Ochanthuruth Service Co-Operative Bank v. The ITO, NCW-2(5), Ernakulam / The CIT (A)-2, Kochi / ADIT, CPC, Bangalore / The CBDT, New Delhi
[Citation -2020-LL-0311-48]

Citation 2020-LL-0311-48
Appellant Name Ochanthuruth Service Co-Operative Bank
Respondent Name The ITO, NCW-2(5), Ernakulam / The CIT (A)-2, Kochi / ADIT, CPC, Bangalore / The CBDT, New Delhi
Court HIGH COURT OF KERALA AT ERNAKULAM
Relevant Act Income-tax
Date of Order 11/03/2020
Assessment Year 2012-13, 2014-15, 2017-18, 2018-19
Judgment View Judgment
Keyword Tags rectification application • application for stay • statutory appeal • disputed amount • grant exemption • coercive steps • stay petition • recovery proceeding
Bot Summary: No.7478 OF 2020 -2- JUDGMENT Petitioner, the Co-operative Bank situated in Ernakulam District carrying on the primary Agricultural Credits Society claimed deductions under Section 80P of the Income Tax Act and filing NIL returns for the years 2012-13, 2014-15, 2017-18 2018-19. The 1st respondent passed Exts.P1 P1(a) assessment orders for the years 2012-13 and 2017-18 disallowing to grant deduction against the petitioner who has filed statutory appeals Exts.P2 P2(a), but in the meantime the 1 st respondent, i.e., the assessing officer, vide communication Ext.P4 in terms of the power under Article 220(6) of the Income Tax Act as well as the Circular of 2017 called upon the petitioner to deposit 20 of the disputed amount as a pre-condition for grant of stay. Learned counsel appearing on behalf of the petitioner submitted that petitioner is under imminent threat of revenue recovery proceedings for the assessment years 2012-13, 2017-18 2018-19. Petitioner has also preferred a rectification application dated 07.02.2020 and the same is still pending consideration. Petitioner is willing to appear before the assessing officer and bring on record material if claiming exemption under Section 80P. 4. Having heard learned counsel for the parties and appraised the paper books, I am of the view that the petitioner cannot be impasse of non- consideration of the stay applications during the pendency of Exts.P2 P2(a) appeals, which will seriously prejudice the rights of the petitioner on the fact that declining to grant exemption under Section 80P was not justified. Accordingly, Without expressing anything on the merits of the matter, I dispose of this writ petition with a direction to the 2 nd respondent to decide the application for stay along with the appeals Exts.P2 P2(a) within 45 days from the date of receipt of a certified copy of the judgment and take a decision thereon and with a further WP(C).


IN HIGH COURT OF KERALA AT ERNAKULAM PRESENT HONOURABLE MR. JUSTICE AMIT RAWAL WEDNESDAY, 11TH DAY OF MARCH 2020 / 21ST PHALGUNA, 1941 WP(C).No.7478 OF 2020(H) PETITIONER: OCHANTHURUTH SERVICE CO-OPERATIVE BANK OCHANTHURUTH, COCHIN, ERNAKULAM-682508, REPRESENTED BY ITS SECRETARY, SRI.A.S.GOPALAKRISHNAN. BY ADVS. SRI.AJI V.DEV SRI.ALAN PRIYADARSHI DEV SRI.SOORAJ K.ABRAHAM SHRI.KIRAN RAMACHANDRAN NAIR RESPONDENTS: 1 INCOME TAX OFFICER NON CORP WARD 2(5), INCOME TAX OFFICER, L.G.TOWERS, THOPPUMPADY, ERNAKULAM-682005. 2 COMMISSIONER OF INCOME TAX (APPEALS)-2, KOCHI-682036. 3 ASSISTANT DIRECTOR OF INCOME TAX, CENTRALIZED PROCESSING CENTER, BANGALORE-560500. 