IN HIGH COURT OF KERALA AT ERNAKULAM PRESENT HONOURABLE MR. JUSTICE AMIT RAWAL MONDAY, 25TH DAY OF MAY 2020 / 4TH JYAISHTA, 1942 WP(C).No.10227 OF 2020(C) PETITIONER/S: ARANATTUKARA ORIENTAL SERVICE CO-OPERATIVE BANK LTD NO.171 ARANATTUKARA, THRISSUR-680618, REPRESENTEDBY ITS SECRETARY. BY ADV. SRI.P.C.SASIDHARAN RESPONDENT/S: 1 COMMISSIONER OF INCOME TAX(APPEALS) AAYAKAR BHAVAN, S.T. NAGAR, THRISSUR. 2 INCOME TAX OFFICER, WARD 2(1), THRISSUR, OFFICE OF INCOME TAX OFFICER, SHAKTHANTHAMPURAN NAGAR,THRISSUR-680 001 OTHER PRESENT: SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.05.2020, COURT ON SAME DAY DELIVERED FOLLOWING: WP(C).No.10227 OF 2020(C) 2 JUDGMENT Dated this 25th day of May 2020 Petitioner is primary Co-operative Agricultural Credit Society registered under Kerala Co-operative Societies Act. Petitioner is assesee on file of 2nd respondent. While so, 2nd respondent issued notice under Section 156 of Income tax Act pertaining to assessment year 2017-18. 2. Aggrieved by assessment order petitioner preferred appeal before 1st respondent along with stay application. It is submitted that neither appeal nor stay petition has been considered by respondents. Apprehending coercive action, petitioner has approached this Court by filing this writ petition. In this regard he relied upon judgment of Division Bench of this Court in writ appeal No.1536/19 dated 1.7.2019 arising out of judgment dated 31.5.2019 W.P.(C)12843/19. Division Bench after noticing decision of Full Bench of this Court in ITA No.97/16 and connected cases, decided on 19.3.2019 titled as Mavilayi Service Co-operative Bank Ltd. Vs. Commissioner of Income Tax 2019 (2) KHC 287, wherein for considering WP(C).No.10227 OF 2020(C) 3 appeal demand of 20% as condition precedent has been negated. 4. Issue notice before admission. Sri.Jose Joseph accepts notice on behalf of income tax authorities. He submits that order is in consonance with provisions of Section 144 of Income Tax Act and Circular dated 31.7.2017 mandating appellate authorities to ask for deposit 20% of amount for purpose of entertaining adjudication of appeal. 5. Having heard learned Counsel for parties and appraised paper book, I am of view that argument of petitioner is in consonance with findings rendered in judgment referred to above and reiterated by Division Bench. assessing officer or appellate authority while exercising power of appeal or stay of assessment proceedings under section 226 of Income Act 1961 are enjoined obligation to give regard and respect to directions of Hon'ble High Court. In other words, it would not be necessary that payment of 20% can be dispensed with only if there is order of high court. judgment of Full Bench followed by Division Bench has enuring effect on all authorities. There will be direction to 1st respondent to decide WP(C).No.10227 OF 2020(C) 4 appeal on merits within period of six months, without asking for 20% of demanded amount, after affording opportunity of hearing to petitioner and revenue and pass reasonable and speaking order. writ petition is disposed of. Sd/- AMIT RAWAL JUDGE Jm/ WP(C).No.10227 OF 2020(C) APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF ASSESSMENT ORDER DATED 19.12.2019 ALONG WITH COMPUTATION SHEET. EXHIBIT P2 TRUE COPY OF DEMAND NOTICE DATED 19.12.2019. EXHIBIT P3 TRUE COPY OF APPEAL DATED 16.1.2020. EXHIBIT P4 TRUE COPY OF STAY PETITION DATED 18.03.2020. EXHIBIT P5 TRUE COPY OF JUDGMENT DATED 1.07.2019 IN W.A.1536 OF 2019. Aranattukara Oriental Service Co-Operative Bank Ltd. v. Commissioner of Income-tax (Appeals), Thrissur / Income-tax Officer, Ward 2(1), Thrissur