THE VAMANAPURAM SERVICE CO-OPERATIVE BANK LTD.NO.927 V. THE INCOME TAX OFFICER

WP(C)/33349/2019

AI Insights

The case involves the Vamanapuram Service Co-operative Bank Ltd., which challenged penalty orders issued by the Income Tax Officer under Section 271B of the Income Tax Act for the assessment years 2011-2012 and 2015-2016. The bank filed appeals and stay petitions against these orders, which were not considered before the respondents initiated recovery steps. The High Court of Kerala intervened to halt these recovery actions pending the decision on the stay petitions.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 761092 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 06-12-2019
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM; THOMAS ABRAHAM
• Assessee Lawyers: ARJUN RAGHAVAN; ADITHYA RAJEEV
• Keywords: Garnishee notice; Penalty orders; Recovery Steps; Stay Petition
• Section: 271B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR FRIDAY, THE 06TH DAY OF DECEMBER 2019 / 15TH AGRAHAYANA, 1941 WP(C).No.33349 OF 2019(P) PETITIONER/S: THE VAMANAPURAM SERVICE CO-OPERATIVE BANK LTD.NO.927 REPRESENTED BY ITS SECRETARY, VAMANAPURAM P. O., THIRUVANANTHAPURAM DISTRICT - 695 606. BY ADVS. SRI.ARJUN RAGHAVAN SRI.ADITHYA RAJEEV RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD -2(3), OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX, RANGE - 2, 1ST FLOOR, AYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM DISTRICT - 695 003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM ISTRICT - 695 003. 3 THE THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK LTD. REPRESENTED BY ITS GENERAL MANAGER, HEAD OFFICE, EAST FORT, THIRUVANANTHAPURAM - 695 023. R1 & R2 BY SRI.CHRISTOPHER ABRAHAM,SC R3 BY SRI.THOMAS ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.12.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.33349 OF 2019(P) 2 JUDGMENT Against Exts.P1 and P2 penalty orders under the Income Tax Act, the petitioner has preferred Exts.P7 and P9 appeals together with Exts.P8 and P10 stay petitions before the 2nd respondent appellate authority. 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 Exts.P1 and P2 penalty orders. 2. I have heard the learned counsel appearing for the petitioner and also the learned Government Pleader appearing for the respondents. 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 2nd respondent shall consider and pass reasoned orders on Exts.P8 and P10 stay petitions within a period of two months from the date of receipt of a copy of this judgment, after hearing the petitioner. 2. Recovery steps for recovery of amounts confirmed against the petitioner by Exts.P1 and P2 assessment orders including further proceedings pursuant to Exts.P11 and P12 garnishee notices shall be kept in abeyance till such time as orders are passed by the 2nd respondent as directed above and communicated to the petitioner. It is made clear that during the period when the stay granted by this Court is in WP(C).No.33349 OF 2019(P) 3 operation, the petitioner is permitted to operate its bank account covered by Exts.P11 and P12. 3. The petitioner shall produce a copy of the writ petition together with a copy of this judgment, before the 2nd respondent, for further action. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE sd WP(C).No.33349 OF 2019(P) 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ORDER DATED 22.5.2018, ISSUED BY THE 1ST RESPONDENT UNDER SECTION 271 B IMPOSING PENALTY FOR THE ASSESSMENT YEAR 2011 - 2012. EXHIBIT P2 A TRUE COPY OF THE ORDER DATED 22.5.2018, ISSUED BY THE 1ST RESPONDENT UNDER SECTION 271 B IMPOSING PENALTY FOR THE ASSESSMENT YEAR 2015 - 2016. EXHIBIT P3 A TRUE COPY OF THE COMMUNICATION DATED 8.11.2019, ISSUED BY THE 2ND RESPONDENT, FOR THE ASSESSMENT YEAR 2011 - 2012. EXHIBIT P4 A TRUE COPY OF THE COMMUNICATION DATED 8.11.2019, ISSUED BY THE 2ND RESPONDENT, FOR THE ASSESSMENT YEAR 2015 - 2016. EXHIBIT P5 A TRUE COPY OF THE COMMUNICATION DATED 13.11.2019, ISSUED BY THE 2ND RESPONDENT, FOR THE ASSESSMENT YEAR 2011 - 2012. EXHIBIT P6 A TRUE COPY OF THE COMMUNICATION DATED 13.11.2019, ISSUED BY THE 2ND RESPONDENT, FOR THE ASSESSMENT YEAR 2015 - 2016. EXHIBIT P7 A TRUE COPY OF THE ONLINE APPEAL ALONG WITH GROUNDS OF APPEAL AND COVERING LETTER DATED 18.11.2019, FOR THE ASSESSMENT YEAR 2011 - 2012. EXHIBIT P8 A TRUE COPY OF THE STAY PETITION FILED ALONG WITH EXT.P7 APPEAL DATED 4.12.2019. EXHIBIT P9 A TRUE COPY OF THE ONLINE APPEAL ALONG WITH GROUNDS OF APPEAL AND COVERING LETTER DATED 18.11.2019, FOR THE ASSESSMENT YEAR 2015 - 2016. EXHIBIT P10 A TRUE COPY OF THE STAY PETITION FILED ALONG WITH EXT. P9 APPEAL DATED 4.12.2019. EXHIBIT P11 A TRUE COPY OF THE GARNISHEE NOTICE DATED 18.11.2019 ISSUED BY THE 1ST RESPONDENT TO THE 3RD RESPONDENT. EXHIBIT P12 A TRUE COPY OF THE GARNISHEE NOTICE DATED 19.11.2019 ISSUED BY THE 1ST RESPONDENT TO THE 3RD RESPONDENT. sd "