KURUVAMBALAM SERVICE CO OPERATIVE BANK LTD. vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/2928/2018HC KeralaKLHC01034518201812 February 2018Author: HONOURABLE MR. JUSTICE P.B.SURESH KUMAR4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition by directing the appellate authority to take a decision on the stay petition (Exhibit P4) filed by the petitioner in its appeal (Exhibit P2) against the assessment order (Exhibit P1). This decision is to be made having regard to the ITAT's decision (Exhibit P3). The Court further directed that until an order is passed on the stay petition, further proceedings for the realization of amounts covered by the assessment order shall be deferred. The High Court did not decide the merits of the appeal itself, but rather directed the appellate authority to consider the stay application in light of the ITAT's precedent.

What were the facts?

The petitioner, Kuruvambalam Service Co-operative Bank Ltd., is a co-operative society. For the assessment year 2015-16, its self-assessment was revised by the Income Tax Officer through an order under Section 143(3) of the Income Tax Act, 1961 (Exhibit P1). The petitioner filed an appeal (Exhibit P2) against this order before the Commissioner of Income Tax (Appeals) (the first respondent). The petitioner contended that the issue in its appeal is covered in its favor by a decision of the Income Tax Appellate Tribunal, Kochi (Exhibit P3). The petitioner also filed a stay petition (Exhibit P4) before the appellate authority. The writ petition was filed seeking directions to the appellate authority to dispose of the appeal in light of the ITAT's decision.

What were the issues?

1. Whether the appellate authority should be directed to dispose of the petitioner's appeal against the assessment order for AY 2015-16, considering the decision of the Income Tax Appellate Tribunal, Kochi. Assessee's Contentions: The petitioner argued that the issue raised in its appeal before the Commissioner of Income Tax (Appeals) is covered in its favor by Exhibit P3, a decision of the Income Tax Appellate Tribunal, Kochi. Therefore, it sought a direction for the appellate authority to dispose of the appeal in light of this ITAT decision. Revenue's Contentions: The judgment does not record any specific contentions from the revenue.

Which sections of the Income-tax Act were involved?

Section 143(3)

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 P.B.SURESH KUMAR MONDAY, THE 12TH DAY OF FEBRUARY 2018 / 23RD MAGHA, 1939 WP(C).No. 2928 of 2018 PETITIONER(S) THE KURUVAMBALAM SERVICE CO-OPERATIVE BANK LTD. F 1638, CHEMMALASSERY P.O., MALAPPURAM, REPRESENTED BY ITS SECRETARY. BY ADV.SRI.O.D.SIVADAS RESPONDENT(S): 1. THE COMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN, KOZHIKODE-673 001. 2. THE INCOME TAX OFFICER, WARD (4) TIRUR-676 001. R BY SRI.CHRISTOPHER ABRAHAM, SC INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12-02-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: DG WP(C).No. 2928 of 2018 (M) APPENDIX PETITIONER(S)' EXHIBITS EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 21-12-2017 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2015-16. EXHIBIT P2 COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2015-16. EXHIBIT P3 COPY OF THE SAID ORDER DATED 10-01-2018 ISSUED BY THE ITAT, COCHIN BENCH. EXHIBIT P4 COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2015-16. RESPONDENT'S EXHIBITS-NIL True copy P.A to Judge P.B.SURESH KUMAR, J. ------------------------------------------------------------------ W.P.C.No.2928 of 2018 ------------------------------------------------------------------- Dated this the 12th day of February, 2018

J U D G M E N T Petitioner is a Co-operative Society registered under the Kerala Co-operative Societies Act. The self assessment made by the petitioner under the Income Tax Act (the Act) for the year 2015-'16 has been revised in terms of Ext.P1 order under Section 143(3) of the Act. The petitioner challenged Ext.P1 order in appeal before the first respondent. According to the petitioner, the issue raised by the petitioner in the appeal is covered in their favour by Ext.P3 decision of the Income Tax Appellate Tribunal, Kochi. The petitioner, therefore, seeks directions to the appellate authority to dispose of the appeal preferred by the petitioner against Ext.P1 order, in the light of Ext.P3 decision of the Income Tax Appellate Tribunal, Kochi.

Heard the learned counsel for the petitioner as also the learned Standing Counsel for the respondents.

WPC.2928/2018 2

It is seen that the petitioner has preferred Ext.P4 application for stay in Ext.P2 appeal preferred against Ext.P1 order. In the circumstances, the writ petition is disposed of directing the appellate authority to take a decision on Ext.P4 application for stay preferred by the petitioner in Ext.P2 appeal, having regard to Ext.P3 decision of the Income Tax Appellate Tribunal. Needless to say that till orders are passed on the stay petition as directed above, further proceedings for realization of the amounts covered by Ext.P1 order shall be deferred. (P.B.SURESH KUMAR, JUDGE)P.A to Judge DG

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