THE MANALUR SERVICE CO-OPERATIVE BANK LTD.NO. 31 V. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/16560/2020

AI Insights

The case involves the Manalur Service Co-operative Bank Ltd., which challenged the assessment orders and demand notices issued by the Income Tax Department. The bank, a registered Primary Agricultural Credit Society, filed writ petitions against these orders, seeking a stay on the recovery actions until their appeals were heard. The respondents, represented by the Standing Counsel, agreed to resolve the appeals within four months but requested a partial deposit of the demanded amounts. The court decided not to delve into the merits of the case, given the pending appeals, and focused on ensuring a timely resolution and staying the recovery actions.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 753323 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 13-08-2020
• Assessment Year: misc
• Other Referred Cases: W.A.NO.1536 OF 2019
• Laws Referred To: Kerala Co-Operative Societies Act and Rules
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: P C SASIDHARAN
• Keywords: Appeal; Assessment Order; Demand notice; Primary Agricultural Credit Society; Recovery
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN THURSDAY, THE 13TH DAY OF AUGUST 2020 / 22ND SRAVANA, 1942 WP(C).No.16560 OF 2020 PETITIONER: THE MANALUR SERVICE CO-OPERATIVE BANK LTD.NO. 31 MANALUR, THRISSUR-680 617, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.P.C.SASIDHARAN RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, S.T.NAGAR, THRISSUR-680 001. 2 THE INCOME TAX OFFICER WARD 2(3), THRISSUR, SHAKTHANTHAMPURAM NAGAR, THRISSUR-680 001. OTHER PRESENT: JOSE JOSEPH S.C FOR I.T THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13.08.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.16560 OF 2020 2 JUDGMENT The Manalur Service Co-operative Bank Ltd., which is a Primary Agricultural Credit Society registered under the provisions of the Kerala Co-Operative Societies Act and Rules, has filed this writ petition impugning Exts.P1 and P4 Assessment Orders and Exts.P2 and P5 Demand Notices, on various grounds. They, however, concede that they have preferred Exts.P3 and P6 appeals before the 1st respondent-Commissioner; and they thus alternatively pray that the said Authority be directed to consider the same within a time frame to be fixed by this Court, further praying that until such time, recovery as per the impugned orders and Demand Notices be stayed. 2. Shri.Jose Joseph, learned Standing Counsel appearing for the respondents, submits that the appeals can be disposed of within a period of four months, but prays that the petitioner be directed to deposit a WP(C).No.16560 OF 2020 3 part of the demand made through Exts.P2 and P5 Demand Notices. 3. When I hear Shri.Jose Joseph as afore, it is obvious that it may not be necessary for this Court to enter into the merits of the allegations and averments in this writ petition, since the statutory appeals are still pending, which the 1st respondent submits can be disposed of within a period of four months. 4. I am, therefore, certainly of the view that this Court will be justified in directing the 1st respondent to do so, however, without allowing any recovery in the meanwhile, since this Court has already granted orders against recovery in similar matters. In the afore circumstances, this writ petition is ordered, directing the 1st respondent to take up Exts.P3 and P6 appeals and to dispose of the same, after affording WP(C).No.16560 OF 2020 4 necessary opportunities of being heard to the petitioner, either personally or through video conferencing subject to the COVID-19 pandemic restrictions, as expeditiously as is possible, but not later than four months from the date of receipt of a copy of the judgment. Needless to say, until such time as the appeals are finally disposed of, all action for recovery of the amounts pursuant to Exts.P2 and P5 notices shall stand deferred and will be subject to the decision to be taken by the Appellate Authority. Sd/- DEVAN RAMACHANDRAN JUDGE MC/17.8.2020 WP(C).No.16560 OF 2020 5 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 5.12.2016 (2009-2010) EXHIBIT P2 TRUE COPY OF THE DEMAND NOTICE DATED 5.12.2016 TO THE MANALUR SERVICE CO.OP.BANK. EXHIBIT P3 TRUE COPY OF THE APPEAL DATED 21.1.2017 TO THE COMMISSIONER OF INCOME TAX. EXHIBIT P4 TRUE COPY OF THE ASSESSMENT ORDER DATED 23.12.2019 (2017-2018). EXHIBIT P5 TRUE COPY OF THE DEMAND NOTICE DATED 23.12.2019 TO THE MANALUR SCB. EXHIBIT P6 TRUE COPY OF THE APPEAL DATED 15.2.2020 TO THE COMMISSIONER OF INCOME TAX. EXHIBIT P7 TRUE COPY OF THE JUDGMENT DATED 1.7.2019 IN W.A.NO.1536 OF 2019. MC (TRUE COPY) PA TO JUDGE "