THE VALANCHERY SERVICE CO-OPERATIVE BANK LTD. NO. M728 V. THE INCOME TAX OFFICER

WP(C)/9582/2020

AI Insights

The case involves the Valanchery Service Co-operative Bank Ltd., which contested an income tax assessment for the year 2017-18. The Income Tax Officer disallowed the bank's claim for deduction under Section 80P of the Income Tax Act, demanding Rs.82,25,653 as tax. The bank appealed against this decision, which was still pending when the recovery proceedings were initiated by the Income Tax Officer. The bank sought relief from the High Court to halt these proceedings until the appeal was resolved.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 769746 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 28-04-2020
• Assessment Year: misc
• Other Referred Cases: W.P. (C) No. 3525/2020, W.P.(C) No. 5027/2020, W.P. (C) No. 9162/2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K P HARISH; JOSE JOSEPH
• Assessee Lawyers: HARISANKAR MENON; MEERA MENON; KRISHNA K
• Keywords: Assessment Year 2017-18; Deduction Disallowance; Income Tax; Recovery proceedings; Stay of Proceedings
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE BECHU KURIAN THOMAS TUESDAY, THE 28TH DAY OF APRIL, 2020/8TH VAISAKHA, 1942 W.P(C) NO.9582 OF 2020 PETITIONER: THE VALANCHERY SERVICE CO-OPERATIVE BANK LTD. NO. M728, VALANCHERY, MALAPPURAM – 676 552, REPRESENTED BY ITS SECRETARY, V. SASIKUMAR. BY ADVS. SRI. HARISANKAR. V. MENON SMT.MEERA. V. MENON SMT.KRISHNA.K. RESPONDENT/RESPONDENTS: 1. THE INCOME TAX OFFICER, WARD 1 & TPS, TARIFF BAZAAR, TOWN HALL ROAD, TIRUR – 676 101. 2. THE INCOME TAX OFFICER (TECH) FOR THE PRINCIPAL COMMISSIONER OF INCOME TAX, AAYKAR BHAVAN, NORTH BLOCK, MANNANCHIRA, KOZHIKODE – 673 001. 3. THE COMMISSIONER OF INCOME TAX (APPEALS), AAYKAR BHAVAN, NORTH BLOCK, MANNANCHIRA, KOZHIKODE – 673 001. BY SRI.K.P.HARISH, GOVT. PLEADER SRI. JOSE JOSEPH, SC THIS WRIT PETITION HAVING COME UP FOR ADMISSION ON 28.04.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 W.P.(C) NO. 9582/2020 JUDGMENT I have heard the counsel for the petitioner through video conferencing. I have also heard the standing counsel for income tax who has taken notice on behalf of respondents. In the nature of the facts and circumstances of the case, this writ petition can be disposed of. 2. Petitioner is an income tax assessee and the issue relates to the assessment year 2017-18. By Ext. P1, the 1st respondent disallowed petitioner’s claim for deduction under Section 80P of the Income Tax Act and demanded an amount of Rs.82,25,653/- as tax. 3. Challenging the said assessment, petitioner has preferred Ext. P2 appeal contending that the reason for disallowing petitioner’s claim for deduction under section 80P is not tenable. While the appeal is pending, the 1st respondent is initiating recovery proceedings to recover the tax allegedly due. While so, Ext. P3 has been issued directing deposit of 20% of the disputed tax as a condition for stay of further proceedings. 3 W.P.(C) NO. 9582/2020 4. I find force in the contention of the counsel for the petitioner that if the respondents proceed with coercive steps pending consideration of the statutory appeal, the same will be rendered redundant and petitioner will be put to severe difficulties especially in the light of the nature of contentions taken up in the appeal. In such circumstances, I direct the 3rd respondent to consider and dispose of Ext.P2 appeal within a period of six months without insisting upon deposit of any portion of the disputed tax. No recovery proceedings shall be initiated for recovering the tax demanded till the disposal of such appeal. Sd/- BECHU KURIAN THOMAS, JUDGE csl 4 W.P.(C) NO. 9582/2020 APPENDIX PETITIONERS EXTS: EXT. P1. COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2017-18. 19-12-2019 EXT. P2. COPY OF THE APPEAL FILED BEFORE THE 3RD RESPONDENT DATED 06-01-2020 EXT. P3. COPY OF ORDER ISSUED BY THE 2ND RESPONDENT. 13-03-2020 EXT. P4.COPY OF RECEIPT ISSUED BY THE STATE BANK OF INDIA, VALANCHERY. 31-03-2020 EXT. P5. COPY OF LETTER SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. 03-04-2020 EXT. P6. COPY OF JUDGMENT OF THIS HON’BLE COURT IN W.P. (C) NO. 3525/2020. 10-02-2020 EXT. P6(A). COPY OF JUDGMENT OF THIS HON’BLE COURT IN W.P.(C) NO. 5027/2020. 25-02-2020 EXT. P6(B). COPY OF JUDGMENT OF THIS HON’BLE COURT IN W.P. (C) NO. 9162/2020. 23-03-2020 "