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

WP(C)/34700/2019

AI Insights

The case involves the Aryanad Service Co-operative Bank Ltd., which contested a rectification order under the Income Tax Act concerning the disallowance of a deduction claimed under Section 80P. The bank had previously appealed against an assessment order and received a favorable decision, which was later rectified, leading to the current dispute. The bank filed an appeal and several petitions (including for delay condonation and stay) with the Income Tax Appellate Tribunal, Cochin Bench. However, recovery actions were initiated against the bank before the Tribunal could consider the stay petition. The High Court's intervention was sought to halt these recovery actions pending the Tribunal's decision on the appeal.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 754368 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 18-12-2019
• Assessment Year: misc
• Other Referred Cases: WPC NO. 27295 OF 2019
• 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
• Keywords: Deduction Disallowance; Delay condonation; Income Tax; Recovery Steps; Rectification Order; Section 80P; Stay Petition
• Section: 143(3); 250; 154; 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR WEDNESDAY, THE 18TH DAY OF DECEMBER 2019/27TH AGRAHAYANA, 1941 W.P(C).No.34700 OF 2019(J) PETITIONER: THE ARYANAD SERVICE CO-OPERATIVE BANK LTD. AGED 48 YEARS BANK BUILDING, ARYANAD POST, ARYANAD, TRIVANDRUM 695 542. REPRESENTED BY ITS SECRETARY ARUNGHOSH.S. BY ADVS.SRI.S.ARUN RAJ SMT.C.T.SUJA RESPONDENTS: 1 INCOME TAX OFFICER WARD 2 (3), AAYAKAR BHAWAN, 1ST FLOOR, KAWDIAR P.O. TRIVANDRUM 605 003. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, AAYAKR BHAVAN, KOWDIAR, TRIVANDRUM 695 003. 3 INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, KENDRIYA BHAVAN, KAKKANAD, ERNAKULAM 682 037. BY SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.12.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No.34700/2019 :: 2 :: J U D G M E N T Against Ext.P3 rectification order under the Income Tax Act, the petitioner has preferred Ext.P4 appeal together with Ext.P5 delay condonation petition as also Ext.P6 stay petition before the 3rd 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.P3 rectification 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 W.P.(C).No.34700/2019 :: 3 :: 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. Taking note of the fact that delay occassioned in filing the appeal before the 3rd respondent is only 20 days, I deem it appropriate to condone the delay, and dispose this Writ petition with a direction to the 3rd respondent to consider and pass orders on Ext.P4 appeal within an outer time limit of six months from the date of receipt of a copy of this judgment. Recovery steps for recovery of amounts confirmed against the petitioner by Ext.P3 rectification order 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/18/12/19 W.P.(C).No.34700/2019 :: 4 :: APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 27/12/2016 PASSED BY THE 1ST RESPONDENT UNDER SECTION 143 (3) OF THE CT FOR THE AY 2014-15. EXHIBIT P2 TRUE COPY OF THE ORDER DATED 5.3.2019 PASSED BY THE COMMISSIONER OF THE INCOME TAX (APPEALS), TRIVANDRUM UNDER SECTION 250 OF THE ACT ALLOWING THE APPEAL OF THE PETITIONER FOR THE AY 2014-15. EXHIBIT P3 TRUE COPY OF THE ORDER DATED 3.9.2019 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS), TRIVANDRUM U/S. 154 R.W.S. 250 OF THE ACT FOR THE AY 2014-15. EXHIBIT P4 TRUE COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH FOR THE AY 2014-15. EXHIBIT P5 TRUE COPY OF THE DELAY CON DONATION PETITION DELAY OF 20 DAYS FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT. EXHIBIT P6 TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT FOR THE AY 2014-15 EXHIBIT P7 RESPONDENTS EXHIBITS: TRUE COPY OF THE JUDGMENT DATED 4.12.2019 PASSED BY THIS HONOURABLE COURT IN WPC NO. 27295 OF 2019 IN THE CASE OF PACS PERTAINING TO DIS ALLOWANCE UNDER SECTION 80 P. NIL. //TRUE COPY// P.S. TO JUDGE W.P.(C).No.34700/2019 :: 5 :: "