Wp(C)/11776/2016 Of Muhamma Service Co-Operative Bank Limited v. The Income Tax Officer

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR MONDAY, THE 28TH DAY OF MARCH 2016/8TH CHAITHRA, 1938 WP(C).No. 11776 of 2016 (V) --------------------------- PETITIONER(S):------------- MUHAMMA SERVICE CO-OPERATIVE BANK LIMITED, NO.1670, MUHAMMA P.O., REP. BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SRI.JACOB CHACKO SRI.MATHEWS JOSEPH RESPONDENT(S): -------------- 1. THE INCOME TAX OFFICER, WARD NO.2, DEVASWAM BUILDING, ALAPPUZHA, PIN-688 011. 2. THE COMMISSIONER OF INCOME TAX (APPEALS), OFFICE OF THE COMMISSIONER OF INCOME TAX (APPEALS), 1ST FLOOR, KOTTAYAM PUBLIC LIBRARY BUILDING, SASTHRI ROAD, KOTTAYAM-686 001. OFFICE OF THE COMMISSIONER OF INCOME TAX (APPEALS), 1ST FLOOR, KOTTAYAM PUBLIC LIBRARY BUILDING, SASTHRI ROAD, KOTTAYAM-686 001. 3. BRANCH MANAGER, THE ALAPPUZHA DISTRICT CO-OPERATIVE BANK LTD., MUHAMMA PO, ALAPPUZHA DISTRICT. MUHAMMA PO, ALAPPUZHA DISTRICT. R1 & R2 BY SRI.JOSE JOSEPH, SC, FOR INCOME TAXSRI.TOJAN J.VATHIKULAM R3 BY ADV. SMT.K.N.RAJANI, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28-03-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX PETITIONER(S)' EXHIBITS-----------------------P1 : TRUE COPY OF THE ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER DATED 5.2.2016.P2 : TRUE COPY OF THE APPEAL FILED BY THE PETITIONER DATED 29.2.2016 BEFORE THE 2ND RESPONDENT. P3 : TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER DATED 29.2.2016 BEFORE THE 2ND RESPONDENT.P4 : TRUE COPY OF THE LETTER OF DIRECTION ISSUED BY THE 1ST RESPONDENT TO THE 3RD RESPONDENT DATED 23.3.2016.P5 : TRUE COPY OF THE LETTER ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER DATED 23.3.2016. RESPONDENT(S)' EXHIBITS ----------------------- NIL //TRUE COPY// P.S.TO JUDGE A.K.JAYASANKARAN NAMBIAR, J. - - - - - - - - - - - - - - - - - - - - - - - - - - W.P.(C) No. 11776 of 2016 - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 28[th] day of March 2016 JUDGMENT Against Ext.P1 Assessment order under the Income Tax Act,the petitioner preferred Ext.P2 appeal and Ext.P3 stay petitionbefore the 2[nd] respondent. It is stated that even before consideringthe stay petition, the respondents have taken steps to freeze thebank account of the petitioner maintained with the 3[rd] respondentby issuing Ext.P4 direction to the 3[rd] respondent. 2. I have heard the learned counsel for the petitioner, the learnedstanding counsel for the Income Tax Department and the learnedstanding counsel for the respondent bank.. 3. On a consideration of the facts and circumstances of thecase as also the submissions made across the Bar, I dispose thewrit petition with the following directions: i) The 2[nd] respondent shall consider and passorders on Ext.P3 stay petition within a period oftwo months from the date of receipt of a copyof this judgment, after hearing the petitioner. sm/ ii) Recovery steps for recovery of amountsconfirmed against petitioner by Ext.P1 assessmentorder, including further steps pursuant to Ext.P4letter, shall be kept in abeyance till orders arepassed by the 2[nd] respondent as directed aboveand communicated to the petitioner. iii) It is made clear that during the pendency ofthe stay petition granted by this Court, thepetitioner would be permitted to operate the bankaccount maintained with the 3[rd] respondent,which is covered by Ext.P4 letter of the 1[st]respondent. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE