Kadavalloor Service Co-operative Bank Ltd. No. 3821 V. The Income Tax Officer Ward I & TPS and State Bank of India Perumpilavu Branch

WP(C)/31648/2023

AI Insights

The case involves Kadavalloor Service Co-operative Bank Ltd., which filed two writ petitions challenging the assessment orders and subsequent tax levies for the assessment years 2008-2009 and 2010-2011 under various sections of the Income Tax Act, 1961. The bank's appeals to the Commissioner of Income Tax Appeals were dismissed, leading to further appeals to the Income Tax Appellate Tribunal, which were still pending. Meanwhile, garnishee notices were issued, and the bank's account was attached, resulting in the payment of Rs.27,77,170 to the tax department. The main legal contention revolved around the challenge to the assessment orders and the procedural handling of the appeals.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 797865 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 27-09-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: A KUMAR; JOSE JOSEPH
• Assessee Lawyers: P C SASIDHARAN
• Keywords: Garnishee notices; Income tax assessment; Penalty proceedings; Appeal to Income Tax Appellate Tribunal
• Section: 147; 144; 143(3); 271(1)(c); 271B; 271F

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 27TH DAY OF SEPTEMBER 2023 / 5TH ASWINA, 1945 WP(C) NO. 31648 OF 2023 PETITIONER: KADAVALLOOR SERVICE CO-OPERATIVE BANK LTD. NO. 3821 KADAVALLOOR, P.O.KADAVALLUR THRISSUR DISTRICT , REPRESENTED BY ITS SECRETARY., PIN - 680543 BY ADV P.C.SASIDHARAN RESPONDENTS: 1 THE INCOME TAX OFFICER WARD I & TPS, INCOME TAX OFFICE, CITY PLAZA, WEST NADA, GURUVAYOOR, PIN - 680101 2 STATE BANK OF INDIA PERUMPILAVU BRANCH, TRIVENI PLAZA, PERUMPILAVU, THRISSUR, PIN - 680519 ADV.A. KUMAR- SBI ADV.JOSE JOSEPH – INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.09.2023, ALONG WITH WP(C).31660/2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC Nos.31648 & 31660 of 2023 2 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 27TH DAY OF SEPTEMBER 2023 / 5TH ASWINA, 1945 WP(C) NO. 31660 OF 2023 PETITIONER: KADAVALLOOR SERVICE CO-OPERATIVE BANK LTD. NO. 3821 KADAVALLOOR, P.O.KADAVALLUR THRISSUR DISTRICT REPRESENTED BY ITS SECRETARY., PIN - 680543 BY ADV P.C.SASIDHARAN RESPONDENTS: 1 THE INCOME TAX OFFICER WARD I & TPS, INCOME TAX OFFICE, CITY PLAZA, WEST NADA, GURUVAYOOR, PIN - 680101 2 STATE BANK OF INDIA PERUMPILAVU BRANCH, TRIVENI PLAZA, PERUMPILAVU, THRISSUR, PIN - 680519 ADV.A. KUMAR- SBI ADV.JOSE JOSEPH – INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.09.2023, ALONG WITH WP(C).31648/2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC Nos.31648 & 31660 of 2023 3 JUDGMENT Dated this the 27th day of September, 2023 1. These writ petitions have been filed under Article 226 of the Constitution of India by the petitioner, an Agricultural Credit Co-operative Society. Ext.P1 assessment order dated 31.12.2015 in W .P .(C.) No.31648/2023 was passed regarding the income of the petitioner for the assessment year 2008-2009 under Section 144 of the Income Tax Act, 1961. The petitioner’s total income was assessed as Rs.1,15,140/-. Therefore, penalty proceedings under Sections 271F , 271B and 271(1) (C) was separately initiated. 2. In W .P .(C.) No.31660/2023 Ext.P1 order was passed on 19.11.2018 under Section 143(3) read with Section 147 for the assessment year 2010-11, assessing the the petitioner’s total income was assessed as Rs.30,08,820/- on which tax and interest as Rs.26,87,180/- were levied. The petitioner challenged the assessment orders before the Commissioner of Income Tax Appeals. The Appellate Authority has dismissed the appeals. WPC Nos.31648 & 31660 of 2023 4 Against the dismissal of the same, petitioner has filed appeals under Section 253 before the Income Tax Appellate Tribunal as Exts.P5 and P6 in respect of the assessment year 2008-9 and 2010-11 respectively. However, the petitioner has not been granted any interim order and garnishee notices were issued by the Department and the petitioner’s bank account in the State Bank of India was attached. 3. Learned Standing Counsel for the State Bank of India submits that the bank has already remitted an amount of Rs.27,77,170/- in respect of the garnishee notices to the Department in respect of both assessment years. 4. Considering the fact that the tax amount has already been realised from the account of the petitioner maintained in the State Bank of India, this Court cannot direct to refund of the tax amount and therefore, the present writ petitions are disposed of with a direction to the Income Tax Appellate Tribunal to dispose of the pending appeals filed by the petitioner, expeditiously, WPC Nos.31648 & 31660 of 2023 5 preferably within a period of three months from the date of receipt of a copy of this judgment. Sd/- DINESH KUMAR SINGH JUDGE AP WPC Nos.31648 & 31660 of 2023 6 APPENDIX OF WP(C) 31648/2023 PETITIONER EXHIBITS Exhibit P1 THE TRUE COPY OF THE ASSESSMENT ORDER DATED 31/12/2015 ALONG WITH THE STATEMENT OF CALCULATION Exhibit P2 THE TRUE COPY OF THE DEMAND NOTICE DATED 31/12/2015 Exhibit P3 THE TRUE COPY OF THE APPEAL MEMORANDUM DATED 03/02/2016 Exhibit P4 THE TRUE COPY OF THE ORDER DATED 29/5/2023 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS) Exhibit P5 THE TRUE COPY OF THE APPEAL DATED 6/9/2023 FILED BY THE PETITIONER BEFORE THE INCOME TAX APPELLATE TRIBUNAL Exhibit P6 THE TRUE COPY OF THE ACKNOWLEDGEMENT OF E- FILING OF INCOME TAX APPEAL DATED 7/9/2023 Exhibit P7 THE TRUE COPY OF THE STAY PETITION DATED 19/9/2023 FILED BY THE PETITIONER BEFORE THE APPELLATE TRIBUNAL Exhibit P8 THE TRUE COPY OF THE ACKNOWLEDGEMENT OF E- FILING OF STAY APPLICATION DATED 19/9/2023 Exhibit P9 THE TRUE COPY OF THE PETITION DATED 21/9/2023 FILED BY THE PETITIONER BEFORE THE APPELLATE TRIBUNAL Exhibit P10 THE TRUE COPY OF THE NOTICE DATED 18/9/2023 ISSUED BY THE 1ST RESPONDENT Exhibit P11 THE TRUE COPY OF THE STATEMENT OF ACCOUNTS FURNISHED BY THE 2ND RESPONDENT Exhibit P12 THE TRUE COPY OF THE JUDGMENT DATED 20/01/2020 IN W.A.NO. 2488 OF 2019 Exhibit P13 THE TRUE COPY OF THE JUDGMENT IN W.P(C).NO. 8822/2020 DATED 23/03/2020 WPC Nos.31648 & 31660 of 2023 7 APPENDIX OF WP(C) 31660/2023 PETITIONER EXHIBITS Exhibit P1 THE TRUE COPY OF THE ASSESSMENT ORDER DATED 19/11/2018 ALONG WITH THE STATEMENT OF CALCULATION Exhibit P2 THE TRUE COPY OF THE DEMAND NOTICE DATED 19/11/2018 Exhibit P3 THE TRUE COPY OF THE APPEAL MEMORANDUM DATED 28/12/2018 Exhibit P4 THE TRUE COPY OF THE JUDGMENT DATED 18/3/2020 IN W.P(C) NO.8577/2020 Exhibit P5 THE TRUE COPY OF THE ORDER DATED 31/5/2023 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS) Exhibit P6 THE TRUE COPY OF THE APPEAL DATED 7/9/2023 FILED BY THE PETITIONER BEFORE THE INCOME TAX APPELLATE TRIBUNAL Exhibit P7 THE TRUE COPY OF THE ACKNOWLEDGEMENT OF E- FILING OF INCOME TAX APPEAL DATED 9/8/2023 Exhibit P8 THE TRUE COPY OF THE STAY PETITION DATED 19/9/2023 FILED BY THE PETITIONER BEFORE THE APPELLATE TRIBUNAL Exhibit P9 THE TRUE COPY OF THE ACKNOWLEDGEMENT OF E- FILING OF STAY APPLICATION DATED 19/9/2023 Exhibit P10 THE TRUE COPY OF THE PETITION DATED 21/9/2023 FILED BY THE PETITIONER BEFORE THE APPELLATE TRIBUNAL Exhibit P11 THE TRUE COPY OF THE NOTICE DATED 18/9/2023 ISSUED BY THE 1ST RESPONDENT Exhibit P12 THE TRUE COPY OF THE STATEMENT OF ACCOUNTS FURNISHED BY THE 2ND RESPONDENT Exhibit P13 THE TRUE COPY OF THE JUDGMENT DATED 20/01/2020 IN W.A.NO. 2488 OF 2019 Exhibit P14 THE TRUE COPY OF THE JUDGMENT IN W.P(C).NO.8822/2020 DATED 23/03/2020 "