KADAVALLOOR SERVICE CO-OPERATIVE BANK LTD. NO. 3821 vs. THE INCOME TAX OFFICER

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WP(C)/31660/2023HC KeralaKLHC01070233202327 September 2023Bench: HONOURABLE MR. JUSTICE D. K. SINGH7 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that it could not direct the refund of the tax amount since the tax had already been realized from the petitioner's bank account in the State Bank of India. The Court noted that the petitioner's appeals were pending before the Income Tax Appellate Tribunal (ITAT). Therefore, the writ petitions were disposed of with a specific direction to the ITAT to dispose of the pending appeals filed by the petitioner expeditiously. The preferred timeline for the ITAT to decide the appeals was within a period of three months from the date of receipt of a copy of the High Court's judgment. No specific finding was made on the merits of the assessment orders or the penalty proceedings, as the High Court's intervention was limited to the procedural aspect of the realization of tax and the pending appeals.

What were the facts?

The petitioner, Kadavalloor Service Co-operative Bank Ltd., filed two writ petitions before the High Court of Kerala. WP(C) No. 31648/2023 concerned an assessment order dated 31.12.2015 for assessment year 2008-2009, passed under Section 144 of the Income Tax Act, 1961, assessing total income at Rs. 1,15,140/-. Penalty proceedings under Sections 271F, 271B, and 271(1)(C) were also initiated. WP(C) No. 31660/2023 related to an order dated 19.11.2018 under Section 143(3) read with Section 147 for assessment year 2010-11, assessing total income at Rs. 30,08,820/- with tax and interest of Rs. 26,87,180/-. Appeals against these orders were dismissed by the Commissioner of Income Tax Appeals. The petitioner then filed appeals before the Income Tax Appellate Tribunal (ITAT). While the appeals were pending before the ITAT, garnishee notices were issued, and the petitioner's bank account with the State Bank of India was attached. The bank remitted Rs. 27,77,170/- to the Income Tax Department.

What were the issues?

1. Whether the High Court can direct the refund of tax amount already realized from the petitioner's bank account, given that the appeals are pending before the Income Tax Appellate Tribunal? (Question of law and fact) The petitioner, Kadavalloor Service Co-operative Bank Ltd., argued that its appeals were pending before the ITAT and that it had not obtained any interim order. Garnishee notices were issued, leading to the attachment of its bank account. The State Bank of India, as respondent No. 2, submitted that it had already remitted Rs. 27,77,170/- to the Income Tax Department in respect of the garnishee notices for both assessment years. The Revenue, represented by the Income Tax Officer, did not record any specific arguments in the judgment regarding the refund or the ITAT proceedings, but their actions (issuing garnishee notices and receiving funds) were noted.

Which sections of the Income-tax Act were involved?

Section 144,Section 143(3),Section 147,Section 271F,Section 271B,Section 271(1)(C),Section 253

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C) NO. 31648 OF 2023
WP(C).31660/2023

Read from the judgment's own cause title. This page is filed under one of them.

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 27TH DAY OF SEPTEMBER 2023 / 5TH ASWINA, 1945 WP(C) NO. 31648 OF 2023 PETITIONER: KADAVALLOOR SERVICE CO-OPERATIVE BANK LTD. NO. 3821 KADAVALLOOR, P.O.KADAVALLUR THRISSUR DISTRICT , REPRESENTED BY ITS SECRETARY., PIN - 680543 BY ADV P.C.SASIDHARAN RESPONDENTS: 1 THE INCOME TAX OFFICER WARD I & TPS, INCOME TAX OFFICE, CITY PLAZA, WEST NADA, GURUVAYOOR, PIN - 680101 2 STATE BANK OF INDIA PERUMPILAVU BRANCH, TRIVENI PLAZA, PERUMPILAVU, THRISSUR, PIN - 680519 ADV.A. KUMAR- SBI ADV.JOSE JOSEPH – INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.09.2023, ALONG WITH WP(C).31660/2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WPC Nos.31648 & 31660 of 2023 2 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 27TH DAY OF SEPTEMBER 2023 / 5TH ASWINA, 1945 WP(C) NO. 31660 OF 2023 PETITIONER: KADAVALLOOR SERVICE CO-OPERATIVE BANK LTD. NO. 3821 KADAVALLOOR, P.O.KADAVALLUR THRISSUR DISTRICT REPRESENTED BY ITS SECRETARY., PIN - 680543 BY ADV P.C.SASIDHARAN RESPONDENTS: 1 THE INCOME TAX OFFICER WARD I & TPS, INCOME TAX OFFICE, CITY PLAZA, WEST NADA, GURUVAYOOR, PIN - 680101 2 STATE BANK OF INDIA PERUMPILAVU BRANCH, TRIVENI PLAZA, PERUMPILAVU, THRISSUR, PIN - 680519 ADV.A. KUMAR- SBI ADV.JOSE JOSEPH – INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.09.2023, ALONG WITH WP(C).31648/2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WPC Nos.31648 & 31660 of 2023 3 JUDGMENT Dated this the 27th day of September, 2023 1. These writ petitions have been filed under Article 226 of the Constitution of India by the petitioner, an Agricultural Credit Co-operative Society. Ext.P1 assessment order dated 31.12.2015 in W.P.(C.) No.31648/2023 was passed regarding the income of the petitioner for the assessment year 2008-2009 under Section 144 of the Income Tax Act, 1961. The petitioner’s total income was assessed as Rs.1,15,140/-. Therefore, penalty proceedings under Sections 271F, 271B and 271(1) (C) was separately initiated. 2. In W.P.(C.) No.31660/2023 Ext.P1 order was passed on 19.11.2018 under Section 143(3) read with Section 147 for the assessment year 2010-11, assessing the the petitioner’s total income was assessed as Rs.30,08,820/- on which tax and interest as Rs.26,87,180/- were levied. The petitioner challenged the assessment orders before the Commissioner of Income Tax Appeals. The Appellate Authority has dismissed the appeals.

