VARAPPUZHA SERVICE CO-OPERATIVE BANK LIMITED V. THE INCOME TAX OFFICER

WP(C)/25874/2019

AI Insights

The case involves Varappuzha Service Co-operative Bank Limited, which challenged several assessment orders issued by the Income Tax Officer, Aluva, under the Income Tax Act. The primary contention in the appeals was the disallowance of deductions under Section 80P of the Income Tax Act. The petitioner sought a direction for the Commissioner of Income Tax (Appeals)-II to expedite the decision on their appeals and to stay the recovery of the amounts assessed. The court referenced a Full Bench decision and a subsequent Division Bench decision, which supported the petitioner's entitlement to a stay of recovery proceedings pending the disposal of the appeals concerning the disallowance of deductions under Section 80P.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 695684 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 30-09-2019
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Co-operative Bank Ltd v. Commissioner of Income Tax, Calicut [2019 (2) KHC 287 (F.B.)]
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: C A JOJO; JACOB CHACKO; MATHEWS JOSEPH
• Keywords: Appeal; Assessment Order; Income Tax; Recovery proceedings; Stay Petition
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR MONDAY, THE 30TH DAY OF SEPTEMBER 2019 / 8TH ASWINA, 1941 WP(C).No.25874 OF 2019(H) PETITIONER: VARAPPUZHA SERVICE CO-OPERATIVE BANK LIMITED NO. 1582, REPRESENTED BY ITS SECRETARY RUXANANA BAI. S, AGED 40 YEARS, W/O. NISHAD, VARAPPUZHA P.O, ERNAKULAM DISTRICT, KOCHI-683 517 BY ADVS. SRI.C.A.JOJO SRI.JACOB CHACKO SRI.MATHEWS JOSEPH RESPONDENTS: 1 THE INCOME TAX OFFICER WARD 3, R S ROAD, ALUVA 683 101. 2 THE COMMISSIONER OF INCOME TAX (APPEALS)-II, OFFICE OF THE COMMISSIONER OF INCOME TAX (APPEALS), 1ST FLOOR, POORNIMA, NEAR MANORAMA JN. KOCHI-682 036 OTHER PRESENT: SRI. JOSE JOSEPH, SC INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30.09.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W .P(C) No.25874/19 :2: JUDGMENT The Writ Petition is against Exts.P1, P4 and P7 assessment orders under the Income Tax Act. The petitioner has preferred Exts.P3, P6 and P9 Appeals along with Exts.P13, P14 and P15 stay petitions before the 2nd respondent. The limited prayer of the petitioner is for a direction to the 2nd respondent to consider and pass orders on Appeals and to keep in abeyance the recovery of amounts confirmed against the petitioner by Exts.P1, P4 and P7 assessment orders in the meanwhile. 2. Heard Sri.C.A.Jojo, the learned counsel for the petitioner and Sri.Jose Joseph, the learned Standing Counsel for the Income Tax Authorities. 3. On a consideration of the facts and circumstances of the case and the submissions made across the Bar, I find from a perusal of the Appeal Memorandum that the issue raised in the Appeals pertains to the disallowance of the deduction under Section 80P of the Income Tax Act. A Full Bench of this Court has in the judgment reported in Mavilayi Service Co-operative Bank Ltd v. Commissioner of Income Tax, Calicut [2019 (2) KHC 287 (F.B.)] decided the issue of entitlement of deduction in favour of the assessee. Following the said decision of the Full Bench, a Division Bench has taken a stand that in pending Appeals before the First Appellate Authority, the assessee, whose tax demand in the assessment orders arises from a disallowance of the deduction under Section 80P of the Income Tax Act, is entitled to a stay of recovery proceedings, pending disposal of the Appeals. 4. Under such circumstances, I dispose this Writ Petition by directing the 2nd respondent to consider and pass orders on Exts.P3, P6 and P9 Appeals W .P(C) No.25874/19 :3: expeditiously and at any rate within an outer time limit of six months from the date of receipt of a copy of this judgment. It is made clear that till such time as orders are passed by the 2nd respondent in the Appeals as directed above, and the order communicated to the assessee, further proceedings for recovery of the amounts confirmed against the petitioner by Exts.P1, P4 and P7 shall be kept in abeyance. The petitioner shall produce a copy of the Writ Petition and the judgment before the 2nd respondent for further action. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE okb //True copy// P.S. to Judge W .P(C) No.25874/19 :4: APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER DATED 01.04.2016 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P2 A TRUE COPY OF THE DEMAND NOTICE DATED 01.04.2016 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P3 A TRUE COPY OF THE APPEAL BEFORE THE 2ND RESPONDENT DATED 05.07.2017. EXHIBIT P4 A TRUE COPY OF THE ASSESSMENT ORDER DATED 01.03.2016 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P5 A TRUE COPY OF THE DEMAND NOTICE DATED 01.03.2016 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P6 A TRUE COPY OF THE APPEAL FOR AY 2013-14 DATED 01.04.2016 FILED BEFORE THE 2ND RESPONDENT. EXHIBIT P7 A TRUE COPY OF THE ASSESSMENT ORDER DATED 19.12.2016 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P8 A TRUE COPY OF THE DEMAND NOTICE DATED 19.12.2016 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P9 A TRUE COPY OF THE APPEAL FOR AY 2014-15 DATD 17.01.2017 FILED BEFORE THE 2ND RESPONDENT. EXHIBIT P10 A TRUE COPY OF THE NOTICE U/S 22191) DATED 18.09.2019 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P11 A TRUE COPY OF THE JUDGMENT IN WA NO. 1536/2019 DATED 01.07.2019. EXHIBIT P12 A TRUE COPY OF THE JUDGMENT IN W.P.(C) NO. 24356/2019 DATED 05.09.2019. EXHIBIT P13 A TRUE COPY OF THE STAY PETITION FILED BY W .P(C) No.25874/19 :5: THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY 2012-13 DTD.28.9.19 EXHIBIT P14 A TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY 2013-14 DTD.1.4.2016 EXHIBIT P15- A TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY 2014-15 DTD.28.9.19 "