Wp(C)/8766/2020 Of The Kararinakam 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 WEDNESDAY, THE 30TH DAY OF SEPTEMBER 2020 / 8TH ASWINA,1942 WP(C).No.8766 OF 2020(U) PETITIONER/S: THE KARARINAKAM SERVICE CO-OPERATIVE BANK LTD.,KADALAYI P.O, KANNUR-670 007, REPRESENTED BY ITS SECRETARY P P SUNANDA KUMARI. BY ADVS.SRI.S.ARUN RAJSMT.C.T.SUJA RESPONDENT/S: 1THE INCOME TAX OFFICER,WARD -1 AND TPS, KANNUR RANGE, KANNUR-670 006.WARD -1 AND TPS, KANNUR RANGE, KANNUR-670 006. 2THE PRINCIPAL COMMISSIONER OF INCOME TAX,AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, KOZHIKODE-673 001.AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, KOZHIKODE-673 001. 3THE COMMISSIONER OF INCOME TAX (APPEALS),AAYAKAR BHAVAN, MANANCHIRA, KOZHIKODE-673 001. OTHER PRESENT: GOVERNMENT PLEADER SRI.THUSHARA JAMES THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30.09.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: J U D G M E N T The petitioner has preferred Ext.P2 appeal along with stay applicationbefore the 3rd respondent Appellate Authority. It is stated that the AppellateAuthority, by Ext.P4 stay order, mechanically directed the petitioner to deposit 20%of the amount confirmed by Ext.P1 assessment order as a condition for stay of therecovery of the balance amounts, pending disposal of the appeal. 2. The learned counsel for the petitioner would point out that the issueinvolved in the appeal is the permissibility of a deduction under Section 80P of theIncome Tax Act in its application to Co-operative societies, and in connectedmatters this Court has directed the Appellate Authority to consider and pass orderson the appeal while further directing that recovery steps for recovery of amountsconfirmed against the petitioner by the assessment orders shall be kept in abeyancepending disposal of the appeal. 3. I have heard the learned counsel for the petitioner and the learnedGovernment Pleader for the respondents. Taking note of the similar orders passed by this Court, I dispose of the writpetition, by quashing Ext.P4 stay order and directing the 3rd respondent AppellateAuthority to consider and pass orders on Ext.P2 appeal within an outer time limit ofsix months from the date of receipt of a copy of this judgment after hearing thepetitioner. Recovery of the amounts confirmed against the petitioner by Ext.P1 W.P.(C).No.8766/2020 assessment order shall be kept in abeyance till such time as orders are passed by the3rd respondent as directed and the order communicated to the petitioner. ThePetitioner shall produce a copy of the writ petition and a copy of this judgmentbefore the respondents for further action. Sd/- A.K.JAYASANKARAN NAMBIARJUDGE DG APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 28.12.2016 PASSED BY THE 1ST RESPONDENT UNDER SECTION 143(3) OF THE ACT FOR THE AY 2014-15 EXHIBIT P2 TRUE COPY OF THE FIRST APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT FOR THE AY 2014-15 EXHIBIT P3 TRUE COPY OF THE STAY APPLICATION DATED 08.04.2019 FILED BEFORE THE 1STRESPONDENT FOR THE AY 2014-15. EXHIBIT P4 TRUE COPY OF THE ORDER DATED 24.02.2020 PASSED BY THE 3RD RESPONDENT ON THE STAY APPLICATION.