EDARIKODE SERVICE CO OPERATIVE BANK LIMITED V. THE INCOME TAX OFFICER

WP(C)/4106/2020

AI Insights

The case involves Edarikode Service Cooperative Bank Limited, which challenged the demand notices issued by the Income Tax Officer following the appellate orders that upheld the original assessment orders for the assessment years 2008-09 and 2013-14. The bank had filed appeals against these assessments and subsequent rectification petitions due to alleged errors in the appellate orders. The primary legal contention was whether the demand notices should be stayed during the pendency of the rectification petitions. The court did not delve into the merits of the tax assessments but focused on the procedural aspect of handling the rectification petitions expeditiously.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 695564 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 13-02-2020
• Assessment Year: misc
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: C A JOJO; SWATHY S
• Keywords: Assessment Order; Demand notice; Income Tax; Rectification petition; Stay of demand

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL THURSDAY, THE 13TH DAY OF FEBRUARY 2020 / 24TH MAGHA, 1941 WP(C).No.4106 OF 2020(K) PETITIONER: EDARIKODE SERVICE CO OPERATIVE BANK LIMITED NO.F 10739,EDARIKODE.P.O, MALAPPURAM DISTRICT, PIN-676501,REPRESENTED BY ITS SECRETARY-IN-CHARGE. BY ADVS. SRI.C.A.JOJO SMT.SWATHY S. RESPONDENTS: 1 THE INCOME TAX OFFICER WARD-3,TIRUR TOWN HALL ROAD,TIRUR-676101. 2 THE COMMISSIONER OF INCOME TAX(APPEALS), OFFICE OF THE COMMISSIONER OF INCOME TAX(APPEALS),AAYAKAR BHAVAN MANANCHIRA, KOZHIKODE-673001. SRI CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.4106 OF 2020(K) 2 JUDGMENT The petitioner has approached this Court, seeking ventilation of the grievance on the premise that against the assessment order dated 22.02.2016 for the assessment year 2013-2014 had preferred two appeals Exts.P5 and P6. Prior to the preference of the appeal, demand notice of Rs.1,25,86,090/- dated 22.02.2016 was issued by the 1st respondent. The appeals have been decided on 12.12.2019 order thereof received on 03.02.2020. Since there was an error apparent on record the petitioner have preferred two rectification petitions Exts.P9 and P10 on 08.02.2020. However, on 07.02.2020 received two notices Exts.P11 and P12 for aforementioned assessment years demanding tax as per the order of the first Appellate Court, which upheld the order of the Assessing Officer. Learned counsel submitted that there will not be any aversion in arguing pending appeal as early as possible, but the demand during interregnum raised should be stayed. The learned counsel for the Income Tax Department submits that the rectification have been filed after receipt of demand notice and therefore no such interference is warranted. WP(C).No.4106 OF 2020(K) 3 Having heard learned counsel for the parties, I am of the view that the writ petition can be disposed of without expressing any opinion on the merits by issuing directions to the 2nd respondent to decide the rectification petitions Exts.P9 and P10 for the assessment year 2008-09 and 2013-14 as expeditiously as possible within a period of two months from the date of receipt of a certified copy of this judgment. Till such time the demand raised by Exts.P11 and P12 are ordered to be stayed subject to furnishing the bank guarantee of entire amount reflected in impugned notices Exts.P11 and P12. Sd/- AMIT RAWAL nak JUDGE WP(C).No.4106 OF 2020(K) 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR AY 2008-09 DATED 22.02.2016 ISSUED BY THE FIRST RESPONDENT EXHIBIT P2 A TRUE COPY OF THE DEMAND NOTICE FOR RS.40,87,590/- DATED 22.02.2016 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 A TRUE COPY OF THE ASSESSMENT ORDER FOR AY 2013-14 DATED 22.02.2016 ISSUED BY THE FIRST RESPONDENT EXHIBIT P4 A TRUE COPY OF THE DEMAND NOTICE FOR RS,1,25,86,090/- DATED 22.02.2016 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P5 A TRUE COPY OF THE APPEAL FOR AY 2008-09 DATED 08.04.2016 FILED BEFORE THE 2ND RESPONDENT. EXHIBIT P6 A TRUE COPY OF THE APPEAL FOR AY 2013-14 DATED 08.04.2016 FILED BEFORE THE 2ND RESPONDENT EXHIBIT P7 A TRUE COPY OF THE APPELLATE ORDER NO.A7 2008-09 ISSUED BY THE 2ND RESPONDENT DATED 12.12.2019. EXHIBIT P8 A TRUE COPY OF THE APPELLATE ORDER FOR AY 2013-14 ISSUED BY THE 2ND RESPONDENT DATED 12.12.2019. EXHIBIT P9 A TRUE COPY OF THE PETITION FOR RECTIFICATION OF MISTAKE BEFORE THE 2ND RESPONDENT DATED 08.02.2029 FOR AY2008- 09 EXHIBIT P10 A TRUE COPY OF THE PETITION FOR RECTIFICATION OF MISTAKE BEFORE THE 2ND RESPONDENT DATED 08.02.2020 FOR AY 2013- 14 EXHIBIT P11 A TRUE COPY OF THE LETTER OF DEMAND ISSUED BY THE 1ST RESPONDENT DATED 07.02.2020 FOR AY 2008-09 WP(C).No.4106 OF 2020(K) 5 EXHIBIT P12 A TRUE COPY OF THE LETTER OF DEMAND ISSUED BY THE 1ST RESPONDENT DATED 07.02.2020 FOR AY 2013-14. //TRUE COPY// P.A TO JUDGE "