The Chovva Co-Operative Rural Bank Ltd. v. Income-tax Officer, Ward-1 And TPS, Kannur/The Commissioiner of Income-tax (Appeals), Kozhikode
|The Chovva Co-Operative Rural Bank Ltd.
|Income-tax Officer, Ward-1 And TPS, Kannur/The Commissioiner of Income-tax (Appeals), Kozhikode
|HIGH COURT OF KERALA AT ERNAKULAM
|Date of Order
|2013-14, 2014-15, 2016-17
|stay petition • time limit
|No. 7903 of 2020 Dated this the 13th day of March, 2020 JUDGMENT Aggrieved by Exhibits P1, P2 and P3 assessment orders for the years 2013-2014, 2014-2015 and 2016-2017, the petitioner has preferred Exhibits P4, P5 and P6 appeals. The petitioner had also preferred Exhibits P7, P8 and P9 stay petitions, which have been disposed of under Exhibit P10 order, directing the petitioner to remit 20 of the tax assessed, within the time limit prescribed therein. The prayer in the writ petition is for expeditious consideration of the appeals filed by the petitioner and to defer recovery proceedings based on the assessment orders, as also the demand of 20 made under Exhibit P10. 2. The question as to whether the Primary Agricultural Credit Societies seeking exemption under Section 80P of the Income Tax Act could be compelled to remit a percentage of the tax assessed had come up for consideration before this Court in W.A.No. The Division Bench referred to the Full Bench decision in Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut 2020 KHC 2871 and held the insistence to be bad. In the light of the Division Bench judgment, there cannot be any insistence for payment of a portion of the tax assessed, as has been done under Exhibit P10. Therefore, Exhibit P10 is quashed. The 2 nd respondent is directed to consider and pass orders on Exhibits P4, P5 and P6 appeals as expeditiously as possible. Till orders are passed on the appeals, recovery based on Exhibits P1, P2 and P3 assessment orders shall be kept in abeyance.