THE ARIYUR SERVICE CO-OPERATIVE BANK LTD., V. THE INCOME TAX OFFICER

WP(C)/9157/2020

AI Insights

The case involves The Ariyur Service Co-operative Bank Ltd., which filed writ petitions against the recovery actions initiated by the Income Tax Department for the assessment years 2013-14, 2014-15, and 2015-16. The petitions were filed concurrently with appeals and stay petitions at the Income Tax Appellate Tribunal, which were still pending. The primary legal issue revolves around the interpretation and application of Section 80P of the Income Tax Act, 1961, concerning the tax exemptions for co-operative banks. The court's decision to stay the recovery actions was influenced by the need to await the resolution of these substantive legal questions in the pending appeals.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 692014 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 23-03-2020
• Assessment Year: misc
• Other Referred Cases: Mavilayil Service Co-operative Bank Limited v. Commissioner of Income Tax, Calicut [2019 (2) KHC 287 (FB)]
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: HARISANKAR MENON; MEERA MENON
• Keywords: Appeal; Assessment Year; Income Tax; Recovery; Stay
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN MONDAY, THE 23RD DAY OF MARCH 2020 / 3RD CHAITHRA, 1942 WP(C).No.9153 OF 2020 PETITIONER/S: THE ARIYUR SERVICE CO-OPERATIVE BANK LTD., KOTTOPADAM P.O., MANNARKKAD, PALAKKAD-678583, REPRESENTED BY ITS SECRETARY, N.P.KARTHIAYANI, AGED 49, W/O.CHANDRASEKHARAN, BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD 1, AYAKAR BHAVAN, PALAKKAD-678014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), THRISSUR-680021. 3 THE INCOME TAX APPELLATE TRIBUNAL, AYAKAR BHAVAN, KAKKANADU, KOCHI-682030, REPRESENTED BY ITS REGISTRAR. OTHER PRESENT: R1 & R2 BY SRI.JOSE JOSEPH, SC, IT. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.03.2020, ALONG WITH WP(C).9155/2020, WP(C).9157/2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.9153 of 2020 & - 2 - connected cases IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN MONDAY, THE 23RD DAY OF MARCH 2020 / 3RD CHAITHRA, 1942 WP(C).No.9155 OF 2020 PETITIONER/S: THE ARIYUR SERVICE CO-OPERATIVE BANK LTD., KOTTOPADAM P.O., MANNARKKAD, PALAKKAD-678583, REPRESENTED BY ITS SECRETARY, N.P.KARTHIAYANI, AGED 49, W/O.CHANDRASEKHARAN. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 4, AYAKAR BHAVAN, PALAKKAD-678014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), THRISSUR-680021. 3 THE INCOME TAX APPELLATE TRIBUNAL, AYAKAR BHAVAN, KAKKANADU, KOCHI-682030, REPRESENTED BY ITS REGISTRAR. OTHER PRESENT: R1 & R2 BY SRI.JOSE JOSEPH, SC, IT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.03.2020, ALONG WITH WP(C).9153/2020, WP(C).9157/2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.9153 of 2020 & - 3 - connected cases IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN MONDAY, THE 23RD DAY OF MARCH 2020 / 3RD CHAITHRA, 1942 WP(C).No.9157 OF 2020 PETITIONER/S: THE ARIYUR SERVICE CO-OPERATIVE BANK LTD., KOTTOPADAM P.O., MANNARKKAD, PALAKKAD-678583, REPRESENTED BY ITS SECRETARY, N.P.KARTHIAYANI, AGED 49, W/O.CHANDRASEKHARAN. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 4, AYAKAR BHAVAN, PALAKKAD-678014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), THRISSUR-680021. 3 THE INCOME TAX APPELLATE TRIBUNAL, AYAKAR BHAVAN, KAKKANADU, KOCHI-682030, REPRESENTED BY ITS REGISTRAR. OTHER PRESENT: R1 & R2 BY SRI.JOSE JOSEPH, SC, IT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.03.2020, ALONG WITH WP(C).9153/2020, WP(C).9155/2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.9153 of 2020 & - 4 - connected cases K. Vinod Chandran, J. ------------------------------------- W.P(C) No.9153, 9155 and 9157 of 2020 ------------------------------------- Dated this the 23rd day of March, 2020 JUDGMENT These writ petitions are against the recovery initiated while appeals are pending. The issue is also with respect to the coverage of the petitioner under Section 80P of the Income Tax Act, 1961, which has to be adjudicated on the basis of the Full Bench decision in Mavilayil Service Co - operative Bank Limited v. Commissioner of Income Tax, Calicut [2019 (2) KHC 287 (FB)]. 2. In the present case, the demand is with respect to assessment years 2013-14, 2014-15 and 2015-16. Exhibit P3 second appeal along with Exhibit P4 stay petition in the respective writ petitions are pending before the Tribunal. In the circumstance of the case, I am of the opinion that there shall be a stay of recovery till the appeals are disposed of. The writ petitions are disposed of with the above direction, without any observation on the merits of the matter. Sd/- K.VINOD CHANDRAN JUDGE Vku/- WP(C).No.9153 of 2020 & - 5 - connected cases APPENDIX OF WP(C) 9153/2020 PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE IST RESPONDENT FOR THE YEAR 2013-14 DATED 23.3.2016. EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2013-14 DATED 18.2.2020. EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT 2013-14 DATED 13.3.2020. EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DATED 13.3.2020. WP(C).No.9153 of 2020 & - 6 - connected cases APPENDIX OF WP(C) 9155/2020 PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2014-15 DATED 14.12.2016. EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2014-15 DATED 18.02.2020. EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT 2014-15 DATED 13.03.2020. EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DATED 13.03.2020. WP(C).No.9153 of 2020 & - 7 - connected cases APPENDIX OF WP(C) 9157/2020 PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE IST RESPONDENT FOR THE YEAR 2015-16 DATED 22.12.2017. EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2015-16 DATED 18.2.2020. EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT 2015-16 DATED 13.3.2020. EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DATED 13.3.2020. [TRUE COPY] "