THE ARUVIKKARA FARMERS SERVICE CO-OPERATIVE BANK LTD. NO. 603 V. THE INCOME TAX OFFICER

WP(C)/31787/2019

AI Insights

The case involves the Aruvikkara Farmers Service Co-operative Bank Ltd., which challenged the revised assessment order under the Income Tax Act, specifically concerning the disallowance of a deduction claimed under Section 80P. The bank filed an appeal and stay petitions with the Commissioner of Income Tax (Appeals), but recovery actions were initiated against them before the stay petitions were considered. The court's decision was influenced by precedents where similar matters were handled, emphasizing the need for the appellate authority to address the appeal promptly and stay the recovery process during the appeal's pendency.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 695413 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 25-11-2019
• Assessment Year: misc
• Other Referred Cases: WA NO 1437 OF 2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: T R HARIKUMAR; ARJUN RAGHAVAN
• Keywords: Appeal; Assessment Order; Income Tax; Recovery Steps; Stay Petition
• Section: 154; 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR MONDAY, THE 25TH DAY OF NOVEMBER 2019 / 4TH AGRAHAYANA, 1941 WP(C).No.31787 OF 2019(W) PETITIONER: THE ARUVIKKARA FARMERS SERVICE CO-OPERATIVE BANK LTD. NO. 603 REPRESENTED BY ITS MANAGING DIRECTOR, ARUVIKKARA P.O.THIRUVANANTHAPURAM DISTRICT-695 564. BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENTS: 1 THE INCOME TAX OFFICER WARD-2(3), OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX, RANGE-2, AAYAKAR BHAVAN, KOWDIAR P.O.THIRUVANANTHAPURAM DISTRICT-695 003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM DISTRICT- 695 003. 3 THE THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK LTD, REPRESENTED BY ITS GENERAL MANAGER, HEAD OFFICE, EAST FORT, THIRUVANANTHAPURAM-695 023. OTHER PRESENT: SC CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.11.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.31787 OF 2019 2 JUDGMENT Against Ext.P2 revised assessment order under the Income Tax Act, the petitioner has preferred Ext.P3 appeal together with Exts.P4 and P9 stay petitions before the 2nd 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.P2 revised assessment 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 2nd respondent to consider and pass orders on Ext.P3 appeal within an outer time limit of six months. Recovery steps for recovery of amounts confirmed against the petitioner by Ext.P2 revised assessment order including further steps pursuant to Ext.P7 shall be kept in abeyance till such time as orders are passed by the 2nd respondent as directed above and communicated to the petitioner. It is made that during the time when the WP(C).No.31787 OF 2019 3 stay granted by this Court is in operation, the petitioner will be free to operate the bank account mentioned in Ext.P7. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE SJ WP(C).No.31787 OF 2019 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE JUDGMENT DATED 2.8.2018 IN WA NO 1437 OF 2018 EXHIBIT P2 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2013-2014 DATED 9.3.2019, ISSUED UNDER SECTION 154 OF THE INCOME TAX ACT EXHIBIT P3 A TRUE COPY OF THE ONLINE APPEAL DATED 19.3.2019 FILED BEFORE THE 2ND RESPONDENT EXHIBIT P4 A TRUE COPY OF THE STAY PETITION DATED 1.5.2019 FILED IN EXT P3 APPEAL EXHIBIT P5 A TRUE COPY OF THE COMMUNICATION DATED 8.11.2019 ISSUED BY THE 2ND RESPONDENT EXHIBIT P6 A TRUE COPY OF THE COMMUNICATION DATED 13.11.2019 ISSUED BY THE 2ND RESPONDENT EXHIBIT P7 A TRUE COPY OF THE COMMUNICATION ISSUED BY THE 1ST RESPONDENT DATED 15.11.2019 EXHIBIT P8 A TRUE COPY OF THE APPEAL ALONG WITH GROUNDS OF APPEAL FILED BEFORE THE 2ND RESPONDENT DATED 21.11.2019 WITH ACKNOWLEDGMENT EXHIBIT P9 A TRUE COPY OF THE STAY PETITION FILED IN EXT-P8 APPEAL DATED 21.11.2019 "