UZHAMALACKAL SERVICE CO-OPERATIVE BANK LTD vs. THE CENTRAL BOARD OF DIRECT TAXES

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WP(C)/31360/2019HC KeralaKLHC01081888201906 December 2019Author: HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR4 pages
AI SummaryClosed

What did the High Court hold?

The High Court took note of the documents filed by the petitioner and found that by virtue of Ext.P11 order, which had since been passed by the respondents, there would be no recovery action justifiable against the petitioner for the assessment year 2011-12 under the Income Tax Act. Consequently, the writ petition was closed by making the interim order absolute. The reasoning is that the subsequent order (Ext.P11) rendered the recovery action unsustainable. The ratio decidendi is that a subsequent order by the tax authorities that negates the basis for recovery action must be respected, leading to the closure of proceedings challenging such recovery.

What were the facts?

The petitioner, Uzhamalackal Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala. The petition challenged an action or order by the respondents, which included the Central Board of Direct Taxes, Income Tax Officer, and Commissioner of Income Tax (Appeals). The assessment year in question is 2011-12. The petitioner sought relief from recovery actions. The procedural history indicates that an interim order was in place, and subsequently, an order (Ext.P11) was passed by the respondents. The High Court considered documents filed by the petitioner in I.A.No.1/2019.

What were the issues?

1. Whether recovery action against the petitioner for assessment year 2011-12 is justifiable under the Income Tax Act, in light of Ext.P11 order passed by the respondents. Assessee's contention: The petitioner argued that no recovery action should be taken against them for the assessment year 2011-12. They relied on Ext.P11 order, which they contended rendered any such recovery action unjustifiable. Revenue's contention: The judgment does not record any specific contentions from the revenue regarding the justification of recovery action. The court's decision was based on the Ext.P11 order.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR FRIDAY, THE 06TH DAY OF DECEMBER 2019 / 15TH AGRAHAYANA, 1941 WP(C).No.31360 OF 2019(T) PETITIONER/S: UZHAMALACKAL SERVICE CO-OPERATIVE BANK LTD NO.T.298, PUTHUKULANGARA P.O. THIRUVANANTHAPURAM REPRESENTED BY ITS SECRETARY, ASHA K.S. BY ADVS. DR.K.P.PRADEEP SRI.SANAND RAMAKRISHNAN SRI.T.T.BIJU SMT.T.THASMI SMT.NANDINI R.S. RESPONDENT/S: 1 THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK NEW DELHI 110 001, REPRESENTED BY ITS CHAIRMAN. 2 INCOME TAX OFFICER,WARD 2(3) THIRUVANANTHAPURAM, DEPARTMENT OF INCOME TAX, AAYAKKAR BHAVAN, KOWADIAR THIRUVANANTHAPURAM 695 001. 3 COMMISSIONER OF INCOME TAX (APPEALS) DEPARTMENT OF INCOME TAX, THIRUVANANTHAPURAM, AAYAKAR BHAVAN, PRESS CLUB ROAD, THIRUVANANTHAPURAM. 695 001. 4 INCOME TAX OFFICER, WARD 2(3)(I/C), JOINT COMMISSIONER OF INCOME TAX, RANGE -2, 1ST FLOOR, AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM 695 001. WP(C).No.31360 OF 2019(T) 2 5 THE THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK HEAD OFFICE, THIRUVANANTHAPURAM EAST FORT P.O. THIRUVANANTHAPURAM 695 023, REPRESENTED BY ITS GENERAL MANAGER. R5 BY SRI.THOMAS ABRAHAM, SC THIRUVANANTHAPURAM DIST. CO.OP BANK SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.12.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.31360 OF 2019(T) 3

JUDGMENT Taking note of the documents filed by the petitioner along with I.A.No.1/2019 and finding that by virtue of Ext.P11 order that has since been passed by the respondents there would be no recovery action justifiable against the petitioner for the assessment year 2011-12 under the Income Tax Act, the writ petition is closed by making the interim order absolute. A.K.JAYASANKARAN NAMBIAR JUDGE WP(C).No.31360 OF 2019(T) 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE CERTIFICATE ISSUED BY THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM TO THE PETITIONER. EXHIBIT P2OF THE RETURN FOR THE YEAR 2011- 12 IN PAN AAAAU2695Q. EXHIBIT P3OF THE ASSESSMENT ORDER NO. AAAAU2695Q DATED 18.12.2017 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER FOR THE ASSESSMENT YEAR 2011-12. EXHIBIT P4OF THE ORDER IN APPEAL NO ITA NO. 152/EF/TVM/CIT(A)/TVM /2017-18 DATED 18.12.2018 FOR THE YEAR 2011-12 BEFORE THE 3RD RESPONDENT. EXHIBIT P5OF THE ORDER DATED 14.3.2019 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P6OF THE ORDER ITA NO. 152/EF/TVM/CIT(A)/TVM/2017-18 DATED 03.09.2019 FOR THE YEAR 2011-12 BEFORE THE 3RD RESPONDENT. EXHIBIT P7OF THE MEMORANDUM OF APPEAL DATED 24-11-2019 WITHOUT ANNEXURE FILED BEFORE THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH FOR THE ASSESSMENT YEAR 2011-12 EXHIBIT P8 COPY OF THE STAY APPLICATION IN EXT P7 APPEAL DATED 24-11-2019 EXHIBIT P-9OF THE ORDER DATED 27-12-2018 ISSUED BY THE 2ND RESPONDENT UNDER S. 154 FOR THE ASSESSMENT YEAR 2011-12. EXHIBIT P10OF THE ORDER DATED 11.1.2019 ISSUED UNDER S.154 BY THE 2ND RESPONDENT FOR THE ASSESSMENT YEAR 2011-12 EXHIBIT P11OF THE ORDER DATED 15-10-2019 ISSUED BY THE 2ND RESPONDENT FOR THE ASSESSMENT YEAR 2011-12.

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