Annamanada Service Co-Operative Bank Limited v. Commissioner of Income Tax (Appeals) and Income Tax Officer, Ward (2), Thrissur

Case Details & Bench

Court: High Court of Kerala
Hon'ble Judges: N. Nagareesh
Judgment Date: 2019-09-17
Court Decision / Holding: disposed of with directions: to consider and pass appropriate orders on Ext.P2 appeals expeditiously and to refrain from coercive steps against the petitioner-bank till the appeals are disposed of.
Final Disposition: Disposed of

Parties to the Case

Appellants / Petitioners

Annamanada Service Co-Operative Bank Limited No.159, Annamanada, Chalakudy Taluk, Thrissur District, represented by its Secretary

Respondents

Commissioner of Income Tax (Appeals), Ayakar Bhavan, Shaktan Nagar, Thrissur, Pin-680 001
Income Tax Officer, Ward (2), Shaktan Nagar, Thrissur, Pin-680 001

Legal Representation & Advocates

Counsels for Petitioners

• Sri. O.D. Sivadas

Counsels for Respondents

• Sri. Jose Joseph – Standing Counsel

Case Synopsis & Summary

These writ petitions challenge income tax assessments issued for the years 2009-10, 2010-11, 2015-16 and 2016-17 against Annamanada Service Co-operative Bank Limited and the consequent notices under Section 221(1) of the Income Tax Act seeking recovery. The petitioner bank, registered under the Kerala Cooperative Societies Act, submits that, in similar circumstances, the Kerala High Court has directed that appellate authority consider the bank’s statutory appeals before any coercive recovery action is taken and pending disposal of the appeals. In support of this position, the petitions cite decisions in W.P.(C) No.13364/2019 and W.A. No.1529/2019, as well as the Full Bench decision in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut (2019 (2) KHC 287). After hearing counsel for the petitioner and the Standing Counsel for the Department, the Court finds merit in adopting a similar approach. Accordingly, the writ petitions are disposed of directing the 1st Respondent – Appellate Authority to consider and pass appropriate orders on the Ext.P2 appeals as expeditiously as possible, and to refrain from any coercive steps against the petitioner Bank pending disposal of the appeals. The decision aligns with the aim of ensuring timely adjudication of appeals without coercive recovery during pendency. The order reflects a consistent pattern of safeguarding the petitioner's rights while expediting appellate consideration.

Provisions of Law Cited

Income Tax Act, 1961Section 221(1) of the Income Tax Act, 1961Kerala Cooperative Societies Act

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner-bank contends that in identical cases the court has directed the appellate authority to consider the bank's statutory appeals first and not to resort to coercive recovery steps pending disposal of the appeals; cites W.P.(C) No.13364/2019 and W.A. No.1529/2019 as supportive precedents and relies on the Full Bench decision in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut (2019 (2) KHC 287).

Contentions of Respondents

Not stated in the provided excerpt.

Cited Precedents (3)

Case Name	Citation	Treatment	Explanation
The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut	2019 (2) KHC 287	Positive	Noted and relied upon as controlling or persuasive authority to direct appellate consideration before coercive recovery, informing the court's disposition.
W.P.(C) No.13364/2019	W.P.(C). No.13364/2019	Positive	Identical case cited where court directed appellate consideration prior to coercive steps.
W.A. No.1529/2019	W.A. No.1529/2019	Positive	Division Bench decision directing prompt disposal of statutory appeals taking note of the Full Bench decision.

Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR.JUSTICE N.NAGARESH** **TUESDAY, THE 17TH DAY OF SEPTEMBER 2019 / 26TH BHADRA, 1941** ## **WP(C).No.24618 OF 2019(B)** ## **PETITIONER:** **ANNAMANADA SERVICE CO-OPERATIVE BANK LIMITED NO.159, ANNAMANADA ,CHALAKUDY TALUK, THRISSUR DISTRICT, REPRESENTED BY ITS SECRETARY.** ## **BY ADV. SRI.O.D.SIVADAS** ## **RESPONDENTS:** **1 THE COMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN, SHAKTAN NAGAR, THRISSUR,PIN-680 001.** - **2 THE INCOME TAX OFFICER, WARD (2), SHAKTAN NAGAR, THRISSUR,PIN-680 001.** ## **SRI. JOSE JOSEPH -STANDING COUNSEL** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.09.2019, ALONG WITH WP(C).24621/2019(C), WP(C).24622/2019(C), WP(C).24623/2019(C), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **W.P.(C) No. 24618/2019 and connected cases 2** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR.JUSTICE N.NAGARESH** **TUESDAY, THE 17TH DAY OF SEPTEMBER 2019 / 26TH BHADRA, 1941** ## **WP(C).No.24621 OF 2019(C)** ## **PETITIONER:** **ANNAMANADA SERVICE CO-OPERATIVE BANK LIMITED NO.159, ANNAMANADA, CHALAKUDY TALUK, THRISSUR DISTRICT, REPRESENTED BY ITS SECRETARY.** **BY ADV. SRI.O.D.SIVADAS** ## **RESPONDENTS:** **1 THE COMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN, SHAKTAN NAGAR, THRISSUR,PIN-680 001 2 THE INCOME TAX OFFICER, WARD (2),SHAKTAN NAGAR, THRISSUR,PIN-680 001** ## **SRI.JOSE JOSEPH -STANDING COUNSEL** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.09.2019, ALONG WITH WP(C).24618/2019(B), WP(C).24622/2019(C), WP(C).24623/2019(C), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **W.P.(C) No. 24618/2019 and connected cases 3** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR.JUSTICE N.NAGARESH** **TUESDAY, THE 17TH DAY OF SEPTEMBER 2019 / 26TH BHADRA, 1941** ## **WP(C).No.24622 OF 2019(C)** ## **PETITIONER:** **ANNAMANADA SERVICE CO-PERATIVE BANK LIMITED NO.159 ANNAMANADA, CHALAKUDY TALUK, THRISSUR DISTRICT, REPRESENTED BY ITS SECRETARY.** **BY ADV. SRI.O.D.SIVADAS** ## **RESPONDENTS:** **1 THE COMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN,SHAKTAN NAGAR, THRISSUR,PIN-680 001 2 THE INCOME TAX OFFICER, WARD (2), SHAKTAN NAGAR, THRISSUR,PIN-680 001** ## **SRI. JOSE JOSEPH -STANDING COUNSEL** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.09.2019, ALONG WITH WP(C).24618/2019(B), WP(C).24621/2019(C), WP(C).24623/2019(C), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **W.P.(C) No. 24618/2019 and connected cases 4** **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE N.NAGARESH** **TUESDAY, THE 17TH DAY OF SEPTEMBER 2019 / 26TH BHADRA, 1941** ## **WP(C).No.24623 OF 2019(C)** ## **PETITIONER:** **ANNAMANADA SERVICE CO-OPERATIVE BANK LIMITED NO. 159, ANNAMANADA, CHALAKUDY TALUK, THRISSUR DISTRICT, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS** ## **RESPONDENTS:** **1 THE COMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN, SHAKTAN NAGAR, THRISSUR, PIN - 680 001. 2 THE INCOME TAX OFFICER WARD (2), SHAKTAN NAGAR, THRISSUR, PIN - 680 001.** ## **SRI. JOSE JOSEPH -STANDING COUNSEL** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.09.2019, ALONG WITH WP(C).24618/2019(B), WP(C).24621/2019(C), WP(C).24622/2019(C), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **W.P.(C) No. 24618/2019 and connected cases 5** ## **JUDGMENT** **[WP(C).24618/2019, WP(C).24621/2019, WP(C).24622/2019, WP(C).24623/2019 ]** These writ petitions have been filed by the petitioner which is a Service Co-operative Bank registered under the Kerala Cooperative Societies Act. Income tax assessment orders have been issued in respect of the Bank for the years 2009-10, 2010-11, 2016-17 and 2015-16. Aggrieved by the assessment orders, the petitioner - Bank has filed Ext.P2 appeals. Pending these appeals, the Income Tax Officer has issued Ext.P3 notices under Section 221(1) of the Income Tax Act, 1961 seeking recovery of the amount of assessment. 2. The learned counsel for the petitioner points out that in an identical case, i.e., W.P. (C) No.13364/2019, this Court has passed orders directing the appellate authority to consider the appeals preferred by the Bank first and not to take any coercive steps till the finalisation of the appeal. In judgment in W.A. No.1529/2019, an identical case, a Division Bench of this Court directed the Commissioner of Income Tax (Appeals) to consider ## **W.P.(C) No. 24618/2019 and connected cases 6** and dispose of statutory appeals filed by the appellant therein at the earliest taking note of the Full Bench decision in _**The Mavilayi Service Co-operative bank Ltd. v. The Commissioner of Income Tax, Calicut** [2019 (2) KHC 287]_ . 3. Heard learned counsel for the petitioner and learned Standing Counsel for the Department of Income Tax. 4. After perusing the pleadings, I feel that these writ petitions also can be disposed of in similar manner. Accordingly, these writ petitions are disposed of directing the 