MANAMBOOR SERVICE CO-OPERATIVE BANK LIMITED V. THE INCOME TAX OFFICER

WP(C)/21380/2019

AI Insights

The case involves the Manamboor Service Co-operative Bank Limited, which challenged the assessment orders and subsequent demands under the Income Tax Act. The petitioner appealed against the orders that required payment of a significant percentage of the disputed tax demand as a condition for stay. The court considered similar precedents and directives, particularly focusing on the deduction under Section 80P of the Income Tax Act. The court's decision aimed to balance the immediate financial burden on the petitioner while ensuring the tax authorities could secure their claims pending the final decision on the appeal.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 754566 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 04-11-2019
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Co-operative Bank Limited v. Commissioner of Income Tax \\u2013 [2019 (2) KHC 287 [FB]]
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM; THOMAS ABRAHAM
• Assessee Lawyers: C A JOJO
• Keywords: Appeal; Assessment Order; Co-operative Bank; Deduction; Income Tax; Stay Application
• Section: 68; 80P; 220(6)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR MONDAY, THE 04TH DAY OF NOVEMBER 2019/13TH KARTHIKA, 1941 W.P(C).No.21380 OF 2019(V) PETITIONER: MANAMBOOR SERVICE CO-OPERATIVE BANK LIMITED NO.2825, REPRESENTED BY ITS SECRETARY SHRI R. SAILENDRAKUMAR, AGED 55 YEARS, MANAMBOOR P.O., THIRUVANANTHAPURAM DISTRICT, KERALA, PIN-695 605. BY ADV. SRI.C.A.JOJO RESPONDENTS: 1 THE INCOME TAX OFFICER WARD-2(2) KOWDIAR, TRIVANDRUM-695 003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS)-1, OFFICE OF THE COMMISSIONER OF INCOME TAX (APPEALS), TRIVANDRUM-695 003. 3 THE PRINCIPAL COMMISSIONER OF INCOME TAX, OFFICE OF THE PRL.COMMISSIONER OF INCOME TAX, TRIVANDRUM-695 003. 4 THE GENERALA MANAGER, TRIVANDRUM DISTRICT CO-OPERATIVE BANK LTD, HEAD OFFICE, TRIVANDRUM-695 001. R1 TO R3 BY CHRISTOPHER ABRAHAM, SC R4 BY SRI.THOMAS ABRAHAM SC THIRUVANANTHAPURAM DIST. CO.OP BANK THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.11.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No.21380/2019 : 2 : J U D G M E N T Against Exts.P1 and P2 assessment orders under the Income Tax Act, the petitioner preferred Ext.P3 appeal before the 2nd respondent. In the stay application preferred along with the appeal, the 2nd respondent passed Ext.P12 order directing the petitioner to pay the demand confirmed against him under Section 68 of the Income Tax Act, as a condition for stay of the demand attributable to the disallowance of deduction under Section 80P of the Income Tax Act. Apparently dissatisfied with the said order of the Appellate Authority, the petitioner approached the Assessing Authority and thereafter the Principal Commissioner by invoking the provisions of Section 220(6) of the Income Tax Act. The said proceedings culminated in Exts.P4 and P7 orders directing the petitioner to pay 20% of the disputed demand within ten days of receipt of the latter order. In the writ petition, the petitioner impugns Exts.P4, P7 and P9 orders inter alia on the contention that, in similar matters, by placing reliance on the decision of this Court in Mavilayi Service Co-operative Bank Limited v. Commissioner of Income Tax – [2019 (2) KHC 287 [FB]], in the context of the deduction claimed under Section 80P of the Income Tax Act, as also the directions W.P.(C).No.21380/2019 : 3 : stated to have been issued by a Division Bench in Writ Appeals, that only 1% of the tax amount confirmed against the assessees under Section 68 of the Income Tax Act, needs to be deposited, pending disposal of the appeals by the First Appellate Authority, the impugned orders ought to be set aside on condition that the petitioner pays 1% of the tax demanded on the additions made under Section 68 of the Income Tax Act, pending disposal of the appeal by the Appellate Authority. 2. I have heard the learned counsel appearing for the petitioner and also the learned Standing Counsel appearing for the Income Tax Department. On a consideration of the facts and circumstances of the case as also the submissions made across the Bar, I dispose the writ petition by directing the 2nd respondent to consider and pass final orders on Ext.P3 appeal pending before him, within an outer time limit of four months from the date of receipt of a copy of this judgment, after hearing the petitioner. It is made clear that till such time as orders are passed by the 2nd respondent in the appeal as directed, and the order communicated to the petitioner, further proceedings including those pursuant to Exts.P4, P7, P9 and P12 communications, for recovery of amounts confirmed against the W.P.(C).No.21380/2019 : 4 : petitioner shall be kept in abeyance on condition that the petitioner pays an amount equivalent to 1% of the tax demanded on the additions made in the assessment order under Section 68 of the Income Tax Act, within one month from today. It is made clear that the attachment over the accounts of the petitioner, as contemplated in Ext.P9 notice, shall stand lifted forthwith on the petitioner depositing the aforementioned 1% amount with the respondents. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE prp/4/11/19 W.P.(C).No.21380/2019 : 5 : APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR AY 2016-17 DATED 24.12.2018 ISSUED BY THE FIRST RESPONDENT EXHIBIT P2 A TRUE COPY OF THE DEMAND NOTICE DATED 24.12.2018 ISSUED BY THE FIRST RESPONDENT EXHIBIT P3 A TRUE COPY OF THE E-FILED APPEAL FOR AY 2016-17 DATED 25.12.2018 FILED BEFORE THE 2ND RESPONDENT EXHIBIT P4 A TRUE COPY OF THE DEMAND NOTICE DATED 12.3.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P5 A TRUE COPY OF THE REVIEW PETITION DATED 15.3.2019 BEFORE THE 3RD RESPONDENT EXHIBIT P6 A TRUE COPY OF THE JUDGMENT IN WPC NO 8197/2019 DATED 18.3.2019 EXHIBIT P7 A TRUE COPY OF THE ORDER ON REVIEW PETITION DATED 16.7.2019 ISSUED BY THE 3RD RESPONDENT EXHIBIT P8 A TRUE COPY OF THE STATUTORY STAY PETITION DATED 25.3.2019 BEFORE THE 1ST RESPONDENT EXHIBIT P9 A TRUE COPY OF THE ACCOUNT FREEZING NOTICE DATED 1.8.2019 ISSUED BY THE 1ST RESPONDENT W.P.(C).No.21380/2019 : 6 : EXHIBIT P10 A TRUE COPY OF THE JUDGMENT IN WPC NO 13851/2019 DATED 17.5.2019 EXHIBIT P11 A TRUE COPY OF THE JUDGMENT IN WA NO 1536/2019 DATED 1.7.2019 EXHIBIT P12 RESPONDENTS EXHIBITS: A TRUE COPY OF THE STAY ORDER DATED 08.03.2019 ISSUED BY THE 2ND RESPONDENT. NIL. //TRUE COPY// P.S. TO JUDGE "