE 16TH DAY OF OCTOBER 2019 / 24TH ASWINA, 1941 WP(C).No.27514 OF 2019(L) PETITIONER: THE KUNDARA PANCHAYATH SERVICE CO-OPERATIVE BANK LTD.NO.401 REPRESENTED BY ITS SECRETARY, KUNDARA P.O. KOLLAM DISTRICT 691 501. BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENTS: 1 THE INCOME TAX OFFICER WARD-4, OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX, KOLLAM RANGE, AAYAKAR BHAVAN, KARBALA JUNCTION, KOLLAM 691 001. 2 THE COMMIIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM 695 003. 3 THE REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, KENDRIYA BHAVAN, BLOCK NO. C1 AND C2 I ST FLOOR, KAKKANAD, COCHIN 682 030. OTHER PRESENT: GP-SMT. THUSHARA JAMES THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16.10.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C) No.27514/19 2 JUDGMENT Against Ext.P1 assessment order for the assessment year 2016-2017 under the Income Tax Act, the petitioner has preferred Ext.P2 appeal before the First Appellate Authority. The said appeal was, however, dismissed by Ext.P4 order. Aggrieved by the same, the petitioner preferred Ext.P5 appeal and Ext.P6 stay petition before the 3rd respondent. Ext.P7 is the demand notice. It is the case of the petitioner that even prior to considering the stay petition, recovery steps are taken by the respondents against the petitioner for recovery of the amounts confirmed by Ext.P1 assessment order. 2. I have heard Sri.T.R.Harikumar, the learned counsel appearing for the petitioner and Sri.Christopher Abraham, the learned Standing Counsel for the respondents. 3. On a consideration of the facts and circumstances of the case as also the submissions made across the Bar, I dispose the writ petition with the following directions: 1. The 3rd respondent shall consider and pass reasoned orders on Ext.P6 stay petition within a period of one month from the date of receipt of a copy of this judgment, after hearing the petitioner. 2. Recovery steps pursuant to Ext.P7 Demand notice for recovery of amounts confirmed against the petitioner by Ext.P1 assessment order shall be kept in abeyance till such time as orders are passed by the 3rd respondent as directed above and communicated to the petitioner. 3. The petitioner shall produce a copy of the writ petition together W.P(C) No.27514/19 3 with a copy of this judgment, before the 3rd respondent, for further action. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE okb //True copy// P.S. to Judge W.P(C) No.27514/19 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE RELEVANT PAGES OF THE ASSESSMENT ORDER FOR THE YEAR 2016-2017 DATED 28.12.2018. EXHIBIT P2 A TRUE COPY OF THE ONLINE APPEAL FILED BEFORE THE 2ND RESPONDENT ON 25.1.2019, AGAINST EXT. P1 ASSESSMENT. ORDER. EXHIBIT P3 A TRUE COPY OF THE JUDGMENT DATED 21.2.2019 IN WPC NO. 5070 OF 2019. EXHIBIT P4 A TRUE COPY OF THE RELEVANT PAGES OF THE ORDER DATED 3.9.2019 IN ITA NO. 495/KLM/CIT (A) /TVM/2018-19 OF THE 2ND RESPONDENT. EXHIBIT P5 A TRUE COPY OF THE APPEAL MEMORANDUM FIELD BEFORE THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH ALONG WITH AFFIDAVIT AND CHELAN DATED 5.10.2019. EXHIBIT P6 A TRUE COPY OF THE STAY PETITION FILED ALONG WITH EXT. P5 APPEAL. EXHIBIT P7 A TRUE COPY OF THE NOTICE NO. W- 4/KLM/ARREAR DEMAND DATED 1/10/2019 ISSUED BY THE 1ST RESPONDENT. "