THE KATTTAKODE SERVICE CO-OPERATIVE BANK LTD. NO. T 145, V. INCOME TAX OFFICER,

WP(C)/34504/2019

AI Insights

The case involves the Kattakode Service Co-operative Bank Ltd., which challenged a rectification order under the Income Tax Act concerning the disallowance of a deduction claimed under Section 80P. The bank had previously filed an appeal and several petitions (including for delay condonation and stay) with the Income Tax Appellate Tribunal, Cochin Bench. The primary contention was that recovery actions were initiated by the income tax authorities before the Tribunal could consider the stay petition. The High Court, referencing similar cases, decided to stay the recovery actions and expedite the Tribunal's decision on the appeal.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 695526 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 17-12-2019
• Assessment Year: misc
• Other Referred Cases: WPC No. 27295 of 2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: S RAJ; C T SUJA; ARJUN RAJ
• Keywords: Deduction Disallowance; Delay condonation; Income Tax; Recovery Steps; Rectification Order; Section 80P; Stay Petition
• Section: 143(3); 250; 154; 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR TUESDAY, THE 17TH DAY OF DECEMBER 2019/26TH AGRAHAYANA, 1941 W.P(C).No.34504 OF 2019 PETITIONER: THE KATTTAKODE SERVICE CO-OPERATIVE BANK LTD. NO. T 145, KATTAKODE, KATTAKADA, TRIVANDRUM - 695 572, REPRESENTED BY ITS SECRETARY THOMAS JOHN. BY ADVS.SRI.S.ARUN RAJ SMT.C.T.SUJA SRI.ARJUN S.RAJ RESPONDENTS: 1 INCOME TAX OFFICER, WARD-2(2), AYAKAR BHAWAN, 1ST FLOOR, KOWDIAR P.O., TRIVANDRUM - 695 003. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAWAN, KOWDIAR P.O., TRIVANDRUM - 695 003. 3 INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, KENDRIYA BHAVAN, KAKKANAD, ERNAKULAM - 682 037. BY SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.12.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No.34504/2019 :: 2 :: J U D G M E N T Against Ext.P3 rectification order under the Income Tax Act, the petitioner has preferred Ext.P4 appeal together with Ext.P5 delay condonation petition as also Ext.P6 stay petition before the 3rd respondent. It is the case of the petitioner that even prior to considering the stay petition, recovery steps are taken by the respondents against the petitioner for recovery of the amounts confirmed by Ext.P3 rectification order. It is stated by the learned counsel for the petitioner that the issue involved in the appeal pertains to dis-allowance of deduction claimed under Section 80P of the Income Tax Act. 2. I have heard the learned counsel appearing for the petitioner and also the learned Standing counsel appearing for the respondents. On a consideration of the facts and circumstances of the case as also the submissions made across the Bar and taking note W.P.(C).No.34504/2019 :: 3 :: of the fact that in similar matters, this Court has directed the Appellate Authority to consider and pass orders in the appeal and stayed the recovery of disputed amounts pending disposal of the appeal. Taking note of the fact that delay occassioned in filing the appeal before the 3rd respondent is only 14 days, I deem it appropriate to condone the delay, and dispose this Writ petition with a direction to the 3rd respondent to consider and pass orders on Ext.P4 appeal within an outer time limit of six months from the date of receipt of a copy of this judgment. Recovery steps for recovery of amounts confirmed against the petitioner by Ext.P3 rectification order shall be kept in abeyance till such time as orders are passed by the 3rd respondent as directed above and communicated to the petitioner. The petitioner shall produce a copy of the writ petition together with a copy of this judgment, before the 3rd respondent, for further action. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE prp/17/12/19 W.P.(C).No.34504/2019 :: 4 :: APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 20-11- 2017 PASSED BY THE 1ST RESPONDENT UNDER SECTION 143(3) OF THE ACT FOR THE AY 2011-12. EXHIBIT P2 TRUE COPY OF THE ORDER DATED 05-03-2019 PASSED BY THE COMMISSIONER OF THE INCOME TAX (APPEALS), TRIVANDRUM UNDER SECTION 250 OF THE ACT ALLOWING THE APPEAL OF THE PETITIONER FOR THE AY 2011-12. EXHIBIT P3 TRUE COPY OF THE ORDER DATED 03-09-2019 PASSED BY THE COMMISSIONER OF THE INCOME TAX (APPEALS), TRIVANDRUM UNDER SECTION 154 R.W.S. 250 OF THE ACT FOR THE AY 2011-12. EXHIBIT P4 TRUE COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH FOR THE AY 2011-12. EXHIBIT P5 TRUE COPY OF THE DELAY CONDONATION PETITION (DELAY OF 14 DAYS) FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT. EXHIBIT P6 TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT FOR THE AY 2011-12. EXHIBIT P7 TRUE COPY OF THE JUDGMENT DATED 04-12-2019 PASSED BY THIS HON'BLE COURT IN WPC NO. 27295 OF 2019 IN THE CASE OF PACS PERTAINING TO DISALLOWANCE UNDER SECTION 80 P. RESPONDENTS EXHIBITS: NIL. //TRUE COPY// P.S. TO JUDGE "