Disposed

Eramala Service Co-Operative Bank Ltd. F-1044 v. the Central Board of Direct Taxes

Kerala HC17 Jul 2020WP(C)/14532/2020

Case brief

AI extract

What is this about?

The Court, in a writ petition regarding an income tax appeal, set aside the appellate authority's order directing payment of 20% of the confirmed amount as a condition for staying recovery. The Court remanded the matter for a decision on the appeal within six months and stayed recovery steps pending the appellate authority's order.

What did the court decide?

Set aside Ext.P5 stay order; direct 3rd respondent to decide Ext.P2 appeal within six months; keep recovery in abeyance.

Eramala Service Co-Operative Bank Ltd. F-1044 Vs the Central Board… — Income Tax | Kerala HC (2020)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR

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FRIDAY, THE 17TH DAY OF JULY 2020 / 26TH ASHADHA, 1942

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WP(C).No.14532 OF 2020

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PETITIONER:

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ERAMALA SERVICE CO-OPERATIVE BANK LTD. F-1044 MAIN ROAD, ORKKATTERI, KOZHIKODE - 673542, REPRESENTED BY ITS SECRETARY VINODAN T.K,

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BY ADV. DR.K.P.PRADEEP

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RESPONDENTS:

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1 THE CENTRAL BOARD OF DIRECT TAXES

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DEPARTMENT OF REVENUE, MINISTRY OF FINANCE GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110001, REPRESENTED BY ITS ITS CHAIRMAN.

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2 INCOME TAX OFFICER, WARD 2(2), AAYAKAR BHAVAN, INCOME TAX OFFICE, SOUTH BLOCK, MANANCHIRA, KOZHIKODE- 673001.

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3 COMMISSIONER OF INCOME TAX (APPEALS) KOZHIKODE, AAYAKAR BHAVAN, INCOME TAX OFFICE, KOZHIKODE- 673001.

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BY ADV.SRI. CHRISTOPHER ABRAHAM,SC

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.07.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No.14532 of 2020

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JUDGMENT

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Against Ext.P1 assessment order under the Income Tax Act, the petitioner has preferred Ext.P2 appeal and Ext.P4 stay petition before the 3^rd respondent. It is a case of the petitioner that by Ext.P5 stay order, the appellate authority directed the petitioner to pay 20% of the amount confirmed by the assessment order as a condition for stay of recovery of the balance amount pending disposal of the appeal. The learned counsel would submit that the issue involved in the appeal is the permissibility of the deduction under Section 80P of the Income Tax Act in its relation to Co-operative societies. It is pointed out that in similar matters this Court has granted a stay of recovery of the disputed amount pending disposal of the appeal by the Appellate Authority.

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Taking note of the said submission and finding that this Court has in similar cases granted a stay of recovery pending disposal of the appeal by the appellate authority, I set aside Ext.P5 stay order and direct the 3^rd respondent to consider and pass orders on Ext.P2 appeal within an outer time limit of six months from the date of receipt of a copy of this judgment, after hearing the petitioner. It is made clear that till such time as orders are passed by the 3^rd respondent as directed, and the order communicated to the petitioner, recovery steps for recovery of amounts confirmed against the petitioner by Ext.P1 assessment order shall be kept in abeyance. The petitioner shall produce a copy of the writ petition

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WP(C).No.14532 of 2020

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together with a copy of this judgment, before the 3^rd respondent, for

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further action.

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Sd/-

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A.K.JAYASANKARAN NAMBIAR JUDGE

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mns/17.7.2020

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WP(C).No.14532 of 2020

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APPENDIX

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PETITIONER'S/S EXHIBITS:

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EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER ITBA/AST/S/143(3)/2019-20/1022508087 (1) DATED 17.12.2019 ISSUED FOR THE YEAR 2017-18 BY THE 2ND RESPONDENT. EXHIBIT P2 TRUE COPY OF THE APPEAL DATED 07.01.2020 FILED BEFORE THE 3RD RESPONDENT FOR THE ASSESSMENT YEAR 2017-18. EXHIBIT P3 TRUE COPY OF THE DEMAND NOTICE NO. ITBA/AST/S/156/2019-20/1022508312(1) DATED 17.12.2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P4 TRUE COPY OF THE STAY APPLICATION FILED ON 07.01.2020 BEFORE THE 3RD RESPONDENT IN EXT P2 APPEAL. EXHIBIT P5 TRUE COPY OF THE ORDER NO ITA - 11073/CIT/ (A)/2019-20 DATED 13.03.2020 ISSUED FOR THE YEAR 2017-18 BY THE 3RD RESPONDENT.

Eramala Service Co-Operative Bank Ltd. F-1044 v. the Central Board of Direct Taxes

Case brief

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Eramala Service Co-Operative Bank Ltd. F-1044 v. the Central Board of Direct Taxes

Case brief

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