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.7883 OF 2020(I) PETITIONER/S: PATHIYOOR FARMERS SERVICE CO-OPERATIVE BANK LTD.NO.1282, PATHIYOOR, KEERIKKAD.P.O., KARTHIKAPPALLY, ALAPPUZHA DISTRICT, REPRESENTED BY ITS MANAGING DIRECTOR. BY ADV. SRI.O.D.SIVADAS RESPONDENT/S: 1 COMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN, KOTTAYAM, PIN-686001. 2 INCOME TAX OFFICER, WARD NO.3, ALAPPUZHA, PIN-688011. OTHER PRESENT: SC SRI.JOSE JOSEPH 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. 7883 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 P3 stay petition. Exhibit P4 is order passed on stay petition requiring petitioner to remit 20% of tax due, which is disputed in appeal. 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 P4. 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% WP(C).7883/2020 3 of tax in case of Co-operative Societies. demand under Exhibit P4 being contrary to decision of Division Bench, Exhibit P4 cannot be sustained and is hence quashed. 4. Considering limited prayer, writ petition is disposed of directing 1st 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 vgs16.3 WP(C).7883/2020 4 W.P(C).No. 7883 of 2020 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF ASSESSMENT ORDER DATED 24.12.2019 ISSUED BY 3RD RESPONDENT FOR ASSESSMENT YEAR 2017-18. EXHIBIT P2 TRUE COPY OF APPEAL DATED 14.1.2020 FILED BY PETITIONER BEFORE 1ST RESPONDENT FOR ASSESSMENT YEAR 2017-18. EXHIBIT P3 TRUE COPY OF APPLICATION DATED 14.2.2020 OR STAY FILED BY PETITIONER BEFORE 2ND RESPONDENT FOR STAYING ORDER FOR ASSESSMENT YEAR 2017-18. EXHIBIT P4 TRUE COPY OF ORDER DATED 5.3.2020 ISSUED BY 2ND RESPONDENT WITH RESPECT TO ASSESSMENT YEAR 2017-18. Pathiyoor Farmers Service Co-Operative Bank Ltd. v. Commissioner of Income-tax (Appeals), Kottayam/The Income-tax Officer, Ward No.3, Alappuzha