THE THRISSUR DISTRICT CO-OPERATIVE BANK LIMITED V. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/5533/2020

AI Insights

The case involves the Thrissur District Co-operative Bank Limited, now the Kerala State Co-operative Bank Ltd, which filed a writ petition against the Commissioner of Income Tax (Appeals) and the Deputy Commissioner of Income Tax, challenging an assessment order that demanded a tax of Rs. 845,24,793 for the assessment year 2016-17. The petitioner had previously been granted a stay on 80% of the tax demand, contingent upon the payment of 20%, which was complied with. However, a subsequent demand for the full payment of the assessed tax led to this writ petition, seeking to maintain the stay during the pendency of the appeal against the assessment order.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 693740 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 26-02-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH; G G MANOJ
• Assessee Lawyers: P C SASIDHARAN
• Keywords: Appeal; Assessment Order; Co-operative Bank; Income Tax; Stay Petition
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI WEDNESDAY, THE 26TH DAY OF FEBRUARY 2020 / 7TH PHALGUNA, 1941 WP(C).No.5533 OF 2020(N) PETITIONER/S: THE THRISSUR DISTRICT CO-OPERATIVE BANK LIMITED, (PRESENTLY THE KERALA STATE CO-OPERATIVE BANK LTD, DISTRICT OFFICE, THRISSUR) SAHAKARANA SATABDHI MANDIRAM, KOVILATHUMPADAM, THRISSUR-680 022, REPRESENTED BY ITS GENERAL MANAGER IN - CHARGE BY ADV. SRI.P.C.SASIDHARAN, SC, THRISSUR DISTRICT CO.OPERATIVE BANK LTD. RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS), THRISSUR-680 001 2 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 2 (1),RANGE-2,THRISSUR-680 001 3 THE STATE BANK OF INDIA, REPRESENTED BY ITS CHIEF MANAGER, MAIN BRANCH, THRISSUR-680 001 R1 & R2 BY SC JOSE JOSEPH R3 BY SRI. G.G.MANOJ, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.5533 OF 2020 2 JUDGMENT Dated this the 26th day of February 2020 Heard Adv.P.C. Sasidharan for petitioner and Standing Counsel Jose Joseph for respondents. 2. The petitioner is a Co-operative Bank. The petitioner filed Ext.P4 appeal and also stay petition in Ext.P6 aggrieved by the order of assessment dated 29.12.2018 in Ext.P1. The petitioner apprehending coercive steps, approached this Court in W.P.(C) No.9506 of 2019 for direction to dispose of stay petition expeditiously. On 27.03.2019, W.P.(C) 9506 of 2019 was disposed of. In Ext.P10 dated 18.07.2019 the stay petition filed by the petitioner is disposed of. The operative portion reads thus: “In this case, assessment u/s 143(3) of the Income Tax Act, 1961 for the assessment year 2016-17 was completed on 29.12.2018, determining total income at Rs.24,23,63,020/- creating demand of Rs.845,24,793/-. Aggrieved with this order, the Appellant filed an appeal by electronically and paper copies were also filed in this office along with application for stay of recovery of demand. The stay petition was represented by Shri.P.Harikrishnanunni, C.A. WP(C).No.5533 OF 2020 3 and the matter was discussed with him. 2. The appellant has informed that 20% of demand is already paid. Therefore, in the circumstances of the case, stay is granted for the balance 80% of the demand upto 30th September, 2019.” 3. The cause of action for filing the writ petition is that respondent no.2 through Ext.P12 calls upon the petitioner to pay the balance of 80% tax under challenge in Ext.P4 appeal. The petitioner on 26.09.2019 filed application for necessary reliefs to continue to maintain the stay during the pendency of Ext.P4 appeal. 4. After chronologically taking note of the dates referred to above, this court is of the view that Ext.P12 ought not to have been issued once the petitioner has complied with the condition of depositing 20% of the tax demanded. It could be that, in Ext.P10 stay has been granted upto 30.09.2019 and the appeal in Ext.P4 is not yet heard. This Court is of the view that the amounts demanded through Ext.P12 if is carried out, the appeal filed by WP(C).No.5533 OF 2020 4 petitioner will be more in the nature of academic pursuit of objections. 5. Therefore, to meet the ends of justice, the writ petition stands disposed of by this judgment, in the circumstances of this case: (a) Ext.P4 appeal is disposed of as expeditiously as possible, preferably within three months from the date of receipt of a copy of this judgment. (b) Stay granted in Ext.P10 order stands extended till the appeal is disposed of and order communicated to petitioner. (c) No order as to costs. Sd/- S.V.BHATTI JUDGE uu/jjj WP(C).No.5533 OF 2020 5 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 29.12.2018 EXHIBIT P2 TRUE COPY OF THE DEMAND NOTICE DATED 29.12.2018 EXHIBIT P3 TRUE COPY OF THE COMPUTATION SHEET DATED 29.12.2018 EXHIBIT P4 TRUE COPY OF THE APPEAL DATED 16.1.2019 EXHIBIT P5 TRUE COPY OF THE ORDER DATED 14.3.2019 EXHIBIT P6 TRUE COPY OF THE STAY PETITION DATED 16.3.2019 EXHIBIT P7 TRUE COPY OF THE CHALLAN RECEIPT DATED 26.3.2019 EXHIBIT P8 TRUE COPY OF THE ORDER DATED 26.3.2019 EXHIBIT P9 TRUE COPY OF THE JUDGMENT DATED 27.3.2019 IN WPC 9506/17 EXHIBIT P10 TRUE COPY OF THE ORDER OF STAY ISSUED BY THE 1ST RESPONDENT EXHIBIT P11 TRUE COPY OF THE PETITION FOR EXTENSION OF STAY DATED 26.69.2019 EXHIBIT P12 TRUE COPY OF THE COMMUNICATION DATED 14.2.2020 "