Ker HC | Statutory appeals filed by banks shall be considered and disposed of prior to assessment notices issued by Commissioner of Income Tax

Kerala High Court: N. Nagaresh, J. disposed of the writ petition seeking to consider and dispose of appeals by the appellant prior to coercive action by the Income Tax authorities.

In the present case, the petitioner-Bank, being a Service Co-operative Bank registered under the Kerala Co-operative Societies Act, 1969 were issued with income tax assessment orders for the years 2009-2010, 2010-11, 2016-17 and 2015-16. The petitioner bank had filed an appeal being aggrieved by the assessment orders. During the pendency of the appeals, the Income-tax Officer had issued notices under Section 221(1) of the Income Tax Act, 1961 seeking recovery of the amount.

Sri O.D. Sivadas counsel representing the petitioner-Bank, by placing reliance on the judgments passed by the present High Court, submitted that the appellate authority should consider the appeals preferred by the Banks on a priority basis and until the final disposition of the case, any coercive action shall be avoided. The counsel relied on Mavilayi Service Co-operative bank Ltd. v. Income Tax Officer, 2013 SCC OnLine Ker 838 wherein it directed that the Commissioner of Income Tax (Appeals) consider and dispose of statutory appeals filed by the appellant therein at the earliest.

High Court upon hearing the pleadings of the petitioner decided on disposing of the present case in a similar manner. Hence, the court directed that the further steps of coercive action shall not be resorted to against the petitioner.[Annamanada Service Co-operative Bank Ltd. v CIT, 2019 SCC OnLine Ker 3011 , decided on 17-09-2019]

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