KUNDAYAM SERVICE CO-OPERATIVE BANK LTD. NO.3259 V. THE INCOME TAX OFFICER

WP(C)/39825/2022

AI Insights

The case involves Kundayam Service Co-operative Bank Ltd., which filed a writ petition under Article 226 of the Constitution of India against the Income Tax Officer and other respondents concerning the recovery of tax demands based on the assessment order for the year 2017-2018. The petitioner, a Primary Agricultural Credit Society, had declared nil income for the assessment year 2017-2018 but was later served with notices under Sections 143(2) and 142(1) of the Income Tax Act, contesting their eligibility for deductions under Section 80P. After a partly favorable first appeal, the petitioner sought a stay on recovery proceedings pending the outcome of their second appeal and stay petition before the Tribunal. The court found merit in the petitioner's request for a stay on the recovery proceedings until the Tribunal's decision on the stay petition.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 769001 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 09-12-2022
• Assessment Year: misc
• Other Referred Cases: W.A No.1639 of 2019, WP(C) No.22397 of 2022
• Laws Referred To: Income Tax Act, Kerala Co-operative Societies Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM; JOSE JOSEPH
• Assessee Lawyers: ARJUN HARIKUMAR
• Keywords: Assessment Order; Income Tax; Recovery proceedings; Stay Petition; Writ of Mandamus
• Section: 142(1); 143(2); 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K. BABU FRIDAY, THE 9TH DAY OF DECEMBER 2022 / 18TH AGRAHAYANA, 1944 WP(C) NO. 39825 OF 2022 PETITIONER: KUNDAYAM SERVICE CO-OPERATIVE BANK LTD. NO.3259 REPRESENTED BY ITS SECRETARY, KUNDAYAM P.O, PATHANAPURAM, KOLLAM DISTRICT. PIN – 689695 BY ADVS. ARJUN RAGHAVAN T.R.HARIKUMAR RESPONDENTS: 1 THE INCOME TAX OFFICER WARD-4, OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX, KOLLAM RANGE, AAYAKAR BHAVAN, NEAR KARBALA JUNCTION, KOLLAM. PIN – 691001 2 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, NORTH BLOCK, DELHI, PIN – 110001 3 THE REGISTRAR, INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, KENDRIYA BHAVAN, BLOCK NO.C1 & C2, 1ST FLOOR, KAKKANAD, COCHIN. PIN – 682030 BY ADVs SRI. CHRISTOPHER ABRAHAM SRI. JOSE JOSEPH,SC FOR INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.12.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.39825 of 2022 2 K.BABU, J. ------------------------------------------- W.P .(Crl) No.39825 of 2022 --------------------------------------------- Dated this the 9th day of December , 2022 JUDGMENT The prayers in this Writ Petition filed under Article 226 of the Constitution of India are as follows:- “(i) to issue a writ of mandamus or any other writ, order or direction, directing the 1st respondent not to proceed with recovery of the demand based on the assessment order for the year 2017-2018, till Ext.P4 stay petition disposed of by 3rd respondent Tribunal; (ii) to issue a writ of mandamus or any other writ, order or direction, directing the 1st respondent not to proceed with recovery of the demand based on the assessment order for the year 2017-2018, till Ext.P3 appeal disposed of by 3rd respondent Tribunal; and (iii) to grant such other relief’s as this Honourable Court may deem fit in the circumstances of this case.” 2. Heard both sides. 3. The petitioner is a Primary Agricultural Credit Society Registered as per the provisions of the Kerala Co-operative Societies Act. The petitioner had filed its return of income for the assessment year 2017-2018, declaring nil income. Later, the petitioner was served with a notice under Section 143(2) of W.P.(C) No.39825 of 2022 3 the Income T ax Act, followed by a notice under Section 142 (1) on the premise that the petitioner is not eligible for the deduction under 80P of the Income T ax Act. 4. The petitioner preferred first appeal before the 2nd respondent which was allowed partly. Later, the petitioner had preferred second appeal (Ext.P3). The petitioner also prayed for the stay of the recovery proceedings as per Ext.P4 application. 5. Now, the petitioner has prayed for giving direction to the 1st respondent not to proceed with the recovery of the demand based on the assessment of the 2017-2018 till the disposed of Ext.P4. Having regard to the nature of challenges raised by the petitioner, this Court feels that the reliefs prayed for can be granted. Therefore, first respondent is directed not to proceed with the recovery of the demand based on the assessment order of the year 2017-2018 till Ext.P4 application is disposed of by the third respondent. The Writ Petition (Civil) is disposed of accordingly. K.BABU JUDGE VPK W.P.(C) No.39825 of 2022 4 APPENDIX OF WP(C) 39825/2022 PETITIONER EXHIBITS Exhibit-P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 2017-2018 DATED 30- 11-2019 Exhibit-P2 A TRUE COPY OF THE ORDER DATED 19-09-2022 ISSUED BY THE 2ND RESPONDENT Exhibit-P3 A TRUE COPY OF THE APPEAL MEMORANDUM DATED 28-11-2022 ALONG WITH AFFIDAVIT AND CHELAN, FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT TRIBUNAL Exhibit-P4 A TRUE COPY OF THE STAY PETITION FILED IN EXT-P3 APPEAL, DATED 28-11-2022 Exhibit-P5 A TRUE COPY OF THE JUDGMENT DATED 19-07- 2019 IN W.A NO.1639 OF 2019 OF THIS HON'BLE COURT Exhibit-P6 A TRUE COPY OF THE JUDGMENT DATED 11-07- 2022 IN WP(C) NO.22397 OF 2022 OF THIS HON'BLE COURT "