OCHANTHURUTH SERVICE CO-OPERATIVE BANK V. THE INCOME TAX OFFICER

WP(C)/7478/2020

AI Insights

The case involves Ochanthuruth Service Co-operative Bank, which sought deductions under Section 80P of the Income Tax Act but faced disallowance from the Income Tax Officer for the assessment years 2012-13, 2017-18, and 2018-19. The bank filed NIL returns and statutory appeals against the assessment orders. The Income Tax Officer required a 20% deposit of the disputed amount as a pre-condition for stay, leading to the writ petition. The bank argued that the non-consideration of their stay and rectification applications posed an imminent threat of revenue recovery, which the court found necessitated immediate attention.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 760947 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 11-03-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: AJI DEV; ALAN DEV; SOORAJ ABRAHAM; KIRAN NAIR
• Keywords: Assessment orders; Deductions; Income Tax; Revenue recovery; Stay Application
• Section: 80P; 143(1)(a); 220(6)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL WEDNESDAY, THE 11TH DAY OF MARCH 2020 / 21ST PHALGUNA, 1941 WP(C).No.7478 OF 2020(H) PETITIONER: OCHANTHURUTH SERVICE CO-OPERATIVE BANK OCHANTHURUTH, COCHIN, ERNAKULAM-682508, REPRESENTED BY ITS SECRETARY, SRI.A.S.GOPALAKRISHNAN. BY ADVS. SRI.AJI V.DEV SRI.ALAN PRIYADARSHI DEV SRI.SOORAJ K.ABRAHAM SHRI.KIRAN RAMACHANDRAN NAIR RESPONDENTS: 1 THE INCOME TAX OFFICER NON CORP WARD 2(5), INCOME TAX OFFICER, L.G.TOWERS, THOPPUMPADY, ERNAKULAM-682005. 2 THE COMMISSIONER OF INCOME TAX (APPEALS)-2, KOCHI-682036. 3 ASSISTANT DIRECTOR OF INCOME TAX, CENTRALIZED PROCESSING CENTER, BANGALORE-560500. 4 THE CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110001, REPRESENTED BY ITS CHAIRMAN. OTHER PRESENT: SRI CHRISTOPHER ABRAHAM SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.7478 OF 2020 -2- JUDGMENT Petitioner, the Co-operative Bank situated in Ernakulam District carrying on the primary Agricultural Credits Society claimed deductions under Section 80P of the Income Tax Act and filing NIL returns for the years 2012-13, 2014-15, 2017-18 & 2018-19. However, the 1st respondent passed Exts.P1 & P1(a) assessment orders for the years 2012-13 and 2017-18 disallowing to grant deduction against the petitioner who has filed statutory appeals Exts.P2 & P2(a), but in the meantime the 1st respondent, i.e., the assessing officer, vide communication Ext.P4 in terms of the power under Article 220(6) of the Income Tax Act as well as the Circular of 2017 called upon the petitioner to deposit 20% of the disputed amount as a pre-condition for grant of stay. WP(C).No.7478 OF 2020 -3- 2. Learned counsel appearing on behalf of the petitioner submitted that petitioner is under imminent threat of revenue recovery proceedings for the assessment years 2012-13, 2017-18 & 2018-19. Petitioner has also preferred a rectification application dated 07.02.2020 and the same is still pending consideration. Reliance in this regard has been laid to the screenshot Ext.P8. He submits that predicament of the petitioner is the result of non consideration of the stay application by the appellate authority pertaining to two assessment years i.e., 2012-13 & 2017-18 and non-consideration of rectification application for the assessment year 2018- 19. It is seriously contended that the imminent threat of coercive steps cannot be permitted to be ignored. 3. Learned counsel for the respondent submits that the rectification application against Ext.P6 dated 07.02.2020 is not maintainable as it is a WP(C).No.7478 OF 2020 -4- communication under Section 143(1)(a) and no such assessment. Petitioner is willing to appear before the assessing officer and bring on record material if claiming exemption under Section 80P . 4. Having heard learned counsel for the parties and appraised the paper books, I am of the view that the petitioner cannot be impasse of non- consideration of the stay applications during the pendency of Exts.P2 & P2(a) appeals, which will seriously prejudice the rights of the petitioner on the fact that declining to grant exemption under Section 80P was not justified. Accordingly, Without expressing anything on the merits of the matter, I dispose of this writ petition with a direction to the 2nd respondent to decide the application for stay along with the appeals Exts.P2 & P2(a) within 45 days from the date of receipt of a certified copy of the judgment and take a decision thereon and with a further WP(C).No.7478 OF 2020 -5- direction to the 1st respondent to take a decision on the rectification application Ext.P7 dated 17.02.2020 preferred against the communication dated 07.02.2020, Ext.P6, as expeditiously as possible. Sd/- AMIT RAWAL vv JUDGE WP(C).No.7478 OF 2020 -6- APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER PASSED BY THE 1ST RESPONDENT FOR THE YEAR 2012-13 DATED 12.03.2015. EXHIBIT P1(A) TRUE COPY OF THE ASSESSMENT ORDER PASSED BY THE 1ST RESPONDENT FOR THE YEAR 2017-18 DATED 30.12.2019. EXHIBIT P2 TRUE COPY OF THE STATUTORY APPEAL FILED BY THE PETITIONER AGAINST EXT.P1 ORDER DATED 04.03.2015. EXHIBIT P2(A) TRUE COPY OF THE STATUTORY APPEAL FILED BY THE PETITIONER AGAINST EXT.P1(A) ORDER DATED 29.01.2020. EXHIBIT P3 TRUE COPY OF THE STAY PETITION FILED ALONG WITH THE EXT.P2 APPEAL DATED 08.10.2019. EXHIBIT P3(A) TRUE COPY OF THE STAY PETITION FILED ALONG WITH THE EXT.P2(A) APPEAL DATED 29.01.2020. EXHIBIT P4 A TRUE COPY OF THE INTIMATION FROM THE 1ST RESPONDENT DATED 19.02.2020 DIRECTING THE PETITIONER TO REMIT 20% OF THE AMOUNT DEMANDED FOR CONSIDERATION OF EXT.P3 & P.3(A) STAY PETITIONS IN THIS INSTANT CASE. EXHIBIT P5 A TRUE COPY OF THE NOTICE U/S.221(1) DATED 03.03.2020. EXHIBIT P6 A TRUE COPY OF THE COMMUNICATION U/S.143(1)(A) DATED 07.02.2020. EXHIBIT P7 A TRUE OF THE ACKNOWLEDGMENT OF RECTIFICATION REQUEST GENERATED ONLINE DATED 17.02.2020. WP(C).No.7478 OF 2020 -7- EXHIBIT P8 A TRUE COPY OF THE SCREENSHOT OF THE PORTAL INDICATING THE PENDING STATUS OF THE RECTIFICATION REQUEST AS ON 09.03.2020. //TRUE COPY// PA TO JUDGE "