4 CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110001, REPRESENTED BY ITS CHAIRMAN. OTHER PRESENT: SRI CHRISTOPHER ABRAHAM SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.03.2020, COURT ON SAME DAY DELIVERED FOLLOWING: WP(C).No.7478 OF 2020 -2- JUDGMENT Petitioner, Co-operative Bank situated in Ernakulam District carrying on primary Agricultural Credits Society claimed deductions under Section 80P of Income Tax Act and filing NIL returns for years 2012-13, 2014-15, 2017-18 & 2018-19. However, 1st respondent passed Exts.P1 & P1(a) assessment orders for years 2012-13 and 2017-18 disallowing to grant deduction against petitioner who has filed statutory appeals Exts.P2 & P2(a), but in meantime 1 st respondent, i.e., assessing officer, vide communication Ext.P4 in terms of power under Article 220(6) of Income Tax Act as well as Circular of 2017 called upon petitioner to deposit 20% of disputed amount as pre-condition for grant of stay. WP(C).No.7478 OF 2020 -3- 2. Learned counsel appearing on behalf of petitioner submitted that petitioner is under imminent threat of revenue recovery proceedings for assessment years 2012-13, 2017-18 & 2018-19. Petitioner has also preferred rectification application dated 07.02.2020 and same is still pending consideration. Reliance in this regard has been laid to screenshot Ext.P8. He submits that predicament of petitioner is result of non consideration of stay application by appellate authority pertaining to two assessment years i.e., 2012-13 & 2017-18 and non-consideration of rectification application for assessment year 2018- 19. It is seriously contended that imminent threat of coercive steps cannot be permitted to be ignored. 3. Learned counsel for respondent submits that rectification application against Ext.P6 dated 07.02.2020 is not maintainable as it is WP(C).No.7478 OF 2020 -4- communication under Section 143(1)(a) and no such assessment. Petitioner is willing to appear before assessing officer and bring on record material if claiming exemption under Section 80P. 4. Having heard learned counsel for parties and appraised paper books, I am of view that petitioner cannot be impasse of non- consideration of stay applications during pendency of Exts.P2 & P2(a) appeals, which will seriously prejudice rights of petitioner on fact that declining to grant exemption under Section 80P was not justified. Accordingly, Without expressing anything on merits of matter, I dispose of this writ petition with direction to 2 nd respondent to decide application for stay along with appeals Exts.P2 & P2(a) within 45 days from date of receipt of certified copy of judgment and take decision thereon and with further WP(C).No.7478 OF 2020 -5- direction to 1st respondent to take decision on rectification application Ext.P7 dated 17.02.2020 preferred against communication dated 07.02.2020, Ext.P6, as expeditiously as possible. Sd/- AMIT RAWAL JUDGE vv WP(C).No.7478 OF 2020 -6- APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF ASSESSMENT ORDER PASSED BY 1ST RESPONDENT FOR YEAR 2012-13 DATED 12.03.2015. EXHIBIT P1(A) TRUE COPY OF ASSESSMENT ORDER PASSED BY 1ST RESPONDENT FOR YEAR 2017-18 DATED 30.12.2019. EXHIBIT P2 TRUE COPY OF STATUTORY APPEAL FILED BY PETITIONER AGAINST EXT.P1 ORDER DATED 04.03.2015. EXHIBIT P2(A) TRUE COPY OF STATUTORY APPEAL FILED BY PETITIONER AGAINST EXT.P1(A) ORDER DATED 29.01.2020. EXHIBIT P3 TRUE COPY OF STAY PETITION FILED ALONG WITH EXT.P2 APPEAL DATED 08.10.2019. EXHIBIT P3(A) TRUE COPY OF STAY PETITION FILED ALONG WITH EXT.P2(A) APPEAL DATED 29.01.2020. EXHIBIT P4 TRUE COPY OF INTIMATION FROM 1ST RESPONDENT DATED 19.02.2020 DIRECTING PETITIONER TO REMIT 20% OF AMOUNT DEMANDED FOR CONSIDERATION OF EXT.P3 & P.3(A) STAY PETITIONS IN THIS INSTANT CASE. EXHIBIT P5 TRUE COPY OF NOTICE U/S.221(1) DATED 03.03.2020. EXHIBIT P6 TRUE COPY OF COMMUNICATION U/S.143(1)(A) DATED 07.02.2020. EXHIBIT P7 TRUE OF ACKNOWLEDGMENT OF RECTIFICATION REQUEST GENERATED ONLINE DATED 17.02.2020. WP(C).No.7478 OF 2020 -7- EXHIBIT P8 TRUE COPY OF SCREENSHOT OF PORTAL INDICATING PENDING STATUS OF RECTIFICATION REQUEST AS ON 09.03.2020. TRUE COPY PA TO JUDGE Ochanthuruth Service Co-Operative Bank v. ITO, NCW-2(5), Ernakulam / CIT (A)-2, Kochi / ADIT, CPC, Bangalore / CBDT, New Delhi
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