THE PUNALUR SERVICE CO-OPERATIVE BANK LIMITED V. THE INCOME TAX OFFICER

WP(C)/27609/2019

AI Insights

The case involves the Punalur Service Co-operative Bank Limited, which challenged the rectification order passed by the Commissioner of Income Tax (Appeals) under the Income Tax Act for the assessment year 2015-2016. The bank had filed an appeal and a stay petition against the rectification order, but recovery steps were initiated by the respondents before the stay petition was considered. The petitioner argued that these premature recovery actions were unjust. The court heard arguments from both sides and decided to halt the recovery actions until the stay petition was duly considered and a decision was made.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 754603 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 17-10-2019
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: T R HARIKUMAR; ARJUN RAGHAVAN
• Keywords: Assessment Order; Income Tax; Rectification Order; Revenue recovery; Stay Petition
• Section: 154; 271(1)(c); 271B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR THURSDAY, THE 17TH DAY OF OCTOBER 2019 / 25TH ASWINA, 1941 WP(C).No.27609 OF 2019 PETITIONER: THE PUNALUR SERVICE CO-OPERATIVE BANK LIMITED REPRESENTED BY ITS SECRETARY, PUNALUR, KOLLAM DISTRICT PIN 691 305 BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENTS: 1 THE INCOME TAX OFFICER WARD-2 OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX, KOLLAM RANGE, AAYAKAR BHAVAN,. KARBALA JUNCTION, KOLLAM PIN 691 001 2 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM PIN 695 003 3 THE REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, KENDRIYA BHAVAN, BLOCK NO. C1 AND C2 1ST FLOOR, KAKKANAD, COCHIN 682 030 OTHER PRESENT: SC SRI.CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.10.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C) No.27609/19 2 JUDGMENT Against Ext.P3 rectification order passed by the CIT (Appeals) under the Income Tax Act for the assessment year 2015-2016, the petitioner has preferred Ext.P4 appeal and Ext.P5 stay petition before the 3rd respondent. Exts.P6, P7 and P8 are the revenue recovery notices issued against the petitioner. 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.P5 stay petition within a period of two months from the date of receipt of a copy of this judgment, after hearing the petitioner. 2. Recovery steps pursuant to Exts.P6, P7 and P8 revenue recovery notices 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 W.P(C) No.27609/19 3 respondent as directed above and communicated to the petitioner. 3. The petitioner shall produce a copy of the writ petition together 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.27609/19 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2015-2016 DATED 15-12-2017 EXHIBIT P2 A TRUE COPY OF THE ORDER DATED 18-12-2018 IN ITA NO. 207/EF/KLM/CIT(A) /TVM/2017-18 EXHIBIT P3 A TRUE COPY OF THE ORDER DATED 03-09-2019 IN ITA NO. 207/EF/KLM/CIT(A)/TVM/2017-18 ISSUED BY THE 2ND RESPONDENT UNDER SECTION 154 OF THE INCOME TAX ACT EXHIBIT P4 A TRUE COPY OF THE APPEAL MEMORANDUM ALONG WITH AFFIDAVIT AND CHELAN DATED 05-10-2019 EXHIBIT P5 A TRUE COPY OF THE STAY PETITION FILED ALONG WITH EXT P4 APPEAL DATED 05-10-2019 EXHIBIT P6 A TRUE COPY OF THE NOTICE DATED 14-10-2019 ISSUED BY THE 1ST RESPONDENT EXHIBIT P7 A TRUE COPY OF THE NOTICE DATED 14-10-2019, ISSUED SECTION 271 B THE INCOME TAX ACT EXHIBIT P8 A TRUE COPY OF THE NOTICE DATED 14-10-2019, ISSUED SECTION 271(1) (C)0 OF THE INCOME TAX ACT "