VENGANELLUR SERVICE CO-OP BANK LTD. NO.22, V. THE INCOME TAX OFFICER

WP(C)/8113/2021

AI Insights

The case involves Venganellur Service Co-op Bank Ltd., the petitioner, who challenged the recovery proceedings initiated by the Income Tax Officer and the Commissioner of Income Tax (Appeals) following an assessment order and a subsequent rectification order under the Income Tax Act, 1961. The petitioner had filed appeals and stay petitions against these orders, which were still pending. The main legal issue was whether the recovery of the assessed amount should proceed while the stay petitions were pending. The court decided to defer the recovery proceedings until the stay petitions were resolved, emphasizing the need for a timely decision on these petitions to avoid undue hardship to the petitioner.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 691599 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 07-04-2021
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: P K RAVINDRANATHA MENON; JOSE JOSEPH
• Assessee Lawyers: V P NARAYANAN
• Keywords: Assessment Order; Income Tax; Recovery proceedings; Rectification Order; Stay Petition
• Section: 143(3); 154

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.M.BADAR WEDNESDAY, THE 07TH DAY OF APRIL 2021 / 17TH CHAITHRA, 1943 WP(C).No.8113 OF 2021(L) PETITIONER: VENGANELLUR SERVICE CO-OP BANK LTD. NO.22, VENGANELLUR (P.O.), CHELAKKARA, THRISSUR-680 586. BY ADV. SRI.V.P.NARAYANAN RESPONDENTS: 1 THE INCOME TAX OFFICER WARD - 2(5), THRISSUR RANGE-2, AAYAKAR BHAVAN, SAKTHAN NAGAR, THRISSUR-680 001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, SAKTHAN NAGAR, THRISSUR-680 001. R1-2 BY ADV. SRI.P.K.RAVINDRANATHA MENON (SR.) R1-2 BY JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07.04.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.8113/2021 2 JUDGMENT Dated this the 7th day of April 2021 Heard the learned counsel appearing for the petitioner. He submits that the assessment order under Section 143(3) of the Income Tax Act, 1961 (Ext.P1) was passed for the assessment year 2014-2015 on 07.12.2016. Feeling aggrieved by the said assessment order, the petitioner preferred appeal along with stay petition (Exts.P2 and P2(a)) before the 2nd respondent- Commissioner of Income Tax (Appeals). In the meanwhile, rectification order under Section 154 of the Income Tax Act came to be issued vide Ext.P3 and the same has been challenged by the petitioner by filing statutory appeal along with stay petition, Exts.P4 and P4(a) before the concerned respondent. 2. The grievance of the petitioner is to the effect that pending disposal of the stay petitions challenging the assessment order and rectification order, respondents are seeking to recover the amount determined as per the assessment order at Ext.P1. Learned counsel for the petitioner therefore prays for stay of recovery till disposal of the statutory appeals. 3. Learned Standing Counsel appearing for respondents submits that the recovery of the amount determined under the W.P.(C) No.8113/2021 3 assessment order cannot be stayed till disposal of the appeals but the recovery proceedings may be deferred till disposal of the stay petitions and the concerned authority be directed to dispose of the stay petitions either in two or three months. 4. In this view of the matter, as the statutory appeals along with stay petitions are pending before the appellate authority, this writ petition is disposed of with the following directions: The respondents shall decide the stay petitions at Exts.P2(a) and P4(a) in appeals challenging the assessment order and rectification order within a period of three months from the date of communication of this judgment by the petitioner. Till disposal of the stay petitions, respondents are directed to defer the recovery proceedings commenced pursuant to the assessment order at Ext.P1. The petitioner to supply copy of this judgment to the concerned respondent for compliance. Sd/- A.M.BADAR JUDGE smp W.P.(C) No.8113/2021 4 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF ASSESSMENT ORDER DATED 7.12.2016 PASSED BY THE 1ST RESPONDENT ALONG WITH DEMAND NOTICE AND COMPUTATION OF INCOME. EXHIBIT P2 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 3.1.2017 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2014-15. EXHIBIT P2(a) TRUE COPY OF THE PETITION FOR STAY DATED 3.1.2017 FILED BY THE PETITIONER FOR AY- 2014-15 BEFORE THE 2ND RESPONDENT. EXHIBIT P3 TRUE COPY OF THE RECTIFICATION ORDER DATED 30.1.2020 PASSED BY THE 1ST RESPONDENT ALONG WITH DEMAND NOTICE AND COMPUTATION OF INCOME. EXHIBIT P4 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 19.10.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2014-15. EXHIBIT P4(a) TRUE COPY OF THE PETITION FOR STAY DATED 19.10.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P5 TRUE COPY OF THE JUDGMENT DATED 1.7.2019 IN W.A.NO.1536 OF 2019 OF THIS HON'BLE COURT. RESPONDENTS' EXHIBITS: NIL. True Copy P.S to Judge smp "