Wp(C)/39825/2022 Of Kundayam Service Co-Operative Bank Ltd v. The Income Tax Officer

IN THE HIGH COURT OF KERALA AT ERNAKULAMPRESENT THE HONOURABLE MR.JUSTICE K. BABU FRIDAY, THE 9 DAY OF DECEMBER 2022 / 18TH AGRAHAYANA, 1944WP(C) NO. 39825 OF 2022 PETITIONER: KUNDAYAM SERVICE CO-OPERATIVE BANK LTD. NO.3259 REPRESENTED BY ITS SECRETARY, KUNDAYAM P.O, PATHANAPURAM, KOLLAM DISTRICT.PIN – 689695 BY ADVS.ARJUN RAGHAVANT.R.HARIKUMAR RESPONDENTS: 1THE INCOME TAX OFFICERWARD-4, KOLLAM RANGE, AAYAKAR BHAVAN, NEAR KARBALA JUNCTION, KOLLAM.PIN – 691001WARD-4, KOLLAM RANGE, AAYAKAR BHAVAN, NEAR KARBALA JUNCTION, KOLLAM.PIN – 691001 OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX, 2THE COMMISSIONER OF INCOME TAX (APPEALS)NATIONAL FACELESS APPEAL CENTRE, NORTH BLOCK,DELHI, PIN – 110001NATIONAL FACELESS APPEAL CENTRE, NORTH BLOCK,DELHI, PIN – 110001 3THE REGISTRAR, INCOME TAX APPELLATE TRIBUNALCOCHIN BENCH, KENDRIYA BHAVAN, BLOCK NO.C1 & C2, 1ST FLOOR, KAKKANAD, COCHIN. PIN – 682030 BY ADVs SRI. CHRISTOPHER ABRAHAM SRI. JOSE JOSEPH,SC FOR INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.12.2022, THE COURT ON THE SAME DAY DELIVERED THEFOLLOWING: K.BABU, J. ------------------------------------------- W.P.(Crl) No.39825 of 2022 --------------------------------------------- Dated this the 9[th] day of December , 2022 JUDGMENT The prayers in this Writ Petition filed under Article 226 of the Constitution of India are as follows:- “(i)to issue a writ of mandamus or any otherwrit, order or direction, directing the 1[st]respondent not to proceed with recovery of thedemand based on the assessment order for theyear 2017-2018, till Ext.P4 stay petition disposedof by 3[rd] respondent Tribunal; (ii)to issue a writ of mandamus or any otherwrit, order or direction, directing the 1[st]respondent not to proceed with recovery of thedemand based on the assessment order for theyear 2017-2018, till Ext.P3 appeal disposed of by3[rd] respondent Tribunal; and (iii)to grant such other relief’s as thisHonourable Court may deem fit in thecircumstances of this case.” 2. Heard both sides. 3.The petitioner is a Primary Agricultural Credit Society Registered as per the provisions of the Kerala Co-operativeSocieties Act. The petitioner had filed its return of income forthe assessment year 2017-2018, declaring nil income. Later, the petitioner was served with a notice under Section 143(2) of the Income Tax Act, followed by a notice under Section 142 (1)on the premise that the petitioner is not eligible for thededuction under 80P of the Income Tax Act. 4.The petitioner preferred first appeal before the 2[nd]respondent which was allowed partly. Later, the petitioner hadpreferred second appeal (Ext.P3). The petitioner also prayed forthe stay of the recovery proceedings as per Ext.P4 application. 5.Now, the petitioner has prayed for giving direction tothe 1[st] respondent not to proceed with the recovery of thedemand based on the assessment of the 2017-2018 till thedisposed of Ext.P4. Now, the petitioner has prayed for giving direction to Having regard to the nature of challenges raised by thepetitioner, this Court feels that the reliefs prayed for can begranted. Therefore, first respondent is directed not to proceedwith the recovery of the demand based on the assessmentorder of the year 2017-2018 till Ext.P4 application is disposed ofby the third respondent. The Writ Petition (Civil) is disposed of accordingly. K.BABU JUDGE APPENDIX OF WP(C) 39825/2022 PETITIONER EXHIBITS Exhibit-P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 2017-2018 DATED 30-11-2019 Exhibit-P2 A TRUE COPY OF THE ORDER DATED 19-09-2022ISSUED BY THE 2ND RESPONDENT Exhibit-P3 A TRUE COPY OF THE APPEAL MEMORANDUM DATED 28-11-2022 ALONG WITH AFFIDAVIT ANDCHELAN, FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT TRIBUNAL Exhibit-P4 A TRUE COPY OF THE STAY PETITION FILED INEXT-P3 APPEAL, DATED 28-11-2022 Exhibit-P5 The Writ Petition (Civil) is disposed of accordingly. K.BABU JUDGE APPENDIX OF WP(C) 39825/2022 PETITIONER EXHIBITS Exhibit-P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 2017-2018 DATED 30-11-2019 Exhibit-P2 A TRUE COPY OF THE ORDER DATED 19-09-2022ISSUED BY THE 2ND RESPONDENT Exhibit-P3 A TRUE COPY OF THE APPEAL MEMORANDUM DATED 28-11-2022 ALONG WITH AFFIDAVIT ANDCHELAN, FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT TRIBUNAL Exhibit-P4 A TRUE COPY OF THE STAY PETITION FILED INEXT-P3 APPEAL, DATED 28-11-2022 Exhibit-P5 A TRUE COPY OF THE JUDGMENT DATED 19-07-2019 IN W.A NO.1639 OF 2019 OF THIS HON'BLE COURT Exhibit-P6 A TRUE COPY OF THE JUDGMENT DATED 11-07-2022 IN WP(C) NO.22397 OF 2022 OF THIS HON'BLE COURT