WPC Nos.31648 & 31660 of 2023 4 Against the dismissal of the same, petitioner has filed appeals under Section 253 before the Income Tax Appellate Tribunal as Exts.P5 and P6 in respect of the assessment year 2008-9 and 2010-11 respectively. However, the petitioner has not been granted any interim order and garnishee notices were issued by the Department and the petitioner’s bank account in the State Bank of India was attached. 3. Learned Standing Counsel for the State Bank of India submits that the bank has already remitted an amount of Rs.27,77,170/- in respect of the garnishee notices to the Department in respect of both assessment years. 4. Considering the fact that the tax amount has already been realised from the account of the petitioner maintained in the State Bank of India, this Court cannot direct to refund of the tax amount and therefore, the present writ petitions are disposed of with a direction to the Income Tax Appellate Tribunal to dispose of the pending appeals filed by the petitioner, expeditiously,

WPC Nos.31648 & 31660 of 2023 5 preferably within a period of three months from the date of receipt of a copy of this judgment. Sd/- DINESH KUMAR SINGH JUDGE AP

WPC Nos.31648 & 31660 of 2023 6 APPENDIX OF WP(C) 31648/2023 PETITIONER EXHIBITS Exhibit P1 THE TRUE COPY OF THE ASSESSMENT ORDER DATED 31/12/2015 ALONG WITH THE STATEMENT OF CALCULATION Exhibit P2 THE TRUE COPY OF THE DEMAND NOTICE DATED 31/12/2015 Exhibit P3 THE TRUE COPY OF THE APPEAL MEMORANDUM DATED 03/02/2016 Exhibit P4 THE TRUE COPY OF THE ORDER DATED 29/5/2023 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS) Exhibit P5 THE TRUE COPY OF THE APPEAL DATED 6/9/2023 FILED BY THE PETITIONER BEFORE THE INCOME TAX APPELLATE TRIBUNAL Exhibit P6 THE TRUE COPY OF THE ACKNOWLEDGEMENT OF E- FILING OF INCOME TAX APPEAL DATED 7/9/2023 Exhibit P7 THE TRUE COPY OF THE STAY PETITION DATED 19/9/2023 FILED BY THE PETITIONER BEFORE THE APPELLATE TRIBUNAL Exhibit P8 THE TRUE COPY OF THE ACKNOWLEDGEMENT OF E- FILING OF STAY APPLICATION DATED 19/9/2023 Exhibit P9 THE TRUE COPY OF THE PETITION DATED 21/9/2023 FILED BY THE PETITIONER BEFORE THE APPELLATE TRIBUNAL Exhibit P10 THE TRUE COPY OF THE NOTICE DATED 18/9/2023 ISSUED BY THE 1ST RESPONDENT Exhibit P11 THE TRUE COPY OF THE STATEMENT OF ACCOUNTS FURNISHED BY THE 2ND RESPONDENT Exhibit P12 THE TRUE COPY OF THE JUDGMENT DATED 20/01/2020 IN W.A.NO. 2488 OF 2019 Exhibit P13 THE TRUE COPY OF THE JUDGMENT IN W.P(C).NO. 8822/2020 DATED 23/03/2020

WPC Nos.31648 & 31660 of 2023 7 APPENDIX OF WP(C) 31660/2023 PETITIONER EXHIBITS Exhibit P1 THE TRUE COPY OF THE ASSESSMENT ORDER DATED 19/11/2018 ALONG WITH THE STATEMENT OF CALCULATION Exhibit P2 THE TRUE COPY OF THE DEMAND NOTICE DATED 19/11/2018 Exhibit P3 THE TRUE COPY OF THE APPEAL MEMORANDUM DATED 28/12/2018 Exhibit P4 THE TRUE COPY OF THE JUDGMENT DATED 18/3/2020 IN W.P(C) NO.8577/2020 Exhibit P5 THE TRUE COPY OF THE ORDER DATED 31/5/2023 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS) Exhibit P6 THE TRUE COPY OF THE APPEAL DATED 7/9/2023 FILED BY THE PETITIONER BEFORE THE INCOME TAX APPELLATE TRIBUNAL Exhibit P7 THE TRUE COPY OF THE ACKNOWLEDGEMENT OF E- FILING OF INCOME TAX APPEAL DATED 9/8/2023 Exhibit P8 THE TRUE COPY OF THE STAY PETITION DATED 19/9/2023 FILED BY THE PETITIONER BEFORE THE APPELLATE TRIBUNAL Exhibit P9 THE TRUE COPY OF THE ACKNOWLEDGEMENT OF E- FILING OF STAY APPLICATION DATED 19/9/2023 Exhibit P10 THE TRUE COPY OF THE PETITION DATED 21/9/2023 FILED BY THE PETITIONER BEFORE THE APPELLATE TRIBUNAL Exhibit P11 THE TRUE COPY OF THE NOTICE DATED 18/9/2023 ISSUED BY THE 1ST RESPONDENT Exhibit P12 THE TRUE COPY OF THE STATEMENT OF ACCOUNTS FURNISHED BY THE 2ND RESPONDENT Exhibit P13 THE TRUE COPY OF THE JUDGMENT DATED 20/01/2020 IN W.A.NO. 2488 OF 2019 Exhibit P14 THE TRUE COPY OF THE JUDGMENT IN W.P(C).NO.8822/2020 DATED 23/03/2020

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