Principal Commissioner v. Peroorkaa Service Co-Operative Bank

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH THURSDAY, THE 21 DAY OF SEPTEMBER 2023 / 30TH BHADRA, 1945 WP(C) NO. 30899 OF 2023 PETITIONER: PEROORKADA SERVICE CO-OPERATIVE BANK LTDNO.T.1412, PEROORKADA P.O, THIRUVANANTHAPURAM DISTRICT, KERALA, REPRESENTED BY ITS SECRETARY, PIN – 695 005.BY ADV C.A.JOJO RESPONDENTS: 1THE INCOME TAX OFFICERWARD-2(1), KOWDIAR, TRIVANDRUM, PIN – 695 003.WARD-2(1), KOWDIAR, TRIVANDRUM, PIN – 695 003. 2COMMISSIONER OF INCOME TAX (APPEALS)-1OFFICE OF THE COMMISSIONER OF INCOME TAX (APPEALS), OFFICE OF THE COMMISSIONER OF INCOME TAX (APPEALS), TRIVANDRUM, PIN – 695 003. 3THE COMMISSIONER OF INCOME TAX (APPEALS),NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI-110 001.NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI-110 001. SRI. CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.09.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: DINESH KUMAR SINGH, J. --------------------------------------------------------- W.P.(C). No. 30899 of 2023 --------------------------------------------------------- Dated this the 21[th] day of September, 2023. JUDGMENT The petitioner is a primary Credit Co-operative Society engagedin the business of providing banking services and agricultural credit toits members. The petitioner claims that its income is exempted fromthe payment of income tax under the provisions of Section 80P of theIncome Tax Act, 1961. The assessing authority has completedassessment for the assessment year 2012-2013 and had computed thetotal income at Rs.71,98,44,040/- as against the declared income of‘nil’. A demand notice under Section 156 of the Act, 1961 for anamount of Rs.54,49,31,750/- was issued in pursuance to Exhibit P1assessment order dated 23.02.2023. 2. The petitioner has filed an appeal along with an application to stay the recovery proceedings, before the second respondent and thesame was transferred to the third respondent. The appeal has not yetbeen disposed of. 3. The learned counsel for the petitioner submits that thepetitioner’s case is squarely covered by the decision of this Court in W.P.(C) No. 30899/2023 Principal Commissioner v. Peroorkaa Service Co-operative Bank Ltd., [2022 442 ITR 141 (Ker.)]. It is also submitted that the incomeof the petitioner is nothing but the interest from the deposits made byits members. This Court does not want to go into the merits of thematter. Since the petitioner is facing recovery proceedings pursuantto Exhibit P6 demand notice, it would be appropriate to direct the thirdrespondent to decide the appeal expeditiously. In that view of the matter, the present writ petition is finallydisposed of, with a direction to the third respondent to consider ExhibitP4 appeal filed by the petitioner and pass appropriate orders within aperiod of two months. It is made clear that if the third respondent isnot in a position to decide the appeal within the aforesaid time limit,Exhibit P5 stay petition be considered within the aforesaid limit. sd/- DINESH KUMAR SINGH, JUDGE. Rv W.P.(C) No. 30899/2023 APPENDIX OF WP(C) 30899/2023 RESPONDENTS’ EXHIBITS: NIL True Copy rv PS To Judge.