VENJARAMOOD SERVICE CO-OPERATIVE BANK LTD NO.2419 V. THE INCOME TAX OFFICER, WARD-2 (3)

WP(C)/14906/2018

AI Insights

The case involves Venjaramood Service Co-operative Bank Ltd, which filed a writ petition against the Income Tax Officer and the Commissioner of Income Tax (Appeals) concerning the taxation of unexplained cash credits under Section 68 of the Income Tax Act. The High Court of Kerala at Ernakulam, referencing a similar case (W.P. (C).No.9125 of 2018), decided to dispose of the petition by modifying the previous orders to allow the bank to pay 20% of the tax demand in installments. The court also noted that the petitioners should be given an opportunity to explain the nature and source of the cash credits during the appellate proceedings.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 697498 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 29-05-2018
• Assessment Year: misc
• Other Referred Cases: WP(C).No.9125 of 2018, WP(C).No.38566 of 2017, WP(C).No.6915 of 2018, ITA No.171/EF/TVM/CIT(A), TVM/2018 - 2018, ITA.NO.361/COCH/2016, ITA.NO.159/PN/09
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: V G ARUN; T R HARIKUMAR; JAIBY PAUL; ARJUN RAGHAVAN; ADITHYA RAJEEV
• Keywords: Income Tax; Unexplained cash credits; Kerala Co-operative Societies Act, 1969
• Section: 68

Judgement Text

" IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE P.B.SURESH KUMAR TUESDAY, THE 29TH DAY OF MAY 2018 / 8TH JYAISHTA, 1940 WP(C).No. 14906 of 2018 PETITIONER(S) VENJARAMOOD SERVICE CO-OPERATIVE BANK LTD NO.2419, REPRESENTED BY ITS SECRETARY, VENJARAMOODU P.O, THIRUVANANTHAPURAM DISTRICT-695 607 BY ADVS.SRI.V.G.ARUN SRI.T.R.HARIKUMAR SRI.JAIBY PAUL SRI.ARJUN RAGHAVAN SRI.ADITHYA RAJEEV RESPONDENT(S): 1. THE INCOME TAX OFFICER, WARD-2 (3), OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX, RANGE-2, AAYAKAR BHAVAN, KOSDIAR P.O, THIRUVANANTHAPURAM DISTRICT-695 003. 2. THE COMMISSIONER OF INCOME TAX(APPELS) AAYAKAR BHAVAN, KOSDIAR, THIRUVANANTHAPURAM-695 003. BY SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29-05-2018, ALONG WITH WP(C).No.15070 of 2018 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 14906 of 2018 (K) APPENDIX PETITIONER(S)' EXHIBITS EXT.P1: A TRUE COPY OF THE CERTIFICATE DATED 17/10/2016, ISSUED BY THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), THIRUVANANTHAPURAM EXT.P2: TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2011 - 2012 DATED 18/12/2017. EXT.P3: A TRUE COPY OF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 18/12/2017. EXT.P4: A TRUE COPY OF THE NOTICE NO.AAAAV3571C/ITO/W-2(3)/TVM/2017-18 DATED 09/02/2018. EXT.P5: A TRUE COPY OF THE JUDGMENT DATED 21/12/2017 IN WP(C).NO.38566 OF 2017. EXT.P6: A TRUE COPY OF THE JUDGMENT DATED 01/03/2018 IN WP(C).NO.6915 OF 2018. EXT.P7: A TRUE COPY OF THE ORDER DATED 24/04/2018 IN ITA NO.171/EF/TVM/CIT(A), TVM/2018 - 2018. EXT.P8: A TRUE COPY OF THE RELEVANT PAGES OF THE AUDIT MEMORANDUM FOR THE YEAR 2010-2011. EXT.P9: A TRUE COPY OF THE ORDER DATED 18/11/2016 IN ITA.NO.361/COCH/2016. EXT.P10: A TRUE COPY OF THE ORDER DATED 28/02/2011 IN ITA.NO.159/PN/09. EXT.P11: A TRUE COPY OF THE NOTICE NO.AAAAV3571C/ITO/W-2(3)/TVM/2018/2019 DATED 24/04/2018. // true copy // Sd/- PS TO JUDGE Kvs/- P.B.SURESH KUMAR, J. = = = = = = = = = = = = = = W.P.(C).Nos.14906, 15070 & 15221 of 2018. = = = = = = = = = = = = = = Dated this the 29th day of May, 2018 J U D G M E NT A writ petition preferred on identical facts and grounds by a similarly placed primary agricultural credit society registered under the Kerala Co-operative Societies Act, 1969 has been disposed of by this Court in terms of the judgment in W.P. (C).No.9125 of 2018. In the light of the said judgment, these writ petitions are also disposed of modifying the impugned orders directing the petitioners to pay 20% of the demand in six equal monthly instalments in tune with the judgment in W.P. (C).No.9125 of 2018. The first instalment shall be paid by the petitioner within two weeks from the date of receipt of a copy of this judgment. 2. The learned counsel for the petitioners submits that the petitioners prepared to offer explanation as regards the WPC.No.14906 of 2018 & con.cases. 2 nature and source of the cash credits in their books which were brought to tax as unexplained cash credits under Section 68 of the Income Tax Act, if an opportunity is given. This is a matter for the appellate authority to consider at the time of disposal of the appeals and I do not find any reason for the appellate authority to decline such a request, if made, at the time of hearing. The writ petitions are disposed of as above. Sd/- P.B.SURESH KUMAR, JUDGE. Kvs/- // true copy // "