M/S NADAKKAL SERVICE CO-OPERATIVE BANK LTD. V. INCOME TAX OFFICER,

WP(C)/33130/2019

AI Insights

The case involves M/s Nadakkal Service Co-operative Bank Ltd., which filed a writ petition against the Income Tax Officer, Ward-4, Kollam, and other respondents concerning a rectification order under the Income Tax Act. The petitioner had appealed against the rectification order (Ext.P4) and filed a stay petition (Ext.P6) which was not considered before the recovery steps were initiated by the respondents. The main legal issue was the disallowance of a deduction claimed under Section 80P of the Income Tax Act. The court, referencing similar cases, decided to stay the recovery of disputed amounts and directed the appellate authority to expedite the hearing of the appeal.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 758520 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 05-12-2019
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: C A JOJO; JACOB CHACKO; MATHEWS JOSEPH; SWATHY
• Keywords: Dis-allowance of deduction; Income Tax; Recovery Steps; Rectification Order; Stay Petition
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR THURSDAY, THE 05TH DAY OF DECEMBER 2019 / 14TH AGRAHAYANA, 1941 WP(C).No.33130 OF 2019(M) PETITIONER M/S NADAKKAL SERVICE CO-OPERATIVE BANK LTD. KALLUVATHUKKAL.P.O., KOLLAM-691578, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SRI.JACOB CHACKO SRI.MATHEWS JOSEPH SMT.SWATHY S. RESPONDENTS 1 INCOME TAX OFFICER, WARD-4, KOLLAM, AYAKAR BHAVAN, KOLLAM-691001. 2 COMMISSIONER OF INCOME TAX(APPEALS)-I, OFFICE OF THE COMMISSIONER OF INCOME TAX (APPEALS), TRIVANDRUM-695003. 3 THE ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, KENDRIYA BHAVAN, KAKKANAD, ERNAKULAM-682037. OTHER PRESENT: SC: CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.12.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).33130/2019 2 JUDGMENT Against Ext.P4 rectification order under the Income Tax Act, the petitioner has preferred Ext.P5 appeal together with 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.P4 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 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, this Writ petition is disposed directing the 3rd respondent to consider and pass orders on Ext.P5 appeal within an outer time limit of six months from the date of receipt of a copy of this judgment, after hearing the petitioner. Recovery steps, pursuant to Ext.P7 demand notice, shall be kept in abeyance till such time W.P.(C).33130/2019 3 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 Mrcs/5.12. W.P.(C).33130/2019 4 APPENDIX EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER AY 2010-11 DATED 12.12.2017 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 A TRUE COPY OF THE DEMAND NOTICE FOR AN AMOUNT OF RS.52,90,360/- U/S.156 DATED 12.11.2017 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 A TRUE COPY OF THE APPELLATE ORDER BEFORE THE 2ND RESPONDENT DATED 24.1.2019 FILED FOR AY 2015-16. EXHIBIT P4 A TRUE COPY OF THE RECTIFICATION ORDER OF THE 2ND RESPONDENT DATED 3.9.2019. EXHIBIT P5 A TRUE COPY OF THE APPEAL BEFORE THE 3RD RESPONDENT DATED 14.11.2019 FOR AY 2010-11. EXHIBIT P6 A TRUE COPY OF THE STAY PETITION BEFORE THE 3RD RESPONDENT DATED 21.11.2019 FOR AY 2010-11. EXHIBIT P7 A TRUE COPY OF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 3.11.2019. TRUE COPY "