Wp(C)/9598/2020 Of Cheeranchira Service Co-Operative Bank Ltd v. Income Tax Officer

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE BECHU KURIAN THOMAS THURSDAY, THE 30 DAY OF APRIL, 2020/10TH VAISAKHA, 1942 W.P(C). NO. 9598 OF 2020 PETITIONERCHEERANCHIRA SERVICE CO-OPERATIVE BANK LTD, NO. 1626, CHEERANCHIRA P.O, CHANGANACHERY, KOTTAYAM,-686106 REPRESENTED BY ITS SECRETARY JOHN KURIAN BY ADV. SRI..C. A. JOJO. RESPONDENTS: 1. INCOME TAX OFFICER, WARD-1 & T P S, T.K ROAD, THIRUVALLATHIRUVALLA - 689101 2. COMMISSIONER OF INCOME TAX (APPEALS), OFFICE OF THE COMMISSIONER OF INCOME TAX, PUBLIC LIBRARY BUILDING BAKER HILL P.O, KOTTAYAM-686 002 R1-2 BY SRI.JOSE JOSEPH THIS WRIT PETITION HAVING COME UP FOR ADMISSION ON30.04.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: JUDGMENT I have heard the counsel for the petitioner through videoconferencing. I have also heard the learned Standing Counselfor Income Tax who has taken notice on behalf of respondents.In the facts and circumstances of the case, I deem it fit that thiswrit petition be disposed of. 2.Petitioner is an income tax assessee and the issuerelates to the assessment year 2017-2018. By Ext.P1, the 1strespondent disallowed petitioner's claim for deduction underSection 80P of the Income Tax Act and demanded an amount ofRs.62,51,839/- as tax and interest. 3.Challenging the said assessment, petitioner haspreferred Ext.P3 appeal contending that the reason fordisallowing petitioner's claim for deduction under Section 80P isnot tenable. While the appeal is pending, the respondents haveinitiated recovery proceedings to recover the tax allegedly due. Challenging the said assessment, petitioner has 4.I find force in the contention of the counsel for thepetitioner that if the respondents proceed with coercive steps pending consideration of the statutory appeal, the same will berendered redundant and petitioner will be put to severedifficulties. In such circumstances, I dispose of the writ petition bydirecting the respondents not to proceed with coercive stepsagainst the petitioner pending disposal of Ext.P3 appeal. I alsodirect the 2nd respondent to consider and dispose of Ext.P3appeal within a period of 6 months without insisting onpayment of the tax demanded. Sd/-BECHU KURIAN THOMAS JUDGE BNG W.P(C).NO.9598 OF 2020 ..4.. APPENDIX EXHIBIT-P1: A TRUE COPY OF THE ASSESSMENT ORDER FOR AY 2017-18DATED 31.12.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P2: A TRUE COPY OF THE DEMAND NOTICE U/S 156 DATED31.12.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P3: A TRUE COPY OF THE APPEAL FOR AY 2017-18 BEFORETHE 2 RESPONDENT DATED 17.02.2020 EXHIBIT P4: A TRUE COPY OF THE JUDGMENT IN A SIMILAR CASE IN WP (C) 3329/2019 DTD. 6.2.2020