The Kerala High Court has ordered an immediate halt to coercive recovery measures by the income tax authorities against the Pallickal Naduvilemuri Service Co-operative Bank Ltd.
The ruling comes as a relief to the petitioner bank, situated in the Alappuzha district of Kerala, which had challenged the assessment and demand notices issued by income tax authorities.
The petitioner, Pallickal Naduvilemuri Service Co-operative Bank Ltd., represented by C.A. Jojo contested the assessment order and demand notice issued by the Income Tax Officer and Income Tax Officer – National Faceless Assessment Centre ( NFAC ), respectively., The petitioner argued for a fair and expeditious resolution of the matter.
The petitioner sought prompt and merit-based disposal of their appeal by the Income Tax Commissioner (Appeals), urging the court to prevent coercive measures until the appeal resolution.
The respondent revenue, including the Income Tax Officer, Income Tax Officer -NFAC and Income Tax Commissioner (Appeals), did not contest the petitioner’s request for prompt appeal resolution. They consented to the petitioner’s plea, indicating no objection to the court’s directive for the Income Tax Commissioner (Appeals) to adjudicate the appeal expeditiously.
The single bench of Justice Johnson John highlighted the importance of timely legal recourse and fair adjudication. The bench directed the Income Tax Commissioner (Appeals) to adjudicate the appeal on its merits and in accordance with the law. Moreover, the court set a strict timeline for the resolution, ordering the appeal disposal within two months from the date of receipt of the judgment.
Until the Income Tax Commissioner (Appeals) decides on the appeal, the High Court ordered a stay on any coercive actions initiated against the petitioner Bank pursuant to the assessment order and demand notice. This stay ensures that the bank is shielded from undue financial hardship during the pendency of the appeal process, providing much-needed relief to the institution and its stakeholders.
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