Wp(C)/25786/2016 Of M/S. Chavakkad Service Co-Operative Bank v. Income Tax Officer

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE MONDAY, THE 8TH DAY OF AUGUST 2016/17TH SRAVANA, 1938 WP(C).No. 25786 of 2016 (W) ---------------------------- PETITIONER(S): ------------- M/S. CHAVAKKAD SERVICE CO-OPERATIVE BANK LTD. BEACH ROAD, P.O.CHAVAKKAD, THRISSUR-680 506, REPRESENTED BY SECRETARY. BY ADVS.SRI.ANIL D. NAIR SRI.R.SREEJITH KUM.SOUMYA PRAKASH KUM.MEKHALA M.BENNY RESPONDENT(S): -------------- 1. INCOME TAX OFFICER WARD-1, GURUVAYUR. WARD-1, GURUVAYUR. 2. THE COMMISSIONER OF INCOME TAX (APPEALS) THRISSUR-680 001. BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08-08-2016,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: bp WP(C).No. 25786 of 2016 (W) ---------------------------- APPENDIX PETITIONER(S)' EXHIBITS----------------------- EXHIBIT P1: COPY OF THE ASSESSMENT ORDER DATED 22.2.2016 FOR THE YEAR 2008-09 ISSUED TO THE PETITIONER BY THE FIRST RESPONDENT.FOR THE YEAR 2008-09 ISSUED TO THE PETITIONER BY THE FIRST RESPONDENT. EXHIBIT P2: COPY OF THE ASSESSMENT ORDER DATED 17.3.2016 FOR THE YEAR 2013-14 ISSUED TO THE PETITIONER BY THE FIRST RESPONDENT.FOR THE YEAR 2013-14 ISSUED TO THE PETITIONER BY THE FIRST RESPONDENT. EXHIBIT P3: COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2008-09.BEFORE THE 2ND RESPONDENT FOR THE YEAR 2008-09. EXHIBIT P4: COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2013-14.BEFORE THE 2ND RESPONDENT FOR THE YEAR 2013-14. EXHIBIT P5: COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE YEAR 2008-09.BEFORE THE 1ST RESPONDENT FOR THE YEAR 2008-09. EXHIBIT P6: COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE YEAR 2013-14.PETITIONER BEFORE THE 1ST RESPONDENT FOR THE YEAR 2013-14. EXHIBIT P7: COPY OF THE ORDER DATED 8.7.2016 FOR THE YEAR 2008-09 ISSUED TO THE PETITIONER BY THE FIRST RESPONDENT.2008-09 ISSUED TO THE PETITIONER BY THE FIRST RESPONDENT. EXHIBIT P8: COPY OF THE ORDER DATED 8.7.2016 FOR THE YEAR 2013-14 ISSUED TO THE PETITIONER BY THE FIRST RESPONDENT.2013-14 ISSUED TO THE PETITIONER BY THE FIRST RESPONDENT. EXHIBIT P9: COPY OF THE ORDER DATED 20.7.2016 IN ITA NO.525/COCH/2014 OF THE INCOME TAX APPELLATE TRIBUNAL.NO.525/COCH/2014 OF THE INCOME TAX APPELLATE TRIBUNAL. RESPONDENT(S)' EXHIBITS:NIL. //TRUE COPY// bp P.A. TO JUDGE A.M. SHAFFIQUE, J. -------------------------------------- W.P.(C)No.25786 of 2016 ------------------------------------------------- Dated this, the 8[th] day of August, 2016 J U D G M E N T The petitioner challenges Exts.P7 and P8 orders by which stayhas been granted on condition of the petitioner remitting 15% of thetax dues. The orders had been passed when the petitioner preferredappeals against Exts.P1 and P2 orders. 2. The main contention urged by the petitioner is that thelegal issue has already been decided in favour of the petitioner asper the order passed by the appellate Tribunal, Cochin Bench in ITANo.525/2014 and therefore, there was no reason why the petitionershould be called upon to remit any amount as the issue has alreadybeen decided by the Tribunal. Alternatively, the petitioner alsoseeks for early disposal of Exts.P3 and P4 appeals. 3. It is inter alia contended that the entire interest received bythe petitioner Society from other sources has to be deducted underSection 80P(2)(a)(i) of the Income Tax Act and it has been held soby the Tribunal in the case of Kizhathadiyoor Service Co-operativeBank Ltd. 2. The main contention urged by the petitioner is that thelegal issue has already been decided in favour of the petitioner asper the order passed by the appellate Tribunal, Cochin Bench in ITANo.525/2014 and therefore, there was no reason why the petitionershould be called upon to remit any amount as the issue has alreadybeen decided by the Tribunal. Alternatively, the petitioner alsoseeks for early disposal of Exts.P3 and P4 appeals. 3. It is inter alia contended that the entire interest received bythe petitioner Society from other sources has to be deducted underSection 80P(2)(a)(i) of the Income Tax Act and it has been held soby the Tribunal in the case of Kizhathadiyoor Service Co-operativeBank Ltd. 4. On the other hand the learned Standing Counsel appearingfor the Revenue would submit that the issue is pendingconsideration before this Court in an appeal filed by the assessee inITA No.66/2016, the matter relating to Poonjar Service Co-operativeBank Ltd. It is submitted that different Tribunals had taken different W.P.(C)No.25786 of 2016 views and therefore, the issue is yet to be decided by this Court. 5. Taking into consideration the fact that there are contraryviews taken by the Tribunal with reference to the very same issue, Idon't think that the officer committed any error in issuing Exts.P7and P8 and hence I don't intend to interfere with the same. 6. Learned counsel for the petitioner however seeks furthertime to remit the amount as stated in Exts.P7 and P8 and for anearly hearing of the appeals. 7. Taking into consideration the aforesaid request, this writpetition is disposed of as under : 1. The petitioner shall remit the amounts specified inExts.P7 and P8 within a period of three weeks from thedate of receipt of a copy of this judgment.Exts.P7 and P8 within a period of three weeks from thedate of receipt of a copy of this judgment. 2. The 2[nd] respondent shall endeavor to hear and disposeof the appeals Exts.P3 and P4 as expeditiously aspossible. of the appeals Exts.P3 and P4 as expeditiously aspossible. Sd/- A.M. SHAFFIQUE, JUDGE AV