Vengakkunnummal Harikumar V. The Assistant Commissioner of Income Tax, Central Circle-2, Kozhikode and Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, New Delhi and The Service Co-Operative Bank Ltd. No.F.583 and Malappuram District Co-Operative Bank Ltd and Nannambra Service Co-Operative Bank Limited No.M393

WP(C)/37725/2022

AI Insights

The case involves Vengakkunnummal Harikumar, the petitioner, who challenged the garnishee proceedings initiated against him for non-payment of assessed tax under the Income Tax Act, 1961. The proceedings were based on the assessment orders for several years, against which the petitioner had filed appeals and deposited 20% of the disputed tax. The main legal contention was whether the garnishee orders should continue despite the deposit and the automatic stay of recovery actions as per the guidelines. The respondents included various tax authorities and cooperative banks involved in the garnishee actions. The court's decision to dispose of the petition was based on the expiration of the attachment orders and the petitioner's compliance with the tax dispute resolution guidelines.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 821254 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 19-01-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: NAVANEETH NATH; C R SYAMKUMAR; RENOY HELEN; P A SHAH; ESM KABEER; M SASINDRAN; ATHUL ROY SUSIE; B VARGHESE
• Assessee Lawyers: ANIL NAIR; TELMA EDATHARA; VINEETA KRISHNAN; ANJANA P K BIJU
• Keywords: Assessment orders; Automatic Stay; Garnishee proceedings; Provisional attachment; Tax demand
• Section: 220(6); 226(3); 281B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH FRIDAY, THE 19TH DAY OF JANUARY 2024 / 29TH POUSHA, 1945 WP(C) NO. 37725 OF 2022 PETITIONER/S: VENGAKKUNNUMMAL HARIKUMAR, ARNP/XI/89, JYOTHIS, KUNNUMPURAM-KODAKKALLU, A.R. NAGAR, MALAPPURAM, PIN - 676305 BY ADVS. ANIL D. NAIR TELMA RAJU EDATHARA VINEETA KRISHNAN ANJANA A. P.K.BIJU RESPONDENT/S: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, KOZHIKODE, PIN - 673001 2 COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, NEW DELHI, PIN - 110001 3 THE SERVICE CO-OPERATIVE BANK LTD. NO.F.583, ABDURAHIMAN NAGAR, 7/566, SERVICE CO-OPERATIVE BANK BUILDING, KONDOTTY, TIRURANGADI ROAD, ABDURAHIMAN NAGAR, MALAPPURAM DISTRICT KERALA, PIN – 676305. 4 MALAPPURAM DISTRICT CO-OPERATIVE BANK LTD, HEAD OFFICE OF THE MALAPPURAM DISTRICT CO- OPERATIVE BANK, MALAPPURAM, UPHILL, MALAPPURAM, PIN - 676505 5 NANNAMBRA SERVICE CO-OPERATIVE BANK LIMITED NO.M393, 1 SERVICE CO-OPERATIVE BUILDING, KODINHI POST, KODINHI, MALAPPURAM DISTRICT, KERALA, PIN - 676309 WP(C) NO. 37725 OF 2022 2 BY ADVS. NAVANEETH.N.NATH P.A.MOHAMMED SHAH ESM.KABEER M.SASINDRAN FOR R5 C.R.SYAMKUMAR FOR R3 RENOY VINCENT HELEN P.A. ARUN ROY SHAHIR SHOWKATH ALI ATHUL ROY SUSIE B VARGHESE(K/1300/2019) OTHER PRESENT: SRI.NAVANEETH . N. NATH-SC THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 19.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 37725 OF 2022 3 J U D G M E N T The present writ petition has been filed impugning the garnishee proceedings initiated against the petitioner vide Exts.P45 to P48 orders under Section 226(3) of the Income Tax Act, 1961. 2. Since the petitioner did not pay the assessed tax amount immediately after completion of the assessment orders, garnishee proceedings have been undertaken against him. The petitioner has filed appeals against the assessment orders and has also remitted 20% of the tax assessed. The appeals are still pending for consideration and since the petitioner has complied with the guidelines prescribed in Office Memorandum F.No.404/72/93- ITCC, dated 31.7.2017 by making deposit of 20% of the disputed demand, there is automatic stay of further demand in pursuance to the assessment orders. 3. In view thereof, there is no reason to keep attachment on the property because once the WP(C) NO. 37725 OF 2022 4 petitioner has deposited 20% of the demand, there will be automatic stay of recovery. 4. Sri.Navaneeth N.Nath, learned Standing Counsel appearing for the respondents, submits that the attachment orders are, even otherwise, not surviving, in view of the fact that the attachment orders are valid only for sixty (60) days from the date of the orders and the period of sixty (60) days was over much before. 5. In view thereof, nothing survives in the present writ petition. It is made clear that there is no order of attachment surviving in respect of the properties of the petitioner, including the bank deposits, if any, in pursuance to Exts.P45 to P48 orders. With the aforesaid observations, the present writ petition is disposed of. Pending interlocutory application, if any, in the present writ petition stands dismissed. Sd/- DINESH KUMAR SINGH JUDGE jg WP(C) NO. 37725 OF 2022 5 APPENDIX OF WP(C) 37725/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2011-12 Exhibit P2 TRUE COPY OF THE ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2012-13 Exhibit P3 TRUE COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2013- 14 Exhibit P4 TRUE COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2014- 15 Exhibit P5 TRUE COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2015- 16 Exhibit P6 TRUE COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2016- 17 Exhibit P7 TRUE COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2017- 18 Exhibit P8 TRUE COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2018- 19 Exhibit P9 TRUE COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2019- 20 WP(C) NO. 37725 OF 2022 6 Exhibit P10 TRUE COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2020- 21 Exhibit P11 TRUE COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2021- 22 Exhibit P12 TRUE COPY OF APPEAL FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2011-12 Exhibit P13 TRUE COPY OF APPEAL FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2012-13 Exhibit P14 TRUE COPY OF APPEAL FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2013-14 Exhibit P15 TRUE COPY OF APPEAL FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2014-15 Exhibit P16 TRUE COPY OF APPEAL FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2015-16 Exhibit P17 TRUE COPY OF APPEAL FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2016-17 Exhibit P18 TRUE COPY OF APPEAL FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2017-18 Exhibit P19 TRUE COPY OF APPEAL FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2018-19 Exhibit P20 TRUE COPY OF APPEAL FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2019-20 Exhibit P21 TRUE COPY OF APPEAL FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2020-21 Exhibit P22 TRUE COPY OF APPEAL FILED BEFORE THE 2ND WP(C) NO. 37725 OF 2022 7 RESPONDENT FOR THE ASSESSMENT YEARS 2021-22 Exhibit P23 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2011- 12 Exhibit P24 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2012- 13 Exhibit P25 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2013- 14 Exhibit P26 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2014- 15 Exhibit P27 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2015- 16 Exhibit P28 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2016- 17 Exhibit P29 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2017- 18 Exhibit P30 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2018- 19 Exhibit P31 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2019- 20 Exhibit P32 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2020- WP(C) NO. 37725 OF 2022 8 21 Exhibit P33 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2021- 22 Exhibit P34 TRUE COPY OF PETITION FILED UNDER SEC.220(6) BEFORE THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2011-22 Exhibit P35 TRUE COPY OF PETITION FILED UNDER SEC.220(6) BEFORE THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2012-13 Exhibit P36 TRUE COPY OF PETITION FILED UNDER SEC.220(6) BEFORE THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2013-14 Exhibit P37 TRUE COPY OF PETITION FILED UNDER SEC.220(6) BEFORE THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2014-15. Exhibit P38 TRUE COPY OF PETITION FILED UNDER SEC.220(6) BEFORE THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2015-16. Exhibit P39 TRUE COPY OF PETITION FILED UNDER SEC.220(6) BEFORE THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2016-17. Exhibit P40 TRUE COPY OF PETITION FILED UNDER SEC.220(6) BEFORE THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2017-18 Exhibit P41 TRUE COPY OF PETITION FILED UNDER SEC.220(6) BEFORE THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2018-19 Exhibit P42 TRUE COPY OF PETITION FILED UNDER SEC.220(6) BEFORE THE 1ST RESPONDENT FOR THE ASSESSMENT WP(C) NO. 37725 OF 2022 9 YEARS 2019-20 Exhibit P43 TRUE COPY OF PETITION FILED UNDER SEC.220(6) BEFORE THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2020-21 Exhibit P44 TRUE COPY OF PETITION FILED UNDER SEC.220(6) BEFORE THE 1ST RESPONDENT FOR THE ASSESSMENT YEARS 2021-22 Exhibit P45 TRUE COPY OF GARNISHEE PROCEEDINGS AGAINST THE PETITIONER ISSUED BY THE 1ST RESPONDENT. Exhibit P46 TRUE COPY OF INTIMATION GIVEN TO THE 3RD RESPONDENT FOR THE GARNISHEE PROCEEDINGS AGAINST THE PETITIONER ISSUED BY THE 1ST RESPONDENT Exhibit P47 TRUE COPY OF INTIMATION GIVEN TO THE 4TH RESPONDENT FOR THE GARNISHEE PROCEEDINGS AGAINST THE PETITIONER ISSUED BY THE 1ST RESPONDENT Exhibit P48 TRUE COPY OF INTIMATION GIVEN TO THE 5TH RESPONDENT FOR THE GARNISHEE PROCEEDINGS AGAINST THE PETITIONER ISSUED BY THE 1ST RESPONDENT Exhibit P49 TRUE COPY OF THE ORDER DATED 22.11.2021 ISSUED BY THE 1ST RESPONDENT TO THE 3RD RESPONDENT. Exhibit P50 TRUE COPY OF ORDER DATED 22.11.2021 ISSUED BY THE 1ST RESPONDENT TO THE 4TH RESPONDENT Exhibit P51 TRUE COPY OF ORDER ISSUED BY THE 1ST RESPONDENT TO THE 5TH RESPONDENT DATED 22.11.2021 Exhibit P52 TRUE COPY OF ORDER OF EXTENSION OF PROVISIONAL ATTACHMENT U/S. SEC.281B DATED 18.5.2022 WP(C) NO. 37725 OF 2022 10 ISSUED BY THE 1ST RESPONDENT TO THE 3RD RESPONDENT Exhibit P53 TRUE COPY OF ORDER OF EXTENSION OF PROVISIONAL ATTACHMENT U/S. SEC.281B DATED 18.5.2022 ISSUED BY THE 1ST RESPONDENT TO THE 4TH RESPONDENT Exhibit P54 TRUE COPY OF ORDER OF EXTENSION OF PROVISIONAL ATTACHMENT U/S. SEC.281B DATED 18.5.2022 ISSUED BY THE 1ST RESPONDENT TO THE 5TH RESPONDENT Exhibit P55 TRUE COPY OF LETTER DATED 30.11.2022 ISSUED BY THE 1ST RESPONDENT TO THE 3RD RESPONDENT Exhibit P56 TRUE COPY OF LETTER DATED 30.11.2022 ISSUED BY THE 1ST RESPONDENT TO THE 4TH RESPONDENT Exhibit P57 TRUE COPY OF LETTER DATED 30.11.2022 ISSUED BY THE 1ST RESPONDENT TO THE 5TH RESPONDENT "