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

WP(C)/2894/2020

AI Insights

The case involves the Kaviyoor Service Co-operative Bank Ltd., which is contesting an income tax assessment and demand notice issued by the Income Tax Officer, Thiruvalla. The bank, registered under the Co-operative Societies Act, appealed against the assessment of Rs.89,09,079 and a tax liability of Rs.35,50,244. While the appeal was pending, the bank sought a stay on the recovery proceedings, which was conditionally granted, requiring a 20% deposit of the demanded amount. The bank filed a writ petition seeking a complete stay on the recovery proceedings until the appeal and stay petitions were fully considered.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 754237 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 03-02-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act, Co-operative Societies Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: P C SASIDHARAN
• Keywords: Assessment Order; Demand notice; Income Tax; Stay of Recovery Proceedings; Writ petition
• Section: 156

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE ALEXANDER THOMAS MONDAY, THE 3RD DAY OF FEBRUARY 2020 / 14TH MAGHA, 1941 WP(C).No.2894 OF 2020(J) PETITIONER: THE KAVIYOOR SERVICE CO-OPERATIVE BANK LTD., NO.A707, KAVIYOOR P.O., THIRUVALLA-689582, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.P.C.SASIDHARAN RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS), PUBLIC LIBRARY BUILDINGS, SASHTRI ROAD, KOTTAYAM-686001. 2 THE INCOME TAX OFFICER WARD 5, OFFICE OF THE INCOME TAX, THIRUVALLA-689582. SRI.JOSE JOSEPH, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ALEXANDER THOMAS, J. ------------------------------------- W.P.(C) No. 2894 of 2020 ------------------------------------- Dated this the 3rd day of February, 2020 J U D G M E N T The case projected in this Writ Petition (Civil) are as follows: The petitioner is a primary agricultural credit society registered under the provisions of the Co-operative Societies Act and Rules framed thereunder. The petitioner is an assessee on the file of the 2nd respondent. The assessing officer assessed a total income of Rs.89,09,079/- and arrived at a finding of aggregate income tax liability of Rs.35,50,244/- under various heads and issued a demand notice under Sec.156 of the Income Tax Act, demanding an amount of Rs.35,50,244/-. Aggrieved by the assessment made, an appeal was preferred before the 1st respondent Commissioner of Income Tax Appeals. The petitioner also moved a petition before the recovery officer to stay the recovery proceedings since the appeal is pending before him. Now the Income Tax Officer issued an order to remit 20% of the total demand raised and states that the stay of demand will be considered only on payment of 20% of the total demand amount. Since the stay granted is only a conditional stay, W.P.(C) No. 2894 of 2020 ..3.. the petitioner preferred a petition for complete stay of the recovery proceedings. No orders were passed on the stay petition. The appeal and stay against the assessment and demand notice are pending and if the amount is recovered serious prejudice will be caused to the petitioner Bank. It is in the light of these averments and contentions that the petitioner has filed the instant Writ Petition (Civil) with the following prayers: “ i. To issue a writ of certiorari quashing Exhibits P2, P3 and P7; ii. To issue a writ of mandamus or other appropriate writ, order ` or direction commanding and compelling the respondents to consider the Ext.P5 appeal and Exts.P6 and P8 stay petitions preferred by the petitioner within a time frame stipulated by this Hon'ble Court. iii. Issue a writ of mandamus or other appropriate writ order or direction commanding and compelling the respondents not to proceed with any recovery proceedings till the stay petitions are considered and appropriate orders passed therein. iv. To issue such other writ, order or direction as this Honourable Court may deem fit and proper in the case.” 2. Heard Sri.P.C.Sasidharan, learned counsel appearing for the petitioner, Sri.Jose Joseph, learned Standing Counsel for the Income Tax Department, Government of India, appearing for the respondents. 3. Sri.Jose Joseph, learned Standing Counsel for the Income Tax Department, appearing for the respondents submits that it is for the petitioner to make pre-deposit of 20% of the W.P.(C) No. 2894 of 2020 ..4.. demand amount for securing stay, etc. 4. Without getting into the merits of the controversy in any manner, it is for the 1st respondent to take up the matter in Ext.P-6 stay application filed in Ext.P-5 appeal without much delay, and after affording reasonable opportunity of being heard to the petitioner, will pass orders without much delay, preferably within a period of 4 to 6 weeks from the date of production of a certified copy of this judgment. Until orders are passed on Ext.P-6 stay application, further coercive steps for enforcement of impugned Ext.P-2 assessment order may be kept in abeyance. It is made clear that the 1st respondent may pass orders on Ext.P-6 stay application in accordance with law. With these observations and directions, the above Writ Petition (Civil) will stand disposed of. Sd/- ALEXANDER THOMAS, JUDGE MMG W.P.(C) No. 2894 of 2020 ..5.. APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE CERTIFICATE OF REGISTRATION DATED 12.3.2012 EXHIBIT P2 TRUE COPY OF THE ASSESSMENT ORDER DATED 23.12.2019 EXHIBIT P3 TRUE COPY OF THE DEMAND NOTICE DATED 23.12.2019 EXHIBIT P4 TRUE COPY OF THE COMPUTATION SHEET ALONG WITH THE ASSESSMENT ORDER EXHIBIT P5 TRUE COPY OF THE APPEAL DATED 22.1.2020 EXHIBIT P6 TRUE COPY OF THE STAY PETITION DATED 22.01.2020 EXHIBIT P7 TRUE COPY OF THE ORDER DATED 24.01.2020 EXHIBIT P8 TRUE COPY OF THE PETITION "