THE MALA BLOCK TOWN CO-OPERATIVE BANK LTD., V. THE COMMISSIONER OF INCOME TAX (APPEALS),

WP(C)/7475/2020

AI Insights

The case involves the Mala Block Town Co-operative Bank Ltd., which sought judicial intervention to expedite the decision on its appeal regarding income tax deductions claimed under Section 80P(4) of the Income Tax Act, 1961. The bank had its income tax return for the financial year 2017-18 assessed, resulting in a demand for tax which the bank contested. The initial appeal was met with a condition to deposit 20% of the demanded tax, later reduced to 10% in a review petition. The bank's inability to comply with this condition led to the filing of the writ petition, seeking relief from the High Court.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 753792 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 11-03-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Kerala Co-operative Societies Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: O D SIVADAS
• Keywords: Agricultural credit co-operative society; Deduction claim; Income Tax Return; Review petition; Statutory Appeal; Stay of recovery
• Section: 143(3); 80P(4); 220(6)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL WEDNESDAY, THE 11TH DAY OF MARCH 2020 / 21ST PHALGUNA, 1941 WP(C).No.7475 OF 2020(H) PETITIONER: THE MALA BLOCK TOWN CO-OPERATIVE BANK LTD., NO.R 1086, ALOOR P.O., THRISSUR DISTRICT, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN, SHAKTAN NAGAR, THRISSUR, PIN - 680 001. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, SHAKTAN NAGAR, THRISSUR, PIN - 680 001. 3 THE INCOME TAX OFFICER, WARD 2(3), SHAKTAN NAGAR, THRISSUR, PIN - 680 001. SRI. JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.7475/2020 2 JUDGMENT The petitioner has approached this Court seeking directions of this Court for quashing Exts.P4 and P6 and issuance of writ in the nature of mandamus directing the first respondent to consider and decide Ext.P2 appeal on merits. 2. Being an Agricultural Credit Co-operative Society registered under the Kerala Co-operative Societies Act, the petitioner duly furnished income tax return for the financial year 2017-18 and claimed the benefit under Section 80P(4) of the Income Tax Act, 1961. On initiation of the proceedings under Section 143(3) of the Act, the assessing officer found the total income of the petitioner Society for the relevant year as Rs.3,21,69,250/-. Accordingly, the assessing authority issued Ext.P1 order dated 25.2.2019, declining the claim for deduction as W.P.(C) No.7475/2020 3 sought under Section 80P(2) of the Income Tax Act and demanded tax for Rs.1,50,25,014/-. The petitioner Society preferred Ext.P2 statutory appeal on 23.1.2020. During the pendency of the appeal, the petitioner also preferred Ext.P3 application under Section 220(6) of the Act before the second respondent. The said application has been disposed of vide Ext.P4 order dated 30.1.2020 staying further recovery on deposit of 20% of the demanded tax. Ext.P5 Review Petition dated 7.2.2020 also result into dismissal vide order dated 19.2.2020. 3. The learned counsel appearing on behalf of the petitioner submits that in the review petition, the amount of 20% of the demanded tax has been reduced to 10%. But, the petitioner is not in a position to deposit 10% and the same not sustainable. The petitioner has good point within the parameters of Section 80P , claiming exemption for payment of the tax and it would be satisfied in case an appropriate direction is issued for deciding the appeal W.P.(C) No.7475/2020 4 within a reasonable time. 4. Mr.Jose Joseph, the learned Standing Counsel appearing for the respondents, submits that the petitioner has not bonafidely approached this Court. In order to circumvent the order of deposit of 10% of the demanded tax, the petitioner prays for disposal of the appeal. The petitioner Society is claiming exemption, after obtaining an order on either way, and approached this Court with similar directions. 5. Having heard the learned counsel for the parties and appraised the paper book, I am in agreement with the submission of the learned Standing Counsel that the order of imposition of the condition of 20% of the demanded tax reduced to 10% has not been complied with by the petitioner. The petitioner has approached this Court for disposal of the appeal. Though many appeals are pending and no special circumstances have been made out to take up the appeal out of turn, I am not entertaining this Writ W.P.(C) No.7475/2020 5 Petition. However, in order to prevent miscarriage of justice, I deem it appropriate to dispose of the appeal. Accordingly, this Writ Petition is disposed of directing the first respondent to decide Ext.P2 appeal as expeditiously as possible, within a period of two months. In case the petitioner deposits 10% of the amount, there shall be an interim stay of all further proceedings pursuant to Ext.P1 till the disposal of the appeal. Sd/- AMIT RAWAL JUDGE csl W.P.(C) No.7475/2020 6 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 25/12/2019 ISSUED BY THE 3RD RESPONDENT FOR THE ASSESSMENT YEAR 2017-18. EXHIBIT P2 TRUE COPY OF THE APPEAL DATED 23/01/2020 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2017-18. EXHIBIT P3 TRUE COPY OF THE APPLICATION DATED 27/01/2020 OR STAY FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT FOR STAYING ORDER FOR THE ASSESSMENT YEAR 2017-18. EXHIBIT P4 TRUE COPY OF THE PROCEEDING DATED 31/01/2020 ISSUED BY THE 3RD RESPONDENT WITH RESPECT TO THE ASSESSMENT YEAR 2017-18. EXHIBIT P5 TRUE COPY OF THE REVIEW PETITION DATED 07/02/2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT WITH RESPECT TO THE ASSESSMENT YEAR 2017-18. EXHIBIT P6 TRUE COPY OF THE PROCEEDING DATED 19/02/2020 ISSUED BY THE 2ND RESPONDENT WITH RESPECT TO THE ASSESSMENT YEAR 2017-18. "