KANNUR BUILDING MATERIALS MARKETING CO-OPERATIVE SOCIETY LTD. NO C-1741, V. THE INCOME TAX OFFICER,

WP(C)/7648/2020

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The case involves Kannur Building Materials Marketing Co-operative Society Ltd., which challenged the demand by the Income Tax Department for a 20% payment of the assessed tax as a precondition for considering their appeals against the assessment orders. The petitioner had filed appeals against multiple assessment orders for different assessment years, which were pending before the Commissioner of Income Tax (Appeals). The court referenced a previous decision (W.A No.1536 of 2019) where such a demand was deemed improper. Consequently, the court ordered the Commissioner to proceed with the appeals without the precondition of the 20% tax payment and to hold the recovery proceedings until the appeals are resolved.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 753790 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 12-03-2020
• Assessment Year: misc
• Other Referred Cases: W.A No.1536 of 2019
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: C A JOJO; MATHEWS JOSEPH
• Keywords: Appeal; Assessment Order; Co-operative Society; Income Tax; Recovery proceedings

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE V.G.ARUN THURSDAY, THE 12TH DAY OF MARCH 2020 / 22ND PHALGUNA, 1941 WP(C).No.7648 OF 2020(E) PETITIONER/S: KANNUR BUILDING MATERIALS MARKETING CO-OPERATIVE SOCIETY LTD. NO C-1741, REPRESENTED BY ITS SECRETARY, PAPPINISSERY P.O., KANNUR DISTRICT - 670 561. BY ADVS. SRI.C.A.JOJO SRI.MATHEWS JOSEPH RESPONDENT/S: 1 THE INCOME TAX OFFICER, CIRCLE-1, KANNUR RANGE, AAYAKAAR BHAVAN, KANNOTHUMCHAL, CHOVA P.O., PIN - 670 006. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), OFFICE OF THE COMMISSIONER OF INCOME TAX (APPEALS), MANANCHIRA P.O., KOZHIKODE, PIN - 673 001. BY SC CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.7648 OF 2020 2 JUDGMENT Dated this the 12th day of March 2020 As against Exts.P1, P4 and P7 assessment orders, the petitioner, a co-operative society, has preferred Exts.P3, P6 and P9 appeals before the 2nd respondent. The grievance of the petitioner is that the recovery officer is demanding payment of 20% of the tax assessed as a condition for consideration of the appeal. 2. I have heard learned standing counsel for the Income Tax department also. 3. The correctness of the insistance of payment of 20% of the tax assessed against co-operative societies, pending consideration of appeals against the assessment orders was considered by a Division Bench in W.A No.1536 of 2019, and the insistance was held to be bad. Therefore, considering the limited nature of the relief sought, the writ petition is disposed of directing the 2nd WP(C).No.7648 OF 2020 3 respondent to take a decision on Exts.P3, P6 and P9 appeals in accordance with law, after affording an opportunity of hearing to the petitioner within a period of three months from the date of receipt of a copy of this judgment. Till a decision is taken on the appeals, recovery proceedings pursuant to Exts.P1, P4 and P7 assessment orders shall be kept in abeyance. The writ petition is disposed of accordingly. Sd/- V.G.ARUN JUDGE uu 13.03.2020 WP(C).No.7648 OF 2020 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER 2015-16 DATED 21/12/2017 WITH DEMAND NOTICE ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 A TRUE COPY OF THE DEMAND NOTICE ISSUED BY THE FIRST RESPONDENT 21/12/2017. EXHIBIT P3 A TRUE COPY OF THE APPEAL BEFORE THE 2ND RESPONDENT FOR DATED 21/01/2018. EXHIBIT P4 A TRUE COPY OF THE ASSESSMENT ORDER DATED 27/12/2018 FOR AY 2016-17 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P5 A TRUE COPY OF THE DEMAND NOTICE ISSUED BY THE FIRST RESPONDENT 27/12/2018. EXHIBIT P6 A TRUE COPY OF THE APPEAL BEFORE THE 2ND RESPONDENT FOR AY 2016-17 DATED 26/01/2019. EXHIBIT P7 A TRUE COPY OF THE ASSESSMENT ORDER DATED 25/11/2019 FOR AY 2017-18 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P8 A TRUE COPY OF THE DEMAND NOTICE ISSUED BY THE FIRST RESPONDENT 25/11/2019. EXHIBIT P9 A TRUE COPY OF THE APPEAL BEFORE THE 2ND RESPONDENT FOR AY 2017-18 DATED 30/12/2019. EXHIBIT P10 A TRUE COPY OF THE ORDER DATED 25/02/2020 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P11 A TRUE COPY OF THE NOTICE OF DEMAND FOR 20% DATED 03/03/2020 ISSUED BY THE FIRST RESPONDENT. "