THE PERINGOTTUKURUSSI SERVICE CO-OPERATIVE BANK LTD. NO.P 519, V. THE INCOME TAX OFFICER,

WP(C)/3329/2020

AI Insights

The case involves the Peringottukurussi Service Co-operative Bank Ltd., which filed a writ petition against the Income Tax Officer and the Commissioner of Income Tax (Appeals) concerning the assessment order and demand notice for the assessment year 2017-18. The petitioner sought to stay the operation of the demand and recovery proceedings until the appeal before the Commissioner of Income Tax (Appeals) was decided. The court referenced a series of judgments, including a Division Bench decision in W.A.No. 1529/2019, which established that coercive recovery should be stayed pending the decision on the statutory appeal. The court emphasized the need for the appellate authority to expedite the appeal process and ensure justice.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 754190 (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, W.P.(C).No.523/2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: C A JOJO; JACOB CHACKO; MATHEWS JOSEPH; SWATHY S
• Keywords: Assessment Order; Coercive Recovery; Income Tax; Stay of demand; Writ petition
• Section: 220(6)

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.3329 OF 2020(M) PETITIONER/S: THE PERINGOTTUKURUSSI SERVICE CO-OPERATIVE BANK LTD. NO.P 519, PARUTHIPULLY P.O., PALAKKAD DISTRICT, PIN- 678573, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SRI.JACOB CHACKO SRI.MATHEWS JOSEPH SMT.SWATHY S. RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD 5, AYAKAR BHAVAN, ENGLISH CHURCH ROAD, PALAKKAD- 678014. 2 THE COMMISSIONER OF INCOAM TAX (APPEALS), AYAKAR BHAVAN, NEAR SAKTHAN STAND, THRISSUR-680001. 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.3329/2020 2 ALEXANDER THOMAS, J. ------------------------------------------- W.P .(C)No. 3329 of 2020 ---------------------------------------------- Dated this the 6th day of February, 2020 JUDGMENT The prayers in the above Writ Petition (Civil) are as follows: “i) to stay the operation of exhibit P5 order for AY 2017-18 and further recovery till the final disposal of the Ext.P3 appeal before the 2nd respondent within a time limit. ii) to issue a writ of mandamus directing to consider the Ext.P3 appeal on merit and also restrain the respondents from initiating coercive proceedings against the petitioner society till the final orders are passed in the pending appeals. iii) to issue a writ of certiorari quashing Ext.P5 and P2 demands till the final orders are passed in Appeals. iv) to stay all coercive proceedings of recovery till the appeals are disposed of in a time frame.” 2. Heard Sri. C.A. Jojo, 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.3329/2020 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 Ext.P-3 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)No.3329/2020 4 orders are passed disposing of Ext.P-3 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)No.3329/2020 5 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER AY 2017-18 DATED 17/12/2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 A TRUE COPY OF THE DEMAND NOTICE 2017-18 DATED 17/12/2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 A TRUE COPY OF THE APPEAL FOR AY 2017-18 DATED 15/01/2020 FILED BEFORE THE 2ND RESPONDENT. EXHIBIT P4 A TRUE COPY OF THE STATUTORY STAY PETITION DATED 17/01/2020 FILED BEFORE THE 1ST RESPONDENT. EXHIBIT P5 A TRUE COPY OF THE ORDER U/S. 220(6) DISPOSING THE STAY PETITION DATED 31/01/2020 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P6 A TRUE COPY OF THE JUDGMENT IN WA NO.1536/2019 DATED 01/07/2019. "