ITHITHANAM SERVICE CO-OPERATIVE BANK LTD V. COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/31209/2019

AI Insights

The case involves M/s. Ithithanam Service Co-operative Bank Ltd., which challenged the stay order issued by the Commissioner of Income Tax (Appeals) regarding an assessment order under the Income Tax Act. The assessment order (Ext.P1) and the subsequent demand notice (Ext.P2) led the petitioner to file an appeal (Ext.P3) and a stay petition (Ext.P4). The stay order (Ext.P6) required the petitioner to pay 20% of the demand, which the petitioner contested as being issued without proper consideration of similar cases where stays were granted pending appeal. The court found merit in the petitioner's argument, leading to the quashing of the stay order and directing a timely resolution of the appeal.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 695297 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 19-11-2019
• Assessment Year: misc
• Other Referred Cases: WPC NO.2674 OF 2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: A KUMAR; P J ANILKUMAR; G MINI; P S SREE PRASAD; AJAY ANAND; ABRAHAM JOB
• Keywords: Assessment Order; Deduction Disallowance; Income Tax; Stay Petition
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR TUESDAY, THE 19TH DAY OF NOVEMBER 2019/28TH KARTHIKA, 1941 W.P(C).No.31209 OF 2019(A) PETITIONER: M/S.ITHITHANAM SERVICE CO-OPERATIVE BANK LTD., MALAKUNNAM P.O, CHANGANCHERRY, KOTTAYAM 686 535 REPRESENTED BY ITS' SECRETARY MR. KURIAN POTHEN. BY ADVS.SRI.A.KUMAR SRI.P.J.ANILKUMAR SMTG.MINI(1748) SRI.P.S.SREE PRASAD SRI.AJAY V.ANAND SHRI.ABRAHAM JOB RESPONDENTS: 1 COMMISSIONER OF INCOME TAX (APPEALS) PUBLIC LIBRARY BUILDING, SASTRI ROAD, KOTTAYAM 686 001 2 INCOME TAX OFFICER, OFFICE OF THE INCOME TAX OFFICER, WARD 4, TIRUVALLA 689 101 BY SRI.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.11.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No.31209/2019 : 2 : J U D G M E N T Against Ext.P1 assessment order under the Income Tax Act, the petitioner had preferred Ext.P3 appeal along with Ext.P4 stay petition before the 1st respondent. By Ext.P6 stay order, the 1st respondent directed the petitioner to pay 20% of the confirmed demand as a pre-condition for grant of stay against recovery of the balance amounts pending disposal of the appeal. It is the contention of the learned counsel for the petitioner that Ext.P6 stay order is vitiated by a non-application of mind, and further, the issue involved relates to the disallowance of deduction under Section 80P of the Income Tax Act, where, in similar matters, this Court has directed the Appellate Authority to consider and pass orders in the appeal while granting stay against recovery pending disposal of the appeal. 2. I have heard the learned counsel for the petitioner as also the learned Standing Counsel for the respondents. On a consideration of the facts and circumstances of the case as also the submissions made across the bar, and finding W.P.(C).No.31209/2019 : 3 : that in similar cases, this Court has directed the Appellate Authority to dispose the appeal, I dispose the writ petition by quashing Ext.P6 order, and directing the 1st respondent to consider and pass orders on Ext.P3 appeal within an outer time limit of six months from the date of receipt of a copy of this judgment, after hearing the petitioner. It is made clear that till such time as orders are passed by the 1st respondent as directed, and the order communicated to the petitioner, recovery steps for recovery of amounts confirmed against the petitioner by Ext.P1 assessment order shall be kept in abeyance. The petitioner shall produce a copy of the writ petition together with a copy of this judgment, before the 1st respondent, for further action. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE prp/19/11/19 W.P.(C).No.31209/2019 : 4 : APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 07-12-2018. EXHIBIT P2 TRUE COPY OF THE NOTICE OF DEMAND DATED 07-12-2018. EXHIBIT P3 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 05-01-2019 EXHIBIT P4 TRUE COPY OF APPLICATION FOR STAY DATED 23-05-2019 EXHIBIT P5 TRUE COPY OF THE JUDGMENT IN WPC NO.2674 OF 2019 DATED 24-05-2019 EXHIBIT P6 RESPONDENTS EXHIBITS: TRUE COPY OF ORDER DATED 16-10-2019. NIL. //TRUE COPY// P.S. TO JUDGE "