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

WP(C)/27295/2019

AI Insights

The case involves the Porora Service Co-operative Bank, which challenged the assessment orders issued by the Income Tax Officer and the subsequent actions taken for recovery of the disputed amounts. The bank had filed appeals against the assessment orders and a stay application, which were pending before the Commissioner of Income Tax (Appeals). The primary legal issue was the disallowance of deduction claimed under Section 80P of the Income Tax Act. The court's decision was influenced by precedents where similar matters led to a stay of recovery pending the disposal of appeals.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 770916 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 04-12-2019
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: S RAJ; C T SUJA; ARJUN RAJ
• Keywords: Appeal; Assessment Order; Deduction Disallowance; Income Tax; Recovery Steps; Stay Application
• Section: 143(3); 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR WEDNESDAY, THE 04TH DAY OF DECEMBER 2019/13TH AGRAHAYANA, 1941 W.P(C).No.27295 OF 2019(J) PETITIONER: THE PORORA SERVICE CO-OPERATIVE BANK C-8, MARUTHAYI, PORORA.P.O, KANNUR-670702 REPRESENTED BY ITS SECRETARY M.K.VANAJA BY ADVS.SRI.S.ARUN RAJ SMT.C.T.SUJA SRI.ARJUN S.RAJ RESPONDENTS: 1 THE INCOME TAX OFFICER WARD-3, KANNUR RANGE, KANNUR-670006 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, KOZHIKODE-673001 3 THE COMMISSIONER OF INCOME TAX(APPEALS) AAYAKAR BHAVAN, MANACHIRA, KOZHIKODE-673001 BY SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 04.12.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No.27295/2019 :: 2 :: J U D G M E N T Against Exts.P1 and P3 assessment orders under the Income Tax Act, the petitioner has preferred Exts.P2 and P4 appeals before the 3rd respondent. Ext.P5 is the stay application filed by the petitioner before the said respondent for both the assessment years. It is the case of the petitioner that even prior to considering the stay application, recovery steps are taken by the respondents against the petitioner for recovery of the amounts confirmed by Exts.P1 and P3 assessment orders. It is further 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 W.P.(C).No.27295/2019 :: 3 :: 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 Exts.P2 and P4 appeals 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 for recovery of amounts confirmed against the petitioner by Exts.P1 and P3 assessment orders shall be kept in abeyance till such time 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 prp/4/12/19 W.P.(C).No.27295/2019 :: 4 :: APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 25.12.2017 PASSED BY THE 1ST RESPONDENT UNDER SECTION 143(3) OF THE ACT FOR THE AY 2015-16 EXHIBIT P2 TRUE COPY OF THE FIRST APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT FOR THE AY 2015-16 EXHIBIT P3 TRUE COPY OF THE ASSESSMENT ORDER DATED 24.12.2018 PASSED UNDER SECTION 143(3) FOR THE AY 2016-17 EXHIBIT P4 TRUE COPY OF THE FIRST APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT FOR THE AY 2016-17 EXHIBIT P5 TRUE COPY OF THE APPLICATION OF STAY FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT FOR THE AY 2015-16 AND 2016-17 [SUBSTITUTED] EXHIBIT P5 RESPONDENTS EXHIBITS: TRUE COPY OF THE STAY APPLICATIONS FILED BEFORE THE 3RD RESPONDENT, COMMISSIONER OF INCOME TAX, (APPEALS) FOR THE AY'S 2015-16 AND 2016-17 [SUBSTITUTED AS PER ORDER DATED 4.12.2019 IN I.A.NO.1/2019]. NIL. //TRUE COPY// P.S. TO JUDGE "