Wa/720/2020 Of The Puthenchira Service Co-Operative Bank Ltd v. The Income Tax Officer

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR.JUSTICE BASANT BALAJI TUESDAY, THE 18 DAY OF OCTOBER 2022 / 26TH ASWINA, 1944 WA NO. 720 OF 2020 AGAINST THE JUDGMENT IN WP(C) 8516/2020 OF HIGH COURT OF KERALA APPELLANT: THE PUTHENCHIRA SERVICE CO-OPERATIVE BANK LTD NO. 2264,PUTHENCHIRA, MALA, THRISSUR-680 682, REPRESENTED BY ITS SECRETARY. BY ADV P.C.SASIDHARAN RESPONDENTS: 1 THE INCOME TAX OFFICER WARD 2(4), THRISSUR, OFFICE OF THE INCOME TAX OFFICER, SHAKTHANTHAMPURAN NAGAR, THRISSUR-680 001. WARD 2(4), THRISSUR, OFFICE OF THE INCOME TAX OFFICER, SHAKTHANTHAMPURAN NAGAR, THRISSUR-680 001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, S.T.NAGAR, THRISSUR-680 001. AAYAKAR BHAVAN, S.T.NAGAR, THRISSUR-680 001. 3 THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, ERNAKULAM-682 037. COCHIN BENCH, ERNAKULAM-682 037. BY ADVS. SRI.P.K.RAVINDRANATHA MENON (SR.) SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 18.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: JUDGMENT The writ petitioner is the appellant. The appellant filed the writ petition for the following prayers: (i)To issue a writ of certiorari, or other appropriate writ, order, or direction to quash Exhibit P6. order, or direction to quash Exhibit P6. (ii)To declare that the procedure adopted by the Recovery Officer to recover the tax is highly arbitrary, illegal and violative of the statutory mandate contained in Section 336(3) of the Income Tax Act. Officer to recover the tax is highly arbitrary, illegal and violative of the statutory mandate contained in Section 336(3) of the Income Tax Act. (iii)To forebear and interdict the respondents from encashing the Demand Draft No.560213 dated 13/3/2020 for an amount of Rs. 36,83,875/- and Demand Draft No. 560714 dated 13/3/2020 for an amount of Rs. 7,88,73,094/- drawn and kept in the Puthenchira Branch of the Kerala State Co-operative Bank. encashing the Demand Draft No.560213 dated 13/3/2020 for an amount of Rs. 36,83,875/- and Demand Draft No. 560714 dated 13/3/2020 for an amount of Rs. 7,88,73,094/- drawn and kept in the Puthenchira Branch of the Kerala State Co-operative Bank. (iv)Issue a writ of mandamus or other appropriate writ order or direction commanding and compelling the respondents not to proceed with any recovery proceedings pursuant to Ext.P2 and P3 till the Exts. P8 to P8(h) and P9 to P9(h) are considered and appropriate orders are passed therein. or direction commanding and compelling the respondents not to proceed with any recovery proceedings pursuant to Ext.P2 and P3 till the Exts. P8 to P8(h) and P9 to P9(h) are considered and appropriate orders are passed therein. (v) to issue such other writ, order or direction as this Honourable Court may deem fit and proper in the case. Honourable Court may deem fit and proper in the case. 2. The subject matter of the writ petition relates to the disputes between the appellant and the respondents herein concerning the income tax returns filed by the appellant for the assessment years 2008-09, 2009-10, 2010-11, 2012-13, 2013-14, 2014-15, 2015-16, 2016-17, 2017-18. The appellant filed tax appeal before the Income Tax Appellate Tribunal aggrieved by the order of assessment and appellate order of the Commissioner of Income Tax (Appeals), Thrissur. The appellant in obedience to the condition imposed by this Court for staying the recovery proceedings deposited a portion of tax demanded for the subject assessment years. 3. During the pendency of the appeal, it is stated by the learned counsel Mr. P.C Sasidharan appearing for the appellant that the appeal filed by the appellant before the Tribunal, is allowed in favour of the appellant/assessee and the deduction available under Section 80P of the Income Tax Act has been extended. assessment years 2008-09, 2009-10, 2010-11, 2012-13, 2013-14, 2014-15, 2015-16, 2016-17, 2017-18. The appellant filed tax appeal before the Income Tax Appellate Tribunal aggrieved by the order of assessment and appellate order of the Commissioner of Income Tax (Appeals), Thrissur. The appellant in obedience to the condition imposed by this Court for staying the recovery proceedings deposited a portion of tax demanded for the subject assessment years. 3. During the pendency of the appeal, it is stated by the learned counsel Mr. P.C Sasidharan appearing for the appellant that the appeal filed by the appellant before the Tribunal, is allowed in favour of the appellant/assessee and the deduction available under Section 80P of the Income Tax Act has been extended. 4. The cause in the appeal does not survive in view of the final adjudication of the tax appeal filed by the appellant before the Tribunal. Therefore, the tax paid or deposited against the demand raised by any of the orders by this Court, if required, is refunded to the appellant/assessee. 5. We place on record the subsequent developments taking place in the matter and dispose of the appeal by directing the jurisdictional Assessing Officer/respondents, to refund the amount paid or deposited towards tax dues by the appellant. The appellant is given liberty to represent for refund of the tax amount deposited by enclosing a copy of the judgment and orders are passed in accordance with law on refund and eligible interest in this behalf. Writ Appeal is disposed of as indicated above. S.V.BHATTI JUDGE BASANT BALAJI JUDGE APPENDIX OF WA 720/2020 PETITIONER ANNEXURES ANNEXURE A1 TRUE COPY OF THE ORDER OF THE INCOME TAX APPELLATE TRIBUNAL DATED 06.10.2020 ANNEXURE A2: TRUE COPY OF THE STATEMENT. RESPONDENT ANNEXURES ANNEXURE A: TRUE COPY OF THE PANCHNAMA PREPARED ON 13.3.2020. ANNEXURE B: TRUE COPY OF THE MINUTES OF THE MEETING HELD ON 16.03.2020.