THE MADAI CO-OPERATIVE RURAL BANK LTD. V. INCOME TAX OFFICER

WP(C)/8828/2020

AI Insights

The case involves the Madai Co-operative Rural Bank Ltd., which challenged the assessment orders issued by the Income Tax Officer and the subsequent order by the Commissioner of Income Tax (Appeals) that conditioned a stay on the payment of 20% of the disputed tax amount. The petitioner had filed appeals against the assessment orders and sought a stay on the recovery of the disputed amounts. The court found that similar cases had been granted interim stays and directed the appellate authority to resolve the appeals without coercive recovery actions pending the decision.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 768758 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 27-07-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: S RAJ; C T SUJA
• Keywords: Appeal; Assessment Order; Income Tax; Recovery proceedings; Stay Petition
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR MONDAY, THE 27TH DAY OF JULY 2020/5TH SRAVANA, 1942 W.P(C).No.8828 OF 2020(C) PETITIONER: THE MADAI CO-OPERATIVE RURAL BANK LTD. PAYANGADI .P.O, KANNUR-670303, REPRESENTED BY ITS SECRETARY P.VIMALA. BY ADVS.SRI.S.ARUN RAJ SMT.C.T.SUJA RESPONDENTS: 1 INCOME TAX OFFICER WARD-1 AND TPS,AAYAKAR BHAVAN, KANNUR-670006. 2 THE COMMISSIONER OF INCOME TAX(APPEALS), OFFICE OF THE COMMISSIONER OF INCOME TAX (APPEALS), NORTH BLOCK,MANANCHIRA, KOZHIKODE-673001. BY SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.07.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No.8828/2020 :: 2 :: J U D G M E N T Against Exts.P1 and P2 assessment orders under the Income Tax Act, the petitioner has preferred Exts.P3 and P4 appeals together with Exts.P5 and P6 stay petitions before the 2nd respondent. It would appear that by Ext.P7 order passed by the 2nd respondent in the stay petition, the petitioner was directed to pay 20% of the disputed amount as a condition for stay of the balance amount pending disposal of the appeal. 2. The learned counsel for the petitioner would point out that in similar matter this Court has directed the appellate authority to pass final orders in the appeal and to refrain from coercive steps for recovery of any amount in pending disposal of the appeal by the appellate authority. Taking note of the said submission and finding that in similar matters this Court has granted an interim stay of recovery proceedings, pending disposal of the appeal by the appellate authority, I quash Ext.P7 order and dispose the writ petition by W.P.(C).No.8828/2020 :: 3 :: directing the 2nd respondent to consider and pass orders on Exts.P3 and P4 appeals within an outer time limit of six 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 P2 assessment orders shall be kept in abeyance till such time as orders are passed by the 2nd respondent as directed above and the order communicated to the petitioner. The petitioner shall produce a copy of this judgment together with a copy of the writ petition before the 2nd respondent for further action. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE sd W.P.(C).No.8828/2020 :: 4 :: APPENDIX PETITIONER'S EXHIBITS: EXHIBIT 1 TRUE COPY OF THE ASSESSMENT ORDER DATED 17.12.2016 PASSED BY THE 1ST RESPONDENT AND THE DEMAND NOTICE FOR THE AY-2014-15 EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 21.12.2018 PASSED BY THE 1ST RESPONDENT AND THE DEMAND NOTICE FOR THE AY 2016-17 EXHIBIT P2 TRUE COPY OF THE ASSESSMENT ORDER DATED 21.12.2018 PASSED BY THE 1ST RESPONDENT AND THE DEMAND NOTICE FOR THE 2016-17 EXHIBIT P3 TRUE COPY OF THE STATUT0RY FIRST APPEAL FILED BY THE PETITIONER SOCIETY BEFORE THE SECOND RESPONDENT FOR THE AY 2014-15 EXHIBIT P4 TRUE COPY OF THE STATUTORY FIRST APPEAL FILED BY THE PETITIONER SOCIETY BEFORE THE SECOND RESPONDENT FOR THE AY 2016-17 EXHIBIT P5 TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER SOCIETY BEFORE THE SECOND RESPONDENT FOR THE AY 2014-15 EXHIBIT P6 TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER SOCIETY BEFORE THE SECOND RESPONDENT FOR THE AY 2016-17 EXHIBIT P7 TRUE COPY OF THE ORDER DATED 13-3-2020 PASSED BY THE 2ND RESPONDENT DISPOSING THE STAY PETITIONS. RESPONDENTS EXHIBITS: NIL. //TRUE COPY// P.S. TO JUDGE "