Wp(C)/33349/2019 Of The Vamanapuram Service Co-Operative Bank Ltd v. The Income Tax Officer

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, 1941WP(C).No.33349 OF 2019(P) PETITIONER/S: THE VAMANAPURAM SERVICE CO-OPERATIVE BANK LTD.NO.927REPRESENTED BY ITS SECRETARY, VAMANAPURAM P. O., THIRUVANANTHAPURAM DISTRICT - 695 606. BY ADVS.SRI.ARJUN RAGHAVANSRI.ADITHYA RAJEEV RESPONDENT/S: 1THE INCOME TAX OFFICERWARD -2(3), OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX, RANGE - 2, 1ST FLOOR, AYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM DISTRICT - 695 003.WARD -2(3), OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX, RANGE - 2, 1ST FLOOR, AYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM DISTRICT - 695 003. 2THE COMMISSIONER OF INCOME TAX (APPEALS)AYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAMISTRICT - 695 003.AYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAMISTRICT - 695 003. 3THE THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK LTD.REPRESENTED BY ITS GENERAL MANAGER, HEAD OFFICE, EASTFORT, THIRUVANANTHAPURAM - 695 023.CO-OPERATIVE BANK LTD.REPRESENTED BY ITS GENERAL MANAGER, HEAD OFFICE, EASTFORT, 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 ON06.12.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: JUDGMENT Against Exts.P1 and P2 penalty orders under the Income Tax Act, thepetitioner has preferred Exts.P7 and P9 appeals together with Exts.P8 and P10stay petitions before the 2[nd] respondent appellate authority. It is the case of thepetitioner that even prior to considering the stay petition, recovery steps are takenby the respondents against the petitioner for recovery of the amounts confirmedby Exts.P1 and P2 penalty orders. 2. I have heard the learned counsel appearing for the petitioner and also thelearned Government Pleader appearing for the respondents. On a consideration of the facts and circumstances of the case as also thesubmissions made across the Bar, I dispose the writ petition with the followingdirections: 1. The 2[nd] respondent shall consider and pass reasonedorders on Exts.P8 and P10 stay petitions within a period oftwo months from the date of receipt of a copy of thisjudgment, after hearing the petitioner. 2. Recovery steps for recovery of amounts confirmed againstthe petitioner by Exts.P1 and P2 assessment orders includingfurther proceedings pursuant to Exts.P11 and P12 garnisheenotices shall be kept in abeyance till such time as orders arepassed by the 2[nd] respondent as directed above andcommunicated to the petitioner. It is made clear that duringthe period when the stay granted by this Court is in sd operation, the petitioner is permitted to operate its bankaccount covered by Exts.P11 and P12. 3. The petitioner shall produce a copy of the writ petitiontogether with a copy of this judgment, before the 2[nd]respondent, for further action. Sd/- A.K.JAYASANKARAN NAMBIARJUDGE APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1A 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.ISSUED BY THE 1ST RESPONDENT UNDER SECTION 271 B IMPOSING PENALTY FOR THE ASSESSMENT YEAR 2011 - 2012. EXHIBIT P2A 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.ISSUED BY THE 1ST RESPONDENT UNDER SECTION 271 B IMPOSING PENALTY FOR THE ASSESSMENT YEAR 2015 - 2016. EXHIBIT P3A TRUE COPY OF THE COMMUNICATION DATED 8.11.2019, ISSUED BY THE 2ND RESPONDENT, FOR THE ASSESSMENT YEAR 2011 - 2012.8.11.2019, ISSUED BY THE 2ND RESPONDENT, FOR THE ASSESSMENT YEAR 2011 - 2012. EXHIBIT P4A TRUE COPY OF THE COMMUNICATION DATED 8.11.2019, ISSUED BY THE 2ND RESPONDENT, FOR THE ASSESSMENT YEAR 2015 - 2016.8.11.2019, ISSUED BY THE 2ND RESPONDENT, FOR THE ASSESSMENT YEAR 2015 - 2016. EXHIBIT P2A 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.ISSUED BY THE 1ST RESPONDENT UNDER SECTION 271 B IMPOSING PENALTY FOR THE ASSESSMENT YEAR 2015 - 2016. EXHIBIT P3A TRUE COPY OF THE COMMUNICATION DATED 8.11.2019, ISSUED BY THE 2ND RESPONDENT, FOR THE ASSESSMENT YEAR 2011 - 2012.8.11.2019, ISSUED BY THE 2ND RESPONDENT, FOR THE ASSESSMENT YEAR 2011 - 2012. EXHIBIT P4A TRUE COPY OF THE COMMUNICATION DATED 8.11.2019, ISSUED BY THE 2ND RESPONDENT, FOR THE ASSESSMENT YEAR 2015 - 2016.8.11.2019, ISSUED BY THE 2ND RESPONDENT, FOR THE ASSESSMENT YEAR 2015 - 2016. EXHIBIT P5A TRUE COPY OF THE COMMUNICATION DATED 13.11.2019, ISSUED BY THE 2ND RESPONDENT, FOR THE ASSESSMENT YEAR 2011 - 2012.13.11.2019, ISSUED BY THE 2ND RESPONDENT, FOR THE ASSESSMENT YEAR 2011 - 2012. EXHIBIT P6A TRUE COPY OF THE COMMUNICATION DATED 13.11.2019, ISSUED BY THE 2ND RESPONDENT, FOR THE ASSESSMENT YEAR 2015 - 2016.13.11.2019, ISSUED BY THE 2ND RESPONDENT, FOR THE ASSESSMENT YEAR 2015 - 2016. EXHIBIT P7A TRUE COPY OF THE ONLINE APPEAL ALONG WITHGROUNDS OF APPEAL AND COVERING LETTER DATED18.11.2019, FOR THE ASSESSMENT YEAR 2011 - 2012.GROUNDS OF APPEAL AND COVERING LETTER DATED18.11.2019, FOR THE ASSESSMENT YEAR 2011 - 2012. EXHIBIT P8A TRUE COPY OF THE STAY PETITION FILED ALONG WITH EXT.P7 APPEAL DATED 4.12.2019.ALONG WITH EXT.P7 APPEAL DATED 4.12.2019. EXHIBIT P9A TRUE COPY OF THE ONLINE APPEAL ALONG WITHGROUNDS OF APPEAL AND COVERING LETTER DATED18.11.2019, FOR THE ASSESSMENT YEAR 2015 - 2016.GROUNDS OF APPEAL AND COVERING LETTER DATED18.11.2019, FOR THE ASSESSMENT YEAR 2015 - 2016. EXHIBIT P10A TRUE COPY OF THE STAY PETITION FILED ALONG WITH EXT. P9 APPEAL DATED 4.12.2019.ALONG WITH EXT. P9 APPEAL DATED 4.12.2019. EXHIBIT P11A TRUE COPY OF THE GARNISHEE NOTICE DATED 18.11.2019 ISSUED BY THE 1ST RESPONDENT TO THE 3RD RESPONDENT.18.11.2019 ISSUED BY THE 1ST RESPONDENT TO THE 3RD RESPONDENT. EXHIBIT P12A TRUE COPY OF THE GARNISHEE NOTICE DATED 19.11.2019 ISSUED BY THE 1ST RESPONDENT TO THE 3RD RESPONDENT.19.11.2019 ISSUED BY THE 1ST RESPONDENT TO THE 3RD RESPONDENT.