M/S. INDIA COFFEE BOARD V. THE INCOME TAX OFFICER

WP(C)/11547/2013

AI Insights

The case involves M/S. India Coffee Board Workers' Co-operative Society, which filed a writ petition against the Income Tax Officer and the Commissioner of Income Tax (Appeals). The petitioner contested the coercive recovery actions initiated based on the assessment orders for the years 2007-08, 2009-10, 2010-11, and 2011-12. The primary legal issue was the rejection of an exemption under Section 80P(2)(a)(vi) of the Income Tax Act, which led to substantial tax demands. The petitioner had filed statutory appeals and stay applications regarding these assessments, which were pending before the Commissioner of Income Tax (Appeals). The court decided to stay the coercive recovery actions until the appeals were resolved, provided the petitioner made a partial payment of the assessed demands.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 699713 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 30-04-2013
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SHOBA EAPEN
• Assessee Lawyers: T M SREEDHARAN; V P NARAYANAN; DIVYA RAVINDRAN
• Keywords: Assessment orders; Coercive Steps; Exemption; Income Tax; Stay Petition
• Section: 220(6); 80P(2)(a)(vi)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN TUESDAY, THE 30TH DAY OF APRIL 2013/10TH VAISAKHA 1935 WP(C).No. 11547 of 2013 (P) ---------------------------- PETITIONER(S) : --------------------- M/S. INDIA COFFEE BOARD WORKERS' CO-OPERATIVE SOCIETY, M.G.ROAD THRISSUR - 680 001 - REPRESENTED BY ITS SECRETARY SHRI.E.S.JOJI BY ADVS.SRI.T.M.SREEDHARAN (SR.) SRI.V.P.NARAYANAN SMT.DIVYA RAVINDRAN RESPONDENT(S) : ----------------------- 1. THE INCOME TAX OFFICER, WARD -2(2), THRISSUR - 680 001. 2. THE COMMISSIONER OF INCOME TAX (APPEALS) - V KERA BHAVAN, 6TH FLOOR, SRVHS ROAD COCHIN - 682 011. BY SENIOR GOVERNMENT PLEADER SMT. SHOBA ANNAMMA EAPEN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30-04-2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: BP WP(C).No. 11547 of 2013 (P) ---------------------------- APPENDIX PETITIONER(S)' EXHIBITS ------------------------------------- EXHIBIT P1: TRUE COPY OF THE ASSESSMENT ORDER DATED 25/03/2013 ISSUED BY THE 1ST RESPONDENT FOR THE ASST. YEAR 2007-08. EXHIBIT P2: TRUE COPY OF APPELLATE ORDER OF THE SECOND RESPONDENT IN ITA NO.40/R-II/TCR/CIT(A)- V/2010-11 FOR THE ASST. YEAR 2008-09 DATED 28/06/2011. EXHIBIT P3: TRUE COPY OF ASSESSMENT ORDER DATED 25/03/2013 ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2009-10. EXHIBIT P4: TRUE COPY OF ASSESSMENT ORDER DATED 25/03/2013 ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2010-11. EXHIBIT P5: TRUE COPY OF ASSESSMENT ORDER DATED 25/03/2013 ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2011-12. EXHIBIT P6: TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 15/04/2013 SUBMITTED BY THE PETITIONER BEFORE THE SECOND RESPONDENT FOR THE ASST. YEAR 2007-08 EXHIBIT P6(A): TRUE COPY OF STAY PETITION DATED 15/04/2013 SUBMITTED BY THE PETITIONER BEFORE THE SECOND RESPONDENT FOR THE ASST. YEAR 2007-08 EXHIBIT P7: TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 15/04/2013 SUBMITTED BY THE PETITIONER BEFORE THE SECOND RESPONDENT FOR THE ASST. YEAR 2009-10 EXHIBIT P7(A): TRUE COPY OF STAY PETITION DATED 15/04/2013 SUBMITTED BY THE PETITIONER BEFORE THE SECOND RESPONDENT FOR THE ASST. YEAR 2009-10 EXHIBIT P8: TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 15/04/2013 SUBMITTED BY THE PETITIONER BEFORE THE SECOND RESPONDENT FOR THE ASST. YEAR 2010-11 EXHIBIT P8(A): TRUE COPY OF THE STAY PETITOIN DATED 15/04/2013 SUBMITTED BY THE PETITIONER BEFORE THE SECOND RESPONDENT FOR THE ASST. YEAR 2010-11 EXHIBIT P9: TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 15/04/2013 SUBMITTED BY THE PETITIONER BEFORE THE SECOND RESPONDENT FOR THE ASST. YEAR 2011-12 EXHIBIT P9(A): TRUE COPY OF THE STAY PETITOIN DATED 15/04/2013 SUBMITTED BY THE PETITIONER BEFORE THE SECOND RESPONDENT FOR THE ASST. YEAR 2011-12. EXHIBIT P10: TRUE COPY OF THE APPLICATION DATED 25/04/2013 U/S.220(6) OF THE INCOME TAX ACT FOR THE ASST. YEAR 2007-08 EXHIBIT P10(A): TRUE COPY OF THE APPLICATION -DO FOR THE ASST. YEAR 2009-10 EXHIBIT P10(B): TRUE COPY OF THE APPLICATION -DO FOR THE ASST. YEAR 2010-11 EXHIBIT P10(C): TRUE COPY OF THE APPLICATION -DO FOR THE ASST. YEAR 2011-12 RESPONDENT(S)' EXHIBITS : NIL. --------------------------------------- //TRUE COPY// P.A. TO JUDGE BP K.VINOD CHANDRAN,J ---------------------------------- W.P.(C). NO. 11547 of 2013 ------------------------------------- Dated this the 30th day of April, 2013 J U D G M E N T The petitioner is aggrieved by the initiation of coercive steps for satisfying the demands made by the assessment orders Exts.P1 and P3 to P5. The petitioner's primary contention is that the exemption claimed under Section 80P(2)(a)(vi) was rejected and that resulted in huge additions being made, which is prima facie illegal.This Court however, is not considering an appeal from the assessment orders nor is it expected to consider the merits of the issue when admittedly statutory appeals have been filed before the second respondent for the assessment years 2007-08,2009- 10,210-11 and 2011-12. The petitioner's grievance in the writ petition is that despite filing of stay applications in the afore mentioned appeals, the first respondent is W.P.(C). NO. 11547 of 2013 2 taking hasty steps to initiate coercive action for the recovery of demands. 2. In the circumstance stated above, as also the various contentions raised in the writ petition, this Court deems it fit that the coercive steps be kept in abeyance till the appeals filed before the second respondent are disposed of, but on condition of deposit of one third demand. In such circumstance, the coercive steps for satisfying the demands as per Exts.P1 and P3 to P5 are hereby stayed till the disposal of first appeal filed against the said assessment orders on condition that the petitioner shall satisfy one third of the demand raised for the afore mentioned assessment years in four monthly instalments starting on 01.06.2013 and the first of every subsequent months. W.P.(C). NO. 11547 of 2013 3 Writ Petition is disposed of as above. No costs Sd/- K.VINOD CHANDRAN, Judge True Copy P.A to Judge lsn "