THE VENGERI SERVICE CO-OPERATIVE BANK LIMITED,NO.2714 V. INCOME TAX OFFICER

WP(C)/34728/2019

AI Insights

The case involves the Vengeri Service Co-operative Bank Limited, which challenged penalty orders issued by the Income Tax Officer and the Joint Commissioner of Income Tax under sections 271D and 271E of the Income Tax Act. The bank had filed appeals and stay petitions against these penalties, which were pending before the Commissioner of Income Tax (Appeals). However, an interim order required the bank to pay 20% of the disputed amount. The bank sought relief from the High Court, referencing a similar case where the court had directed the Appellate Authority to decide on the appeals before any recovery actions were taken. The High Court agreed with this precedent and directed the Appellate Authority to expedite the decision on the appeals, thereby suspending the recovery actions until the appeals were resolved.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 695375 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 18-12-2019
• Assessment Year: misc
• Other Referred Cases: WPC 6907 of 2019 and other connected matters
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: M P KUMAR; P C GOPINATH; BINDU SREEDHAR; ASIF N
• Keywords: Appeal; Income Tax Act; Penalty order; Stay Petition
• Section: 271D; 271E; 220(6)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR WEDNESDAY, THE 18TH DAY OF DECEMBER 2019/27TH AGRAHAYANA, 1941 W.P(C).No.34728 OF 2019(M) PETITIONER: THE VENGERI SERVICE CO-OPERATIVE BANK LIMITED,NO.2714 REP BY ITS SECRETARY, VENGERI P.O, KOZHIKODE 673 010. BY ADVS.SRI.M.P.ASHOK KUMAR SRI.P.C.GOPINATH SMT.BINDU SREEDHAR SHRI.ASIF N RESPONDENTS: 1 INCOME TAX OFFICER AAYAKAR BHAVAN, KOZHIKODE 673 001. 2 JOINT COMMISSIONER OF INCOME TAX, OFFICE OF THE INCOME TAX DEPARTMENT, RANGE-2, KOZHIKODE 673 001. 3 COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, KOZHIKODE 673 001. BY SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.12.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No.34728/2019 :: 2 :: J U D G M E N T Against Exts.P1 and P2 penalty 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 3rd respondent. It is stated that while the stay petitions are pending consideration before the 3rd respondent/Appellate Authority, by Ext.P7 order issued under Section 220(6) of the Income Tax Act, the petitioner has been directed to pay 20% of the disputed amount pending disposal of the appeals. The learned counsel for the petitioner refers to Ext.P8 judgment of this Court, where, under similar circumstances, this Court had directed the Appellate Authority to consider and pass orders in the appeal and kept the recovery proceedings in abeyance till such time as the Appellate Authority decided the appeal. Taking cue from the said judgment, I dispose the writ petition by directing the 3rd respondent/Appellate Authority to consider and pass reasoned orders on Exts.P3 and P4 appeals within an outer time limit of six months from the date of W.P.(C).No.34728/2019 :: 3 :: 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 penalty orders shall be kept in abeyance till such time as orders are passed by the 3rd respondent, as directed, and the order communicated to the petitioner. In the light of the directions above, Ext.P7 order impugned in the writ petition is set aside. 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 prp/18/12/19 W.P.(C).No.34728/2019 :: 4 :: APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 PHOTOCOPY OF PENALTY ORDER DATED 05-08-2019 BY 2ND RESPONDENT US 27ID IT ACT EXHIBIT P2 PHOTOCOPY OF PENALTY ORDER DATED 05-08-2019 BY 2ND RESPONDENT US 271E IT ACT EXHIBIT P3 PHOTOCOPY OF THE APPEAL AGAINST SECTION 27ID PENDING BEFORE THE 3RD RESPONDENT EXHIBIT P4 PHOTOCOPY OF THE APPEAL AGAINST SECTION 27IE PENDING BEFORE THE 3RD RESPONDENT. EXHIBIT P5 PHOTOCOPY OF THE STAY PETITION AGAINST EXT P1 BEFORE 3RD RESPONDENT DATED 22-10-2019. EXHIBIT P6 PHOTOCOPY OF THE STAY PETITION AGAINST EXT P2 BEFORE 3RD RESPONDENT DATED 22-10-2019. EXHIBIT P7 PHOTOCOPY OF THE INTERIM ORDER PASSED IN THE STAY PETITION DATED 13/12/2019. EXHIBIT P8 RESPONDENTS EXHIBITS: PHOTOCOPY OF THE COMMON JUDGMENT IN WPC 6907 OF 2019 AND OTHER CONNECTED MATTERS DATED 11-10-2019 NIL. //TRUE COPY// P.S. TO JUDGE "