Wp(C)/29791/2019 Of Aloor Service Co-Operative Bank Limited v. The Income Tax Officer

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR WEDNESDAY, THE 06TH DAY OF NOVEMBER 2019/15TH KARTHIKA, 1941 W.P(C).No.29791 OF 2019(Y) PETITIONER: ALOOR SERVICE CO-OPERATIVE BANK LIMITED,NO.693, REPRESENTED BY ITS SECRETARY, PHILO JOSEPH, AGED 56 YEARS, W/O.DAVIS, ALOOR P.O., VIA KALLETTUMKARA, THRISSUR DISTRICT, PIN - 680 683.BY ADVS.SRI.C.A.JOJOSMT.SWATHY S. RESPONDENTS: 1THE INCOME TAX OFFICER,WARD 2(1), AYAKAR BHAVAN, NEAR SAKTHAN STAND, THRISSUR - 68001.2THE COMMISSIONER OF INCOME TAX (APPEALS),AYAKAR BHAVAN, NEAR SAKTHAN STAND, THRISSUR – 68001.BY SRI.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FORADMISSION ON 06.11.2019, THE COURT ON THE SAME DAY DELIVEREDTHE FOLLOWING: J U D G M E N T Against Exts.P1 and P5 assessment orders under theIncome Tax Act, the petitioner has preferred Exts.P3 and P7appeals along with stay applications before the 2[nd] respondent.In the stay applications, by Ext.P8 order, the Appellate Authoritydirected the petitioner to pay 20% of the disputed demand as acondition for stay of recovery of balance amounts pendingdisposal of the appeals. Exts.P2 and P6 are the demand noticesissued to the petitioner in this regard. 2. I have heard the learned counsel for the petitioner asalso the learned Standing Counsel for the respondents. On a consideration of the facts and circumstances of thecase as also the submissions made across the bar, I find that theissue involved in the appeals is the permissibility of deductionunder Section 80P of the Income Tax Act. In connected matters,this Court has directed the Appellate Authority to consider and pass orders on the appeals and granted a stay of recovery of thedisputed demands pending disposal of the appeals by theAppellate Authority. Following the said orders, I quash Ext.P8order, and direct the 2[nd] respondent Appellate Authority toconsider and pass orders on Exts.P3 and P7 appeals within anouter time limit of three months from the date of receipt of acopy of this judgment, after hearing the petitioner. Recoverysteps, pursuant to Exts.P2 and P6 demand notices, shall be keptin abeyance till such time as orders are passed by the 2[nd]respondent, as directed, and the order communicated to thepetitioner. The petitioner shall produce a copy of the writpetition together with a copy of this judgment, before the 2[nd]respondent, for further action. Sd/-A.K.JAYASANKARAN NAMBIAR JUDGE prp/6/11/19 W.P.(C).No.29791/2019 : 4 : APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER AY2008-08 DATED 22/03/2016 ISSUED BY THEFIRST RESPONDENT.2008-08 DATED 22/03/2016 ISSUED BY THEFIRST RESPONDENT. EXHIBIT P2A TRUE COPY OF THE DEMAND NOTICE DATED22/03/2016 ISSUED BY THE FIRST RESPONDENT.22/03/2016 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 A TRUE COPY OF THE APPEAL FOR AY 2008-09DATED 18/04/2016 FILED BEFORE THE 2NDRESPONDENT.DATED 18/04/2016 FILED BEFORE THE 2NDRESPONDENT. EXHIBIT P4A TRUE COPY OF THE STAY PETITION DATED20/04/2016 FILED BEFORE THE 2ND RESPONDENT.20/04/2016 FILED BEFORE THE 2ND RESPONDENT. EXHIBIT P5A TRUE COPY OF THE ASSESSMENT ORDER FOR AY2016-17 DATED 23/12/2018 ISSUED BY THE 1STRESPONDENT.2016-17 DATED 23/12/2018 ISSUED BY THE 1STRESPONDENT. EXHIBIT P6A TRUE COPY OF THE DEMAND NOTICE DATED23/12/2018 ISSUED BY THE 1ST RESPONDENT.23/12/2018 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P7A TRUE COPY OF THE APPEAL FOR AY 2016-17DATED 23/01/2019 FILED BEFORE THE 2NDRESPONDENT.DATED 23/01/2019 FILED BEFORE THE 2NDRESPONDENT. EXHIBIT P8A TRUE COPY OF THE ORDER OF THE 2NDRESPONDENT DATED 26/09/2019.RESPONDENT DATED 26/09/2019. EXHIBIT P9A TRUE COPY OF THE JUDGMENT IN WP(C)NO.24808/2019 DATED 19/09/2019.NO.24808/2019 DATED 19/09/2019. RESPONDENTS EXHIBITS:NIL. EXHIBIT P5A TRUE COPY OF THE ASSESSMENT ORDER FOR AY2016-17 DATED 23/12/2018 ISSUED BY THE 1STRESPONDENT.2016-17 DATED 23/12/2018 ISSUED BY THE 1STRESPONDENT. EXHIBIT P6A TRUE COPY OF THE DEMAND NOTICE DATED23/12/2018 ISSUED BY THE 1ST RESPONDENT.23/12/2018 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P7A TRUE COPY OF THE APPEAL FOR AY 2016-17DATED 23/01/2019 FILED BEFORE THE 2NDRESPONDENT.DATED 23/01/2019 FILED BEFORE THE 2NDRESPONDENT. EXHIBIT P8A TRUE COPY OF THE ORDER OF THE 2NDRESPONDENT DATED 26/09/2019.RESPONDENT DATED 26/09/2019. EXHIBIT P9A TRUE COPY OF THE JUDGMENT IN WP(C)NO.24808/2019 DATED 19/09/2019.NO.24808/2019 DATED 19/09/2019. RESPONDENTS EXHIBITS:NIL. //TRUE COPY// P.S. TO JUDGE