M/S. CHAVAKKAD SERVICE CO-OPERATIVE BANK V. INCOME TAX OFFICER

WP(C)/25786/2016

AI Insights

The case involves M/S. Chavakkad Service Co-operative Bank Ltd., the petitioner, challenging the orders Exts.P7 and P8 issued by the Income Tax Officer, which conditionally granted a stay on the appeals filed against the assessment orders for the years 2008-09 and 2013-14. The petitioner argued that the legal issue concerning the deduction of interest received from other sources under Section 80P(2)(a)(i) of the Income Tax Act had been previously decided in their favor by the Income Tax Appellate Tribunal, Cochin Bench. However, the court noted that there were conflicting views among different tribunals on the same issue, and it was pending consideration by the High Court. Consequently, the court did not interfere with the stay orders but granted the petitioner additional time to remit the specified amounts and requested an expedited hearing of the pending appeals.

• Counselvise Citation: [2016] 140 COUNSELVISE.COM (IT) 755519 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 08-08-2016
• Assessment Year: misc
• Other Referred Cases: Kizhathadiyoor Service Co-operative Bank Ltd., Poonjar Service Co-operative Bank Ltd.
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: ANIL NAIR; R SREEJITH KUM PRAKASH; MEKHALA BENNY
• Keywords: Appeal; Assessment Order; Co-operative Bank; Income Tax; Stay Petition
• Section: 80P(2)(a)(i)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE MONDAY, THE 8TH DAY OF AUGUST 2016/17TH SRAVANA, 1938 WP(C).No. 25786 of 2016 (W) ---------------------------- PETITIONER(S): ------------- M/S. CHAVAKKAD SERVICE CO-OPERATIVE BANK LTD. BEACH ROAD, P.O.CHAVAKKAD, THRISSUR-680 506, REPRESENTED BY SECRETARY. BY ADVS.SRI.ANIL D. NAIR SRI.R.SREEJITH KUM.SOUMYA PRAKASH KUM.MEKHALA M.BENNY RESPONDENT(S): -------------- 1. INCOME TAX OFFICER WARD-1, GURUVAYUR. 2. THE COMMISSIONER OF INCOME TAX (APPEALS) THRISSUR-680 001. BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08-08-2016,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: bp WP(C).No. 25786 of 2016 (W) ---------------------------- APPENDIX PETITIONER(S)' EXHIBITS ----------------------- EXHIBIT P1: COPY OF THE ASSESSMENT ORDER DATED 22.2.2016 FOR THE YEAR 2008-09 ISSUED TO THE PETITIONER BY THE FIRST RESPONDENT. EXHIBIT P2: COPY OF THE ASSESSMENT ORDER DATED 17.3.2016 FOR THE YEAR 2013-14 ISSUED TO THE PETITIONER BY THE FIRST RESPONDENT. EXHIBIT P3: COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2008-09. EXHIBIT P4: COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2013-14. EXHIBIT P5: COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE YEAR 2008-09. EXHIBIT P6: COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE YEAR 2013-14. EXHIBIT P7: COPY OF THE ORDER DATED 8.7.2016 FOR THE YEAR 2008-09 ISSUED TO THE PETITIONER BY THE FIRST RESPONDENT. EXHIBIT P8: COPY OF THE ORDER DATED 8.7.2016 FOR THE YEAR 2013-14 ISSUED TO THE PETITIONER BY THE FIRST RESPONDENT. EXHIBIT P9: COPY OF THE ORDER DATED 20.7.2016 IN ITA NO.525/COCH/2014 OF THE INCOME TAX APPELLATE TRIBUNAL. RESPONDENT(S)' EXHIBITS : NIL. //TRUE COPY// P.A. TO JUDGE bp A.M. SHAFFIQUE, J. -------------------------------------- W.P.(C)No.25786 of 2016 ------------------------------------------------- Dated this, the 8th day of August, 2016 J U D G M E N T The petitioner challenges Exts.P7 and P8 orders by which stay has been granted on condition of the petitioner remitting 15% of the tax dues. The orders had been passed when the petitioner preferred appeals against Exts.P1 and P2 orders. 2. The main contention urged by the petitioner is that the legal issue has already been decided in favour of the petitioner as per the order passed by the appellate Tribunal, Cochin Bench in ITA No.525/2014 and therefore, there was no reason why the petitioner should be called upon to remit any amount as the issue has already been decided by the Tribunal. Alternatively, the petitioner also seeks for early disposal of Exts.P3 and P4 appeals. 3. It is inter alia contended that the entire interest received by the petitioner Society from other sources has to be deducted under Section 80P(2)(a)(i) of the Income Tax Act and it has been held so by the Tribunal in the case of Kizhathadiyoor Service Co-operative Bank Ltd. 4. On the other hand the learned Standing Counsel appearing for the Revenue would submit that the issue is pending consideration before this Court in an appeal filed by the assessee in ITA No.66/2016, the matter relating to Poonjar Service Co-operative Bank Ltd. It is submitted that different Tribunals had taken different W.P.(C)No.25786 of 2016 2 views and therefore, the issue is yet to be decided by this Court. 5. Taking into consideration the fact that there are contrary views taken by the Tribunal with reference to the very same issue, I don't think that the officer committed any error in issuing Exts.P7 and P8 and hence I don't intend to interfere with the same. 6. Learned counsel for the petitioner however seeks further time to remit the amount as stated in Exts.P7 and P8 and for an early hearing of the appeals. 7. Taking into consideration the aforesaid request, this writ petition is disposed of as under : 1. The petitioner shall remit the amounts specified in Exts.P7 and P8 within a period of three weeks from the date of receipt of a copy of this judgment. 2. The 2nd respondent shall endeavor to hear and dispose of the appeals Exts.P3 and P4 as expeditiously as possible. Sd/- A.M. SHAFFIQUE, JUDGE AV "