THE PATTIKKAD SERVICE CO-OPERATIVE BANK LIMITED NO.P.455 V. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/748/2020

AI Insights

The case involves the Pattikkad Service Co-operative Bank Limited, which filed a writ petition against the Commissioner of Income Tax (Appeals) and the Income Tax Officer, Ward (4), Tirur. The petitioner sought a writ of mandamus to compel the 1st respondent to consider their appeal on merit and to restrain the respondents from initiating coercive proceedings until the appeal was decided. The court referenced a previous Division Bench decision and similar cases to support its decision to stay coercive recovery actions pending the appeal's resolution.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 695405 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 13-01-2020
• 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, W.P.(C).No.523/2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: O D SIVADAS
• Keywords: Assessment Order; Coercive Proceedings; Income tax appeal; Stay of recovery; Writ of Mandamus
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE ALEXANDER THOMAS MONDAY, THE 13TH DAY OF JANUARY 2020 / 23RD POUSHA, 1941 WP(C).No.748 OF 2020(P) PETITIONER: THE PATTIKKAD SERVICE CO-OPERATIVE BANK LIMITED NO.P.455 PATTIKKAD P.O, MALAPPURAM DISTRICT, 679 325, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, KOZHIKODE-673 001 2 THE INCOME TAX OFFICER, WARD (4), TIRUR-676 001 OTHER PRESENT: SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13.01.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C)N0.748/2020 2 ALEXANDER THOMAS, J. ------------------------------------------- W.P .(C)No. 748 of 2020 ---------------------------------------------- Dated this the 13th day of January, 2020 JUDGMENT The main prayer in the above Writ Petition (Civil) is as follows: “1) Issue a writ of mandamus or other appropriate writ, order or direction to the 1st respondent to consider Ext.P2 appeal on merit and also restraining the respondents from initiating coercive proceedings against the petitioner society till orders are passed in Ext.P2 appeal on merit.” 2. Heard Sri. O.D. Sivadas, learned counsel appearing for the petitioner and Sri.Christopher Abraham, 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 appellate authority in the statutory appeal, coercive steps for recovery and W.P.(C)N0.748/2020 3 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 Ext.P-2 appeal 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 that until final W.P.(C)N0.748/2020 4 orders are passed disposing of Ext.P-2 appeal, all coercive steps for the enforcement of the assessment order impugned in the abovesaid appeal 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)N0.748/2020 5 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 21.12.2019 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2017-18. EXHIBIT P2 COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2017-18. "