THE ALOOR SERVICE CO OPERATIVE BANK LTD.693, V. THE INCOME TAX OFFICER

WA/900/2020

AI Insights

The case involves the Aloor Service Cooperative Bank Ltd., the appellant, who contested the procedures and actions taken by the Income Tax Department regarding tax recoveries for the assessment years 2012-13, 2016-17, and 2017-18. The appellant initially sought judicial intervention to challenge the recovery procedures and sought a refund of amounts collected. The High Court of Kerala had earlier directed a partial refund to the appellant. Subsequently, the Income Tax Appellate Tribunal ruled in favor of the appellant, leading to the current appeal's resolution, where the court directed the refund of the entire amount collected as tax dues.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 683039 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 18-10-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: P K MENON; JOSE JOSEPH
• Assessee Lawyers: P C SASIDHARAN
• Keywords: Income Tax; Tax Recovery; Writ of Certiorari; Writ of Mandamus; Arbitrary Tax Collection
• Section: 80P; 236(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR.JUSTICE BASANT BALAJI TUESDAY, THE 18TH DAY OF OCTOBER 2022 / 26TH ASWINA, 1944 WA NO. 900 OF 2020 AGAINST THE JUDGMENT IN WP(C) 8822/2020 OF HIGH COURT OF KERALA APPELLANT: THE ALOOR SERVICE CO OPERATIVE BANK LTD.693, SAHAKARANA MANDIRAM, MALA VIA, ALOOR, THRISSUR-680 683, REPRESENTED BY ITS SECRETARY BY ADV P.C.SASIDHARAN RESPONDENTS: 1 THE INCOME TAX OFFICER WARD 2 (4),THRISSUR, OFFICE OF THE INCOME TAX OFFICER, SHAK- THANTHAMPURAN NAGAR, THRISSUR-680 001 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, S.T. NAGAR, THRISSUR-680 001 3 THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, ERNKAULAM BY ADVS. SRI.P.K.RAVINDRANATHA MENON (SR.) SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 18.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WA NO. 900 OF 2020 -2- JUDGMENT The writ petitioner is the appellant. The appellant filed the writ petition for the following prayers: (i) To issue a writ of certiorari, or other appropriate writ, order, or direction to quash Exhibit P11 to P14. (ii) To declare that the procedure adopted by the Recovery Officer to recover the tax is highly arbitrary, illegal and violative of the statutory mandate contained in Section 236(3) of the Income Tax Act. (iii) Issue a writ of mandamus or other appropriate writ order or direction directing the respondents to return the amounts collected through Exts.P7 to P10. (iv) To declare that the encashment of the amounts towards tax collection is highly arbitrary and illegal (v) to issue such other writ, order or direction as this Honourable Court may deem fit and proper in the case. 2. The subject matter of the writ petition relates to the disputes between the appellant and the respondents herein concerning the income tax returns filed by the appellant for the assessment years 2012-13, 2016-17 and 2017-18. The appellant filed tax appeal before the Income Tax Appellate Tribunal aggrieved by the order of assessment and appellate order of the Commissioner of WA NO. 900 OF 2020 -3- Income Tax (Appeals), Thrissur. The appellant filed W.P(C) No.8822 of 2020 before this Court and the learned Single Judge directed to refund 70% of the amounts recovered to the Society and retain 30% with the Department. 3. During the pendency of the appeal, it is stated by the learned counsel Mr. P.C Sasidharan appearing for the appellant that the appeal filed by the appellant before the Tribunal is allowed in favour of the appellant/assessee and the deduction available under Section 80P of the Income Tax Act has been extended. 4. The cause in the appeal does not survive in view of the final adjudication of the tax appeal filed by the appellant before the Tribunal. Therefore, the amount recovered/ received as tax dues by the Department is refunded to the appellant/assessee, since the claim of the assessee is accepted by the Tribunal. 5. We place on record the subsequent developments taking place in the matter and dispose of the appeal by directing the jurisdictional Assessing Officer/respondents, to refund the amount recovered/received as tax dues from the appellant. The appellant is WA NO. 900 OF 2020 -4- given liberty to represent for refund of the tax amount by enclosing a copy of the judgment and orders are passed in accordance with law on refund and eligible interest in this behalf. Writ Appeal is disposed of as indicated above. S.V.BHATTI JUDGE BASANT BALAJI JUDGE JS WA NO. 900 OF 2020 -5- APPENDIX OF WA 900/2020 APPELLANT’S ANNEXURES ANNEXURE-A1 TRUE COPY OF THE JUDGMENT IN W.A.NO.2488 OF 2019 DATED 20.01.2020 WA NO. 900 OF 2020 -6- APPENDIX OF WA 720/2020 PETITIONER ANNEXURES Annexure A1 TRUE COPY OF THE ORDER OF THE INCOME TAX APPELLATE TRIBUNAL DATED 06.10.2020 ANNEXURE A2: True copy of the statement. RESPONDENT ANNEXURES ANNEXURE A: True copy of the Panchnama prepared on 13.3.2020. ANNEXURE B: True copy of the minutes of the meeting Held on 16.03.2020. PETITIONER ANNEXURES ANNEXURE A1: True copy of the communication dated 21/07/2020. "