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

WP(C)/33182/2019

AI Insights

The case involves the Nagaripuram 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 issued for the financial year 2013-14. The appellate authority's conditional stay required the bank to deposit 20% of the disputed amount to stay the recovery of the remaining balance pending the appeal's disposal. The bank contested this condition, citing similar cases where the court had directed the appellate authority to consider appeals without such deposit conditions. The High Court agreed with the bank's position, referencing similar precedents, and quashed the conditional stay order.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 763105 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 06-12-2019
• Assessment Year: misc
• Other Referred Cases: W.A.NO.1646/2019, 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; Stay Petition; Recovery of Assessed Amount
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR FRIDAY, THE 06TH DAY OF DECEMBER 2019 / 15TH AGRAHAYANA, 1941 WP(C).No.33182 OF 2019(W) PETITIONER/S: THE NAGARIPURAM SERVICE CO-OPERATIVE BANK LTD. NAGARIPURAM, MANNUR, PALAKKAD-678 642, REPRESENTED BY ITS SECRETARY, GEETHA K. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 2, AYAKAR BHAVAN, PALAKKAD-678 014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) SAKTHAN NAGAR, THRISSUR-680 021. SRI. JOSE JOSEPH; SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.12.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.33182 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 disposed by quashing Ext.P4 conditional order, and directing the 2nd respondent to consider and WP(C).No.33182 OF 2019 3 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 SJ WP(C).No.33182 OF 2019 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE IST RESPONDENT FOR THE YEAR 2013-14 DATED 21.3.2016. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2013-14 DATED 11.4.2016. EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2013-14 DATED 11.4.2016. EXHIBIT P4 COPY OF ORDER ISSUED BY THE 2ND RESPONDENT DATED 7.11.2019. EXHIBIT P5 COPY OF JUDGMENT IN W.A.NO.1646/2019 OF THIS HON'BLE COURT DATED 19.7.2019. EXHIBIT P6 COPY OF JUDGMENT IN WPC NOS.21015 & 20995/2019 OF THIS HON'BLE COURT DATED 19.8.2019. EXHIBIT P6 A COPY OF JUDGMENT IN WPC NO.22496/2019 OF THIS HON'BLE COURT DATED 19.8.2019. "