VARKALA SERVICE CO-OPERATIVE BANK LTD.NO.161, V. THE INCOME TAX OFFICER

WP(C)/32075/2019

AI Insights

The case involves Varkala Service Co-operative Bank Ltd., which filed a writ petition against the Income Tax Officer and other respondents concerning the recovery of amounts confirmed by a rectified order under the Income Tax Act. The dispute centered on the disallowance of a deduction claimed under Section 80P of the Income Tax Act. The petitioner had already filed an appeal and a stay petition with the Income Tax Appellate Tribunal, Cochin Bench, but recovery actions were initiated by the respondents before the stay petition was considered. The court's decision was influenced by precedents where similar matters were handled, leading to the stay of recovery actions pending the appeal's resolution.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 695361 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 27-11-2019
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: T R HARIKUMAR; ARJUN RAGHAVAN
• Keywords: Deduction Disallowance; Income Tax; Recovery Steps; Section 80P; Stay Petition
• Section: 154; 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR WEDNESDAY, THE 27TH DAY OF NOVEMBER 2019/6TH AGRAHAYANA, 1941 W.P(C).No.32075 OF 2019(H) PETITIONER: VARKALA SERVICE CO-OPERATIVE BANK LTD.NO.161, REPRESENTED BY ITS SECRETARY-IN -CHARGE,VARKALA P.O., CHIRAYINKEEZHU, THIRUVANANTHAPURAM DISTRICT-695 141 BY ADVS.SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENTS: 1 THE INCOME TAX OFFICER WARD 2(5), OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, KAWDIAR P.O., THIRUVANANTHAPURAM,PIN-695 003 2 THE COMMISSIONER OF INCOME TAX(APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTPAPURAM, PIN-695 003 3 THE REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, KENDRIYA BHAVAN, BLOCK NO.C1 AND C2, 1ST FLOOR, KAKKANAD, COCHIN-682 030 BY SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.11.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No.32075/2019 :: 2 :: J U D G M E N T Against Ext.P3 rectified order under the Income Tax Act, the petitioner has preferred Ext.P4 appeal together with Ext.P5 stay petition before the 3rd respondent. It is the case of the petitioner that even prior to considering the stay petition, recovery steps are taken by the respondents against the petitioner for recovery of the amounts confirmed by Ext.P3 rectified order. It is stated by the learned counsel for the petitioner that the issue involved in the appeal pertains to dis-allowance of deduction claimed under Section 80P of the Income Tax Act. 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 W.P.(C).No.32075/2019 :: 3 :: 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 directing the 3rd respondent to consider and pass orders on Ext.P4 appeal within an outer time limit of six months. Recovery steps for recovery of amounts confirmed against the petitioner by Ext.P3 rectified order, shall be kept in abeyance till such time as orders are passed by the 3rd 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 3rd respondent, for further action. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE prp/27/11/19 W.P.(C).No.32075/2019 :: 4 :: APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2015-2016 DATED 07.12.2017 EXHIBIT P2 A TRUE COPY OF THE ORDER DATED 18.12.2018 IN ITA NO.175/EF/TVM/CIT(A)/TVM/2017-18 OF THE 2ND RESPONDENT EXHIBIT P3 A TRUE COPY OF THE ORDER DATED 03.09.2019 IN ITA NO.175/EF/TVM/CIT(A)/TVM/2017-18, ISSUED BY THE 2ND RESPONDENT UNDER SECTION 154 OF THE INCOME TAX ACT EXHIBIT P4 A TRUE COPY OF HE APPEAL MEMORANDUM ALONG WITH AFFIDAVIT DATED 11.1.12019 AND CHELAN EXHIBIT P5 RESPONDENTS EXHIBITS: A TRUE COPY OF THE STAY PETITION FILED ALONG WITH EXT-P4 APPEAL DATED 11.11.2019. NIL. //TRUE COPY// P.S. TO JUDGE "