ELOOR SERVICE CO OPERATIVE BANK LTD. V. THE INCOME TAX OFFICER

WP(C)/9658/2020

AI Insights

The case involves M/s. Eloor Service Co-op. Bank Ltd., the petitioner, who challenged the disallowance of their claim for deduction under Section 80P of the Income Tax Act for the assessment years 2013-14 and 2017-18. The Income Tax Officer, Ward \\u2013 1, TPS, Kap, and the Commissioner of Income Tax (Appeals) were the respondents. The petitioner had filed appeals against the disallowed deductions, which were still pending when the respondents initiated recovery proceedings. The court found that proceeding with these coercive steps while the appeals were pending would render the appeals redundant and cause severe difficulties to the petitioner.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 760846 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 05-05-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: V P NARAYAN; NISHA JOHN; DIVYA RAVINDRAN; BASKARAKRISHNAN R
• Keywords: Appeal; Assessment; Coercive Steps; Deduction; Income Tax
• Section: 80P

Judgement Text

"W.P(C) NO.9658 OF 2020 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE BECHU KURIAN THOMAS TUESDAY, THE 05TH DAY OF MAY, 2020/15TH VAISAKHA, 1942 W.P(C) NO.9658 OF 2020 PETITIONER M/S. ELOOR SERVICE CO-OP. BANK LTD. NO.E-103, CO-OPERATIVE BANK LTD. UDYOGAMANDAL, ERNAKULAM – 683 501 REPRESENTED BY ITS SECRETARY, SMT. M. K. PREMALATHA BY ADVS. SRI. V.P NARAYAN, SMT. NISHA JOHN, SMT.DIVYA RAVINDRAN AND SRI.BASKARAKRISHNAN .R RESPONDENTS 1. THE INCOME TAX OFFICER, WARD – 1, TPS, KAP COMMERCIAL COMPLEX O/O ADDITIONAL COMMISSIONER OF INCOME TAX ALUVA RANGE, R.S. ROAD, ALUVA – 683 101 2. THE COMMISSIONER OF INCOME TAX (APPEALS), 28/243, “POORNIMA”, NEAR MANORAMA JUNCTION, PANAMPILLY NAGAR,KOCHI – 682 036 BY SRI.JOSE JOSEPH, SC THIS WRIT PETITION HAVING COME UP FOR ADMISSION ON 05.05.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C) NO.9658 OF 2020 2 JUDGMENT I have heard the counsel for the petitioner through video conferencing. I have also heard the standing counsel for income tax who has taken notice on behalf of respondents. In the facts and circumstances of the case, I deem it fit that this writ petition be disposed of. 2. Petitioner is an income tax assessee and the issue relates to the assessment years 2013-14 and 2017-18. By Exts.P1 and P2, the 1st respondent disallowed petitioner’s claim for deduction under Section 80P of the Income Tax Act and demanded an amount of Rs.2,36,86,840/- and Rs.3,43,97,528 respectively as tax. 3. Challenging the said assessment, petitioner has preferred Exts.P3 and P4 appeals contending that the reason for disallowing petitioner’s claim for deduction under section 80P is not tenable. While the appeal is pending, the W.P(C) NO.9658 OF 2020 3 respondents have initiated recovery proceedings to recover the tax allegedly due. 4. I find force in the contention of the counsel for the petitioner that if the respondents proceed with coercive steps pending consideration of the statutory appeal, the same will be rendered redundant and petitioner will be put to severe difficulties. 5. In such circumstances, I dispose of the writ petition by directing the respondents not to proceed with any coercive steps against the petitioner pending disposal of Exts.P3 and P4 appeals. I also direct the 2nd respondent to consider and dispose of Exts.P3 and P4 appeals within a period of 6 months without insisting on payment of 10% of the tax demanded. Sd/- BECHU KURIAN THOMAS JUDGE vps W.P(C) NO.9658 OF 2020 4 APPENDIX PETITIONERS EXTS: EXHIBIT-P1 – TRUE COPY OF ASSESSMENT ORDER DATED 28.03.2016 FOR AY-2013-14 ALONG WITH DEMAND NOTICE PASSED BY THE 1ST RESPONDENT. EXHIBIT–P2 – TRUE COPY OF ASSESSMENT ORDER DATED 30.12.2019 FOR AY-2017-18 ALONG WITH DEMAND NOTICE PASSED BY THE 1ST RESPONDENT. EXHIBIT-P3– TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 27.04.2016 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2013-14. EXHIBIT-P3(A)– TRUE COPY OF THE STAY PETITION DATED 25.06.2019 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2013-14. EXHIBIT-P4 - TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 24.01.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2017-18. EXHIBIT-P4(A)- TRUE COPY OF THE STAY PETITION DATED 13.03.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2017-18. "