2019 (8) TMI 185 - HC - Income Tax

Notice u/s 221(1) seeking recovery of the amount of assessment - HELD THAT - In identical issue in THE THACHAMPARA SERVICE CO-OPERATIVE BANK LTD. 2019 (5) TMI 1662 - KERALA HIGH COURT this Court has passed orders directing the appellate authority to consider the appeals preferred by the Society first and not to take any coercive steps till the finalisation of the appeal. In judgment in 2019 (7) TMI 374 - KERALA HIGH COURT an identical case, a Division Bench of this Court directed the Commissioner of Income Tax (Appeals) to consider and dispose of statutory appeals filed by the appellant therein at the earliest taking note of the Full Bench decision in The Mavilayi Service Co-operative bank Ltd. v. The Commissioner of Income Tax, Calicut 2019 (3) TMI 1580 - KERALA HIGH COURT These writ petitions are disposed of directing the 1st respondent - Appellate Authority to consider and pass appropriate orders on Ext.P2 appeals, as expeditiously as possible and it is further directed that further steps of coercive nature shall not be resorted to against the petitioner - Society till the appeals are disposed of.

Summary

Issues:
1. Challenge to income tax assessment orders for the years 2012-13, 2013-14, and 2015-16.
2. Issuance of recovery notices under Section 221(1) of the Income Tax Act, 1961.
3. Petitioner's appeal against assessment orders.
4. Judicial precedent directing consideration of appeals before coercive steps.

Analysis:
1. The petitioner, a Co-operative Society under the Kerala Co-operative Societies Act, challenged income tax assessment orders for the years 2012-13, 2013-14, and 2015-16. The petitioner filed appeals against these orders, and pending the appeals, the Income Tax Officer issued recovery notices under Section 221(1) of the Income Tax Act, 1961 seeking recovery of the assessed amount.

2. The counsel for the petitioner highlighted a previous case where the court directed the appellate authority to consider appeals before taking coercive steps. Referring to judicial precedents, the court emphasized the importance of considering and disposing of statutory appeals promptly. Notably, the court cited a Full Bench decision in a similar case, emphasizing the need for expeditious resolution of appeals.

3. During the hearing, both the petitioner's counsel and the Standing Counsel for the Department of Income Tax presented their arguments. After reviewing the submissions, the court found merit in disposing of the writ petitions in a similar manner as the previous case. Consequently, the court directed the 1st respondent - Appellate Authority to consider and decide on the appeals promptly. The court also ordered that no coercive measures should be taken against the petitioner until the appeals are resolved.

In conclusion, the judgment addressed the challenges to income tax assessment orders, highlighted the importance of considering appeals before coercive actions, and directed the speedy resolution of the petitioner's appeals while ensuring protection from coercive measures during the appeal process.