NAVAIKULAM SERVICE CO-OPERATIVE BANK V. THE DEPUTY COMMISSIONER

WP(C)/20977/2018

AI Insights

The case involves the NavaiKulam Service Co-operative Bank Limited, which filed a writ petition against the Income Tax authorities challenging the demand for a pre-deposit of 50% of the disputed tax for their appeals concerning the Assessment Years 2014-2015 and 2015-2016. The petitioner argued that as a primary Co-operative Society, they were exempt from such a demand. The Income Tax Department contended that no exemption applied. The court referenced a prior judgment (W.P.(C) No.9125 of 2018) and decided to resolve the matter by requiring the petitioner to pay 20% of the disputed tax in installments, allowing the appeal to be heard on its merits.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 726913 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 27-06-2018
• Assessment Year: misc
• Other Referred Cases: W.P.(C) No.9125 of 2018
• Laws Referred To: Income Tax Act, 1969
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: C A JOJO; JACOB CHACKO; MATHEWS JOSEPH
• Keywords: Assessment Order; Co-operative Society; Demand notice; Income Tax; Pre-deposit; Writ petition
• Section: 80-P(2)(a)(i)

Judgement Text

" IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU WEDNESDAY, THE 27TH DAY OF JUNE 2018 / 6TH ASHADHA, 1940 WP(C).No. 20977 of 2018 PETITIONER NAVAIKULAM SERVICE CO-OPERATIVE BANK LIMITED, NO.964 REPRESENTED BY ITS SECRETARY BINDU S, W/O.ANILKUMAR N, AGED 47 YEARS, NAVAIKULAM.P.O., THIRUVANANTHAPURAM DISTRICT, KERALA, PIN-695 603. BY ADVS.SRI.C.A.JOJO SRI.JACOB CHACKO SRI.MATHEWS JOSEPH RESPONDENTS: 1. THE DEPUTY COMMISSIONER OF INCOME TAX INCOME TAX OFFICER, RANGE 2, KOWDIAR, TRIVANDRUM-695 003. 2. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-2(1), KOWDIAR, TRIVANDRUM-695 003. 3. COMMISSIONER OF INCOME TAX (APPEALS)-1 OFFICE OF THE COMMISSIONER OF INCOME TAX(APPEALS), TRIVANDRUM-695 003. 4. THE PRINCIPAL COMMISSIONER OF INCOME TAX THIRUVANANTHAPURAM-695 003. BY SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27-06-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 20977 of 2018 (V) APPENDIX PETITIONER(S)' EXHIBITS EXHIBIT P1 A COPY OF THE CERTIFICATE IN THIS REGARD ISSUED BY THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES(GENERAL) THIRUVANANTHAPURAM DATED 25.11.2015. EXHIBIT P2 A TRUE COPY OF THE ASSESSMENT ORDER DATED 29.12.2016 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 A TRUE COPY OF THE DEMAND NOTICE DATED 29.13.2016 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P4 A TRUE COPY OF THE ASSESSMENT ORDER DATED 29.12.2017 ISSUED BY THE SECOND RESPONDENT. EXHIBIT P5 A TRUE COPY OF THE DEMAND NOTICE DATED 29.12.2017 ISSUED BY THE SECOND RESPONDENT. EXHIBIT P6 A TRUE COPY OF THE E-FILED APPEAL FOR AY 2014-15 DATED 30.01.2017 FILED BEFORE THE THIRD RESPONDENT. EXHIBIT P7 A TRUE COPY OF THE E-FILED APPEAL FOR AY 2015-16 DATED 31.01.2018 FILED BEFORE THE THIRD RESPONDENT. EXHIBIT P8 A TRUE COPY OF THE ORDER OF THE ORDER ITA NO.271 & 399/EF/TVM/CIT(A),TVM/2016-17 & 2017-18 DATED 20.04.2018 ISSUED BY THE 3RD RESPONDENT. EXHIBIT P9 A TRUE COPY OF THE REVIEW PETITION BEFORE THE 4TH RESPONDENT DATED 30.04.2018. EXHIBIT P10 A TRUE COPY OF THE LETTER NO.701/CIT-TVPM/STAY/6/2018-19 DATED 11.06.2018. EXHIBIT P11 A TRUE COPY OF THE LETTER NO.AAAAN6970B/CIRCULAR-2(1)/TVM/2017-18 DATED 25.04.2018. jjj DAMA SESHADRI NAIDU, J. ------------------------------------------ W.P.(C) No. 20977 of 2018 (V) ------------------------------------------ Dated: 27th June 2018 J U D G M E N T The petitioner, a primary Co-operative Society, filed its returns for the Assessment Years 2014-2015 and 2015-2016 claiming deduction under Section 80(P)(2)(a)(i) of the Income Tax Act, 1969. Nevertheless, the Revenue issued assessment orders demanding tax from the petitioner. Aggrieved the petitioner filed Exts.P6 and P7 statutory appeals before the 3rd respondent. As statute demands, the 3rd respondent required the petitioner to pay 50% of the disputed tax as a pre-deposit. Then, further aggrieved, the petitioner has filed this writ petition. 2. The learned Counsel for the petitioner singularly contends that the petitioner being a primary Co-operative W.P.(C) No.20977/2018 2 Society has been entirely exempted. Therefore the demand on the 3rd respondent's part that the petitioner should make the pre-deposit cannot be sustained. 3. The learned Standing Counsel, on the other hand, has submitted that the petitioner cannot claim any exception or exemption from paying the pre-deposit. At any rate, he has brought to my notice this Court's judgment dated 22nd May, 2018 in W.P.(C) No.9125 of 2018. 4. Both the learned Counsel have consensually submitted that this writ petition may be disposed of in accordance with the directions given in the judgment in W.P.(C) No.9125 of 2018. 5. I therefore dispose of this writ petition observing as follows: The petitioner will pay 20% of the demand in six equal monthly instalments commencing from 01.07.2018. The W.P.(C) No.20977/2018 3 appellate authority will dispose of the appeal preferred by the petitioner on merits as expeditiously as possible. Sd/- DAMA SESHADRI NAIDU JUDGE jjj 27/06/2018 "