Dated This The 12[Th] Day Of March, 2020 v. Commissioner Of Income Tax, Calicut

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE V.G.ARUN THURSDAY, THE 12TH DAY OF MARCH 2020 / 22ND PHALGUNA, 1941 WP(C).No.7549 OF 2020(P) PETITIONER/S: THE GOVERNMENT SERVANTS CO-OPERATIVE SOCIETY LTD.A-245,KAYAMKULAM, KATHIKAPPILLY, ALAPPUZHA, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENT/S: 1THE COMMISSIONER OF INCOME TAX (APPEALS),AYAKAR BHAVAN, KOTTAYAM, PIN-686001.2THE INCOME TAX OFFICER,WARD NO.5, ALAPPUZHA, PIN-688011. OTHER PRESENT: SC JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FORADMISSION ON 12.03.2020, THE COURT ON THE SAME DAYDELIVERED THE FOLLOWING: Dated this the 12[th] day of March, 2020 JUDGMENT The petitioner, a Co-operative Credit Society,is aggrieved by the condition of payment of 20% ofthe tax assessed, imposed under Ext.P4, pendingconsideration of Ext.P2 appeal filed againstExt.P1 assessment order. It is submitted thatpursuant to Ext.P4; alleging non-compliance of thedirection in Ext.P4, the account of the petitionerhas been frozen and the Society is not in aposition to continue its activities. The issueregarding imposition of the condition ofremittance of 20% of the tax demanded wasconsidered and decided by the Division Bench ofthis Court and as per the judgment in W.A.No. 1529of 2019 and connected cases. After taking noteof the peculiar aspects involved and the decision-of the Full Bench in Mavilayi Service CooperativeBank Ltd. v. Commissioner of Income Tax, Calicut [2019 (2) KHC 287], the Division Bench held theinsistence for payment of proportion of the demandas a condition for grant of stay to be bad. In such circumstances, the demand forremittance of 20% of the tax assessed pendingconsideration of the appeals, cannot be sustained. The writ petition is thereforedisposed of, directing the first respondent toconsider Ext.P2 appeal filed by the petitionerwithin a period of three months from the date ofreceipt of a copy of this judgment. In themeanwhile, all coercive steps based on Ext.P4shall be kept in abeyance. The order freezing thepetitioner's account shall be lifted forthwith andthe petitioner permitted to operate its accounts. Scl/12.03.2020 sd/- V.G.ARUN JUDGE W.P.(C) No.7549 of 2020 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1COPY OF THE ASSESSMENT ORDER DATED 23.12.2019 ISSUED BY THE 2ND RESPONDENTFOR THE PERIOD 2017-18. EXHIBIT P2COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2017-18 DATED 16.1.2020.EXHIBIT P3COPY OF THE STAY PETITION DATED 16.1.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT AGAINST EXT.P1 ORDER. EXHIBIT P4COPY OF THE ORDER DATED 3.2.2020 ISSUEDBY THE 2ND RESPONDENT. W.P.(C) No.7549 of 2020 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1COPY OF THE ASSESSMENT ORDER DATED 23.12.2019 ISSUED BY THE 2ND RESPONDENTFOR THE PERIOD 2017-18. EXHIBIT P2COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2017-18 DATED 16.1.2020. EXHIBIT P3COPY OF THE STAY PETITION DATED 16.1.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT AGAINST EXT.P1 ORDER. EXHIBIT P4COPY OF THE ORDER DATED 3.2.2020 ISSUEDBY THE 2ND RESPONDENT. W.P.(C) No.7549 of 2020