THE KARARINAKAM SERVICE CO-OPERATIVE BANK LTD. V. THE INCOME TAX OFFICER

WP(C)/8766/2020

AI Insights

The case involves the Kararinakam Service Co-operative Bank Ltd., which appealed against an assessment order by the Income Tax Officer concerning deductions under Section 80P of the Income Tax Act applicable to co-operative societies. The Appellate Authority had issued a stay order requiring the bank to deposit 20% of the assessed amount to stay the recovery of the remaining balance pending the appeal's outcome. The bank contested this condition, leading to the writ petition in the High Court of Kerala. The court's decision was influenced by similar precedents where it had directed that recovery steps be kept in abeyance pending the disposal of such appeals.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 753284 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 30-09-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: THUSHARA JAMES
• Assessee Lawyers: S RAJ; C T SUJA
• Keywords: Assessment Order; Co-operative societies; Deduction; Income Tax; Stay order
• Section: 143(3); 80P

Judgement Text

"W.P.(C).No.8766/2020 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR WEDNESDAY, THE 30TH DAY OF SEPTEMBER 2020 / 8TH ASWINA, 1942 WP(C).No.8766 OF 2020(U) PETITIONER/S: THE KARARINAKAM SERVICE CO-OPERATIVE BANK LTD., KADALAYI P.O, KANNUR-670 007, REPRESENTED BY ITS SECRETARY P P SUNANDA KUMARI. BY ADVS. SRI.S.ARUN RAJ SMT.C.T.SUJA RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD -1 AND TPS, KANNUR RANGE, KANNUR-670 006. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, KOZHIKODE-673 001. 3 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, MANANCHIRA, KOZHIKODE-673 001. OTHER PRESENT: GOVERNMENT PLEADER SRI.THUSHARA JAMES THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30.09.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No.8766/2020 2 J U D G M E N T The petitioner has preferred Ext.P2 appeal along with stay application before the 3rd respondent Appellate Authority. It is stated that the Appellate Authority, by Ext.P4 stay order, mechanically directed the petitioner to deposit 20% of the amount confirmed by Ext.P1 assessment order as a condition for stay of the recovery of the balance amounts, pending disposal of the appeal. 2. The learned counsel for the petitioner would point out that the issue involved in the appeal is the permissibility of a deduction under Section 80P of the Income Tax Act in its application to Co-operative societies, and in connected matters this Court has directed the Appellate Authority to consider and pass orders on the appeal while further directing that recovery steps for recovery of amounts confirmed against the petitioner by the assessment orders shall be kept in abeyance pending disposal of the appeal. 3. I have heard the learned counsel for the petitioner and the learned Government Pleader for the respondents. Taking note of the similar orders passed by this Court, I dispose of the writ petition, by quashing Ext.P4 stay order and directing the 3rd respondent Appellate Authority to consider and pass orders on Ext.P2 appeal within an outer time limit of six months from the date of receipt of a copy of this judgment after hearing the petitioner. Recovery of the amounts confirmed against the petitioner by Ext.P1 W.P.(C).No.8766/2020 3 assessment order shall be kept in abeyance till such time as orders are passed by the 3rd respondent as directed and the order communicated to the petitioner. The Petitioner shall produce a copy of the writ petition and a copy of this judgment before the respondents for further action. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE DG W.P.(C).No.8766/2020 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 28.12.2016 PASSED BY THE 1ST RESPONDENT UNDER SECTION 143(3) OF THE ACT FOR THE AY 2014-15 EXHIBIT P2 TRUE COPY OF THE FIRST APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT FOR THE AY 2014-15 EXHIBIT P3 TRUE COPY OF THE STAY APPLICATION DATED 08.04.2019 FILED BEFORE THE 1ST RESPONDENT FOR THE AY 2014-15. EXHIBIT P4 TRUE COPY OF THE ORDER DATED 24.02.2020 PASSED BY THE 3RD RESPONDENT ON THE STAY APPLICATION. "