THE KECHERY SERVICE CO-OPERATIVE BANK LTD. NO.R286, V. THE INCOME TAX OFFICER,

WP(C)/35532/2019

AI Insights

The case involves the Kechery Service Co-operative Bank Ltd., which challenged a conditional stay order imposed by the Commissioner of Income Tax (Appeals) regarding an assessment order under the Income Tax Act. The bank had filed an appeal and a stay petition against the assessment order, which was partially granted conditionally, requiring a 20% deposit of the disputed amount for the stay of recovery. The bank contested this condition, citing similar cases where the court had directed the appellate authority to decide on the appeal without such conditions. The High Court agreed with the petitioner's stance, referencing previous judgments that supported the non-conditional stay of recovery during the appeal process.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 754360 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 20-12-2019
• Assessment Year: misc
• Other Referred Cases: WA NO.1649/2019, WPC NOS.21015 & 20995/2019, WPC NO.22496/2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: HARISANKAR MENON; MEERA MENON
• Keywords: Appeal; Assessment Order; Conditional order of stay; Income Tax; Recovery of Assessed Amount; Stay Petition
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR FRIDAY, THE 20TH DAY OF DECEMBER 2019 / 29TH AGRAHAYANA, 1941 WP(C).No.35532 OF 2019(N) PETITIONER: THE KECHERY SERVICE CO-OPERATIVE BANK LTD. NO.R286, KECHERY P.O., THRISSUR-680 501, REPRESENTED BY ITS SECRETARY, DAVIS.P.A., AGED 44, S/O.P.D.ANTHONY. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD 1 AND TPS, IIND FLOOR, CITY PLAZA, WEST NADA, GURUVAYUR- 680 101. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), SAKTHAN NAGAR, THRISSUR-680 021. BY ADV.SRI.JOSE JOSEPH,SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.12.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C).No.35532 of 2019 2 JUDGMENT Against Ext.P1 assessment order under the Income Tax Act, the petitioner has preferred Ext.P2 appeal together with Ext.P3 stay petition before the 2nd respondent. The 2nd respondent by Ext.P4 order passed a conditional order of stay in the stay application directing the petitioner to deposit 20% of the disputed amount as a condition for grant of stay of recovery of the balance amount pending disposal of the appeal. It is submitted by the learned counsel for the petitioner that the issue involved in the appeal is the deduction allowable under Section 80P of the Income Tax Act, and in similar cases, this Court has directed the Appellate Authority to consider and pass orders in the appeal without insisting on the deposit of any disputed amount as a condition for grant of stay of recovery of the assessed amount pending disposal of the appeal. 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 W.P(C).No.35532 of 2019 3 disposed by quashing Ext.P4 conditional order, and directing the 2nd respondent to consider and pass orders on Ext.P2 appeal within an outer time limit of six months from the date of receipt of a copy of this judgment, after hearing the petitioner. It is made clear that recovery steps for recovery of amounts confirmed against the petitioner by Ext.P1 assessment order shall be kept in abeyance till such time as orders are passed by the 2nd 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 2nd respondent, for further action. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE mns W.P(C).No.35532 of 2019 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2010-11 DATED 19.11.2018. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR TYE YEAR 2010-11 DATED 29.12.2018. EXHIBIT P3 COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2010-11 DATED 29.12.2018. EXHIBIT P4 COPY OF ORDER ISSUED BY THE 2ND RESPONDENT DATED 09.12.2019 EXHIBIT P5 COPY OF JUDGMENT IN WA NO.1649/2019 OF THIS HON'BLE COURT DATED 19.07.2019. EXHIBIT P6 COPY OF JUDGMENT IN WPC NOS.21015 & 20995/2019 OF THIS HON'BLE COURT DATED 19.08.2019 EXHIBIT P6 A COPY OF JUDGMENT IN WPC NO.22496/2019 OF THIS HON'BLE COURT DATED 19.08.2019. RESPONDENTS EXHIBITS:NIL //TRUE COPY// P.A TO JUDGE "