Vazhithala Service Co-Operative Bank Ltd. v. The Income-tax Officer, Ward-2, Thodupuzha/The Commissioner of Income-tax (Appeals) -II, Kochi
[Citation -2020-LL-0313-87]

Citation 2020-LL-0313-87
Appellant Name Vazhithala Service Co-Operative Bank Ltd.
Respondent Name The Income-tax Officer, Ward-2, Thodupuzha/The Commissioner of Income-tax (Appeals) -II, Kochi
Court HIGH COURT OF KERALA AT ERNAKULAM
Relevant Act Income-tax
Date of Order 13/03/2020
Assessment Year 2017-18
Judgment View Judgment
Keyword Tags stay petition • stay of recovery • recovery proceeding
Bot Summary: No. 7846 of 2020 Dated this the 13th day of March, 2020 JUDGMENT Aggrieved by Exhibit P1 assessment order, the petitioner has preferred Exhibit P2 appeal along with Exhibit P4 stay petition. Exhibit P3 is the letter requiring the petitioner to remit 20 of the tax due. The prayer in the writ petition is for expeditious consideration of the appeal and to stay the recovery proceedings including the insistence to pay 20 of the amount as demanded under Exhibit P3. 2. 1536 of 2019, after taking into consideration the Full Bench decision in Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut 2020 KHC 2871, held that there shall not be any insistence for payment of 20 of the tax in the case of Co-operative Societies. 7846/20 3 under Exhibit P3 being contrary to the decision of the Division Bench, Exhibit P3 cannot be sustained and is hence quashed. Considering the limited prayer, the writ petition is disposed of directing the 2nd respondent to consider and pass orders on Exhibit P2 appeal as expeditiously as possible. Till orders are passed on the appeal, recovery proceedings based on Exhibit P1 assessment order shall stand deferred and there shall not be any insistence for payment of the tax assessed.


IN HIGH COURT OF KERALA AT ERNAKULAM PRESENT HONOURABLE MR.JUSTICE V.G.ARUN FRIDAY, 13TH DAY OF MARCH 2020 / 23RD PHALGUNA, 1941 WP(C).No.7846 OF 2020(E) PETITIONER/S: M/S.VAZHITHALA SERVICE CO-OPERATIVE BANK LTD NO. 908, VAZHITHALA SCB BUILDING, VAZHITHALA P.O. THODUPUZHA 685 583, REPRESENTED BY ITS SECRETARY REJI.N. ABRAHAM. BY ADV. SRI.S.ARUN RAJ RESPONDENT/S: 1 INCOME TAX OFFICER WARD-2, MAHIMA TOWERS, TEMPLE ROAD, THODUPUZHA 685 584. 2 COMMISSIONER OF INCOME TAX (APPEALS) -II, POOMIMA BUILDING, PANAMAPAILLY, NAGAR, KOCHI 682 036. OTHER PRESENT: SC CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13.03.2020, COURT ON SAME DAY DELIVERED FOLLOWING: V.G.ARUN, J. W.P(C).No. 7846 of 2020 Dated this 13th day of March, 2020 JUDGMENT Aggrieved by Exhibit P1 assessment order, petitioner has preferred Exhibit P2 appeal along with Exhibit P4 stay petition. Exhibit P3 is letter requiring petitioner to remit 20% of tax due. prayer in writ petition is for expeditious consideration of appeal and to stay recovery proceedings including insistence to pay 20% of amount as demanded under Exhibit P3. 2. Heard learned Standing Counsel for Income-Tax Department also. 3. question regarding insistence for remittance of 20% of tax due had come up before this Court earlier and Division Bench of this Court had, by judgment in W.A.No.1536 of 2019, after taking into consideration Full Bench decision in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, Calicut [2020 (2) KHC 2871], held that there shall not be any insistence for payment of 20% of tax in case of Co-operative Societies. demand WP(C).7846/20 3 under Exhibit P3 being contrary to decision of Division Bench, Exhibit P3 cannot be sustained and is hence quashed. 4. Considering limited prayer, writ petition is disposed of directing 2nd respondent to consider and pass orders on Exhibit P2 appeal as expeditiously as possible. Till orders are passed on appeal, recovery proceedings based on Exhibit P1 assessment order shall stand deferred and there shall not be any insistence for payment of tax assessed. Sd/- V.G.ARUN, JUDGE vgs17.3 WP(C).7846/20 4 APPENDIX PETITIONERS' EXHIBITS: EXHIBIT P1: COPY OF ASSESSMENT ORDER DATED 19.12.2019 PASSED BY 1ST RESPONDENT UNDER SECTION 143(3) OF ACT FOR AY 2017-18. EXHIBIT P2: COPY OF FIRST APPEAL FILED BY PETITIONER BEFORE 2ND RESPONDENT FOR AY 2017-18. EXHIBIT P3: COPY OF LETTER DATED 11.2.2020 ISSUED BY 1ST RESPONDENT TO PETITIONER FOR AY 2017-18. EXHIBIT P4: COPY OF STAY APPLICATION DATED 24.2.2020 FILED BEFORE 2ND RESPNDENT FOR AY 2017-18. Vazhithala Service Co-Operative Bank Ltd. v. Income-tax Officer, Ward-2, Thodupuzha/The Commissioner of Income-tax (Appeals) -II, Kochi
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