AZHIKODE SERVICE CO-OPERATIVE BANK LTD.NO.R 287 V. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/19161/2021

AI Insights

Azhikode Service Co-operative Bank Ltd., the petitioner, challenged an assessment order under Section 143(3) of the Income Tax Act, which disallowed their claim under Section 80P(2) and demanded a significant tax amount. The bank had filed an appeal (Ext.P2) against this order, which was pending before the Commissioner of Income Tax (Appeals). Fearing coercive recovery actions based on the assessment order, the bank sought a writ from the High Court to expedite the appeal process. The court, referencing a similar case (Ext.P3), directed the Appellate Authority to resolve the appeal within six months without requiring any deposit of the assessed tax.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 766615 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 16-09-2021
• Assessment Year: misc
• Other Referred Cases: WPC No.18004 of 2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: O D SIVADAS
• Keywords: Appeal; Assessment; Co-operative Society; Income Tax; Section 80P
• Section: 143(3); 80P(2); 80P(4)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS THURSDAY, THE 16TH DAY OF SEPTEMBER 2021 / 25TH BHADRA, 1943 WP(C) NO. 19161 OF 2021 PETITIONER: AZHIKODE SERVICE CO-OPERATIVE BANK LTD.NO.R 287 KODUNGALLUR, THRISSUR DISTRICT, 680 666, REPRESENTED BY ITS SECRETARY. BY ADV O.D.SIVADAS RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, SHAKTAN NAGAR, THRISSUR, PIN-680 001. 2 THE INCOME TAX OFFICER WARD 2(1), SHAKTAN NAGAR, THRISSUR, PIN-680 001. SRI.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16.09.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.19161/21 -:2:- BECHU KURIAN THOMAS, J. ------------------------------------ W.P.(C) No. 19161 of 2021 -------------------------------------- Dated this the 16th day of September, 2021 JUDGMENT Petitioner is a co-operative society, which claimed the benefit under Section 80P(4) of the Income Tax Act. By the order dated 17.12.2019, the assessing officer completed the assessment under Section 143(3) of the Income Tax Act and disallowed the claim under Section 80P(2) of the Act. A demand for a huge amount has already been made against the petitioner. 2. Challenging the order of assessment, petitioner has preferred Ext.P2 appeal before the first respondent. It is submitted that the appeal is pending consideration. However, apprehending coercive steps that may be initiated, pursuant to Ext.P1 assessment order, petitioner seeks for a direction for an early disposal of Ext.P2 appeal. 3. I have heard the learned counsel for the petitioner Adv.O.D.Sivadas as well as the learned Standing Counsel for the respondents Sri.Jose Joseph. 4. The learned counsel for the petitioner pointed out that there are connected matters in which this Court has already issued directions to the Appellate Authority to dispose of appeals in cases where the deduction W.P.(C) No.19161/21 -:3:- under Section 80P of the Act have been sought without insisting on any deposit. Ext.P3 is one such judgment where this Court directed the appeal to be disposed of without insisting on payment of any percentage of the amount already assessed. 5. Having regard to the circumstances arising in the case, I am of the view that Ext.P2 appeal filed by the petitioner before the first respondent can be directed to be disposed of in accordance with law. 6. Accordingly, there will be a direction to the Appellate Authority concerned to consider and dispose of Ext.P2 appeal, after affording an opportunity of hearing to the petitioner within an outer period of six months from the date of receipt of a copy of this judgment. It is clarified that the appeal shall be disposed of by the first respondent without insisting on payment of 20% of the tax demanded. Needless to say, till a decision is taken by the first respondent on the appeal, all recovery proceedings pursuant to assessment order shall be kept in abeyance. The writ petition is allowed as above. Sd/- BECHU KURIAN THOMAS JUDGE vps W.P.(C) No.19161/21 -:4:- APPENDIX OF WP(C) 19161/2021 PETITIONER'S/S' EXHIBITS EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 17.12.2019 ISSUED BY THE 2ND RESPONDENT FOR THE ASSESSMENT PERIOD 2017-18. EXHIBIT P2 COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE IST RESPONDENT FOR THE PERIOD 2017-18 DATED 10.1.2020. EXHIBIT P3 TRUE COPY OF THE JUDGMENT DATED 6.9.2021 IN WPC NO.18004 OF 2021 RENDERED BY THIS HON'BLE COURT. "