VAKATHANAM SERVICE CO-OPERATIVE BANK LTD. V. INCOME TAX OFFICER

WP(C)/29776/2019

AI Insights

The case involves the Vakathanam Service Co-operative Bank Ltd., which contested the issuance of a demand notice for tax assessments under the Income Tax Act for the years 2013-14 and 2015-16. The bank had previously appealed against the assessment orders and filed a stay petition, which was still pending. The court found that the demand for tax based on the 2015-16 assessment was inappropriate while the stay petition was under consideration and that the demand for the 2013-14 assessment should not have been raised at all.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 754562 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 06-11-2019
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: ANIL NAIR; R SREEJITH; ARYA; GOKULRAJ; SRI HARINI
• Keywords: Appeal; Assessment Order; Demand notice; Income Tax; Stay Petition
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR WEDNESDAY, THE 06TH DAY OF NOVEMBER 2019/15TH KARTHIKA, 1941 W.P(C).No.29776 OF 2019(V) PETITIONER: VAKATHANAM SERVICE CO-OPERATIVE BANK LTD. NJALIANKUZHI, VAKATHANAM, KERALA 686011, REPRESENTED BY IT S SECRETARY, MERCYAMMA JOSEPH. BY ADVS.SRI.ANIL D. NAIR SRI.R.SREEJITH SMT. ARYA ANIL SHRI.GOKULRAJ L. SMT.SRI HARINI S.P. RESPONDENTS: 1 INCOME TAX OFFICER WARD -3 , THIRUVALLA - 689 101 2 THE COMMISSIONER OF INCOME TAX (APPEALS) KOTTAYAM - 686 001 BY SRI.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.11.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No.29776/2019 : 2 : J U D G M E N T On receipt of Exts.P1 and P2 assessment orders under the Income Tax Act, for the years 2013-14 and 2015-16, the petitioner has preferred Ext.P4 appeal and Ext.P5 stay petition against Ext.P2 assessment order before the 2nd respondent. In respect of Ext.P1 assessment order, the proceedings culminated in Ext.P3 order of the 1st appellate authority, in favour of the petitioner.Although the department has preferred a further appeal before the Appellate Tribunal, no orders have been passed by the said forum till date. Notwithstanding the aforementioned facts, Ext.P6 demand notice was issued demanding tax that was confirmed against the petitioner by Exts.P1 and P2 assessment orders. The case of the petitioner is essentially that, while the demand pertaining to Ext.P1 assessment order could not have been raised at all, the demand pertaining to Ext.P2 assessment order ought not to have been pursued pending consideration of the stay petition by the 2nd respondent. 2. I have heard the learned counsel for the petitioner as also W.P.(C).No.29776/2019 : 3 : the learned Standing Counsel for the respondents. On a consideration of the facts and circumstances of the case as also the submissions made across the bar, I dispose the writ petition with a direction to the 2nd respondent to consider and pass orders on Ext.P5 stay petition within a period of two months from the date of receipt of a copy of this judgment, after hearing the petitioner. Recovery steps, pursuant to Ext.P6 demand notice, shall be kept in abeyance till such time as orders are passed by the 2nd respondent, as directed, and the orders 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. The respondents may consider issuing revised demand notices pursuant to the findings of the appellate authorities in the appeals before them. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE prp/6/11/19 W.P.(C).No.29776/2019 : 4 : APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 29.03.2016 FOR THE A.Y.2013-14. EXHIBIT P2 TRUE COPY OF THE ASSESSMENT ORDER DATED 16.11.2017 ISSUED BY THE FIRST RESPONDENT FOR THE A.Y. 2015-16. EXHIBIT P3 TRUE COPY OF THE TRIBUNAL ORDER DATED 29.08.2018 FOR THE A.Y 2013-14 EXHIBIT P4 TRUE COPY OF THE STATUTORY APPEAL FILED BEFORE THE SECOND RESPONDENT FOR THE A.Y 2015-16 EXHIBIT P5 TRUE COPY OF THE STAY PETITION FOR THE YEAR 2015-16 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P6 RESPONDENTS EXHIBITS: TRUE COPY OF THE DEMAND NOTICE DATED FOR A.Y 2013-14 AND 2015-16 ISSUED BY THE FIRST RESPONDENT. NIL. //TRUE COPY// P.S. TO JUDGE "