Wp(C)/12293/2014 Of Thrickodithanam Service Co-Operative Bank Ltd v. The Commissioner Of Income Tax (Appeals)-I

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE FRIDAY, THE 16TH DAY OF MAY 2014/26TH VAISAKHA, 1936 WP(C).No. 12293 of 2014 (J) ---------------------------- PETITIONER: -------------------------- THRICKODITHANAM SERVICE CO-OPERATIVE BANK LTD., THRICKODITHANAM P.O, CHANGANACHERRY, KOTTAYAM 688 105, REPRESENTED BY ITS SECRETARY AND AUTHORIZED SIGNATORY, M MR. RAGHUKUMAR M.R. BY ADVS.SRI.A.KUMAR SRI.P.J.ANILKUMAR SMT.G.MINI SRI.P.S.SREEPRASAD RESPONDENTS: ---------------------------- 1. THE COMMISSIONER OF INCOME TAX (APPEALS)-I, AAYAKAR BHAVAN, KOWDIYAR, THIRUVANANTHAPURAM 695 003. AAYAKAR BHAVAN, KOWDIYAR, THIRUVANANTHAPURAM 695 003. 2. THE INCOME TAX OFFICER, WARD NO 4, THIRUVALLA. R1 & R2 BY ADV. SRI.JOSE JOSEPH, SC, INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16-05-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss ------------------------------------------ APPENDIX PETITIONER(S)' EXHIBITS: --------------------------------------- EXHIBIT P1 TRUE COPY OF THE CERTIFICATE ISSUED BY THE JOINT REGISTRAROF CO- OPERATIVE SOCIETIES TO THE PETITIONER DATED 09-12-2011. EXHIBIT P2 TRUE COPY OF THE ASSESSMENT ORDER DATED 22-07-2013 FOR THEASSESSMENT YEAR 2008-09. EXHIBIT P3 TRUE COPY OF THE MEMORANDUM OF APPEAL FILED BY THEPETITIONER DATED 03-09-2013. EXHIBIT P4 TRUE COPY OF THE APPLICATION FOR STAY FILED BY THE PETITIONERDATED 06-09-2013. EXHIBIT P5 TRUE COPY OF THE ASESSMENT ORDER DATED 13-03-2013 FOR THEASSESSMENT YEAR 2010-11. EXHIBIT P6 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 04-04-2013. EXHIBIT P7 TRUE COPY OF THE COMMUNICATION DATED 26-03-2014WITHDRAWING THE ORDER. EXHIBIT P8 TRUE COPY OF THE ASSESSMENT ORDER FOR THE ASSESSMENTYEAR 2011-2012 DATED 20/03/2014. EXHIBIT P9 TRUE COPY OF THE APPEAL MEMORANDUM FOR THE ASSESSMENTYEAR 2011-12 DATED 25-03-2014. EXHIBIT P10 TRUE COPY OF THE STAY PETITION FOR THE ASSESSMENT YEAR2011-12 DATED 25-03-2014. EXHIBIT P11 TRUE COPY OF THE BALANCE SHEET (AUDIT CERTIFICATE AND AUDITMEMORANDUM) FOR THE FINANCIAL YEAR 2012-13 DATED 31-01-2014. RESPONDENT(S)' EXHIBITS: ----------------------------------------- N I L /TRUE COPY/ Kss P.S.TO JUDGE A.MUHAMED MUSTAQUE, J. ~~~~~~~~~~~~~~~~~~~~~~~~~ W.P.(C).No.12293 of 2014 ~~~~~~~~~~~~~~~~~~~~~~~~~Dated this the 16[th ]day of May, 2014 J U D G M E N T The petitioner is a Primary Agricultural Credit Society. They filedappeals against assessment order for the year 2008-2009, 2010-2011 and2011-2012 before first respondent-Commissioner of Income Tax. Thegrievance of the petitioner is that while assessing, the second respondentdisallowed the deduction claimed by the petitioner under Section 80P of theIncome Tax Act, 1961. The petitioner highlights that the business of thepetitioner's society in principal and primarily is to provide financialaccommodation to its members for the purposes connected with agriculturalactivities and, therefore, denial for claim of deduction under 80P of theIncome Tax Act is unsustainable. 2.Heard the learned counsel for the petitioner and the learnedStanding Counsel. 3.The appeals filed by the petitioner are pending before the firstrespondent as Exts.P3, P6 and P9. The petitioner submits that they haveremitted a sum of Rs.19 lakhs towards 50% of the demand raised for theassessment year 2010-11. Therefore, it is prayed that the appeals filed by W.P.(C).No.12293/2014 2.Heard the learned counsel for the petitioner and the learnedStanding Counsel. 3.The appeals filed by the petitioner are pending before the firstrespondent as Exts.P3, P6 and P9. The petitioner submits that they haveremitted a sum of Rs.19 lakhs towards 50% of the demand raised for theassessment year 2010-11. Therefore, it is prayed that the appeals filed by W.P.(C).No.12293/2014 the petitioner for the assessment years 2008-2009, 2010-2011 and2011-2012 may be directed to be disposed of expeditiously and withoutinsisting for any condition for payment of tax in view of the 50% of theamount paid for the assessment year 2010-2011. The learned StandingCounsel opposed the said prayer. It is submitted by the learned StandingCounsel that without making 50% payment of the demand for theassessment years 2008-2009 and 2011-2012, the appeals cannot be taken up. 4.The petitioner is a Primary Agricultural Credit Society. Thepetitioner's submission that any insistance for payment of 50% of thedemand for the assessment years 2008-2009 and 2011-2012 would result instoppage of operation of their Society and it is beyond their capacity tomake such payment. 5.Considering the short question that is involved which iscommon in all these appeals and that the total demand for all threeassessment years would count to Rs.78,53,040/-, I am of the view, thepetitioner should pay 30% of the total demand and taking note of the factthat the petitioner has already paid Rs.19 lakhs, they can be directed to payRs.7 lakhs which would make up 30% of the amount demanded for all the W.P.(C).No.12293/2014 three assessments. In the result, there shall be a direction to disposeExts.P3, P6 and P9 appeals by the first respondent, within a period of threemonths from the date of production of a copy of this judgment before thefirst respondent, on condition that the petitioner remits Rs.7 lakhs altogethertowards assessment years 2008-2009 and 2011-2012. It will be proper forthe respondents to adjust the amounts paid and to be paid by the petitionerin an appropriate manner subject to the final decision in the matter. Tilldisposal of the appeals, all coercive steps pursuant to Ext.P2, P5 and P8 torecover the amount are stayed. It is made clear, on failure to make paymentas above, it is open for the respondents to initiate recovery proceedingsagainst the petitioner. This writ petition is disposed of as above. Sd/- A.MUHAMED MUSTAQUE, JUDGE