Wp(C)/13998/2020 Of Kadungalloor Service Co-Operative Bank Ltd v. The Income Tax Officer

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR FRIDAY, THE 10TH DAY OF JULY 2020 / 19TH ASHADHA, 1942 WP(C).No.13998 OF 2020(Y) PETITIONER: KADUNGALLOOR SERVICE CO-OPERATIVE BANK LTD.NO.863WEST KADUNGALLOOR P.O, ALUVAERNAKULAM DISTRICT, PIN-683110REPRESENTED BY ITS SECRETARY SRI.NIKHIL S.L BY ADVS.SRI.K.S.HARIHARAN NAIRSMT.G.REMADEVISMT.HARIMA HARIHARANSHRI.RAJATH R NATHSRI.K.S.HARIHARAN NAIR RESPONDENTS: 1.THE INCOME TAX OFFICER, WARD 2, K.A.P COMMERCIAL COMPLEX, R.S ROAD, ALUVA, PIN-683101THE COMMISSIONER OF INCOME TAX(APPEALS),2. G-51, PARAPILLIY LN, MANORAMA JUNCTION, GIRI NAGRPANAMPILLY NAGAR, KOCHI, KERALA-682036 BY ADV.SRI.CHRISTOPHER ABRAHAM,SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON10.07.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: JUDGMENT Against Ext.P1 assessment order under the Income Tax Act, thepetitioner has preferred Ext.P2 appeal and Ext.P3 stay petition beforethe 2[nd] respondent. The limited prayer in the Writ Petition is for adirection to the 2[nd] respondent to consider and pass orders on theappeal, expeditiously, after hearing the petitioner and to keep inabeyance recovery steps pursuant to Ext.P1 assessment order in themeanwhile. 2. I have heard the learned counsel appearing for the petitionerand also the learned Standing counsel appearing for the respondents. On a consideration of the facts and circumstances of the case asalso the submissions made across the Bar, I find that the issue underconsideration in the appeal is the permissibility of the deduction underSection 80P of the Income Tax Act in the case of Co-operative societies.Inasmuch as this Court has, in connected cases, granted a stay ofrecovery till such time as appeals are decided by the appellate authority,I dispose the Writ Petition by directing the 2[nd] respondent to considerand pass orders on Ext.P2 appeal within an outer time limit of six monthsfrom the date of receipt of a copy of this judgment, after hearing thepetitioner. It is made clear that recovery steps for recovery of amountsconfirmed against the petitioner by Ext.P1 assessment order shall bekept in abeyance till such time as orders are passed by the 2[nd] respondent in the appeal, and the order communicated to the petitioner.The petitioner shall produce a copy of the writ petition together with acopy of this judgment, before the 2[nd] respondent, for further action. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE W.P.(C).No.13998 of 2020 APPENDIX PETITIONERS EXHIBITS EXHIBIT -P1 COPY OF ASSESSMENT ORDER DATED 29.12.2019 ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2017-18. EXHIBIT P2- COPY OF APPEAL MEMORANDUM DATED 24.01.2020 AGAINST EXT.P1 EXHIBIT P3- COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORETHE 2ND RESPONDENT DATED 04.06.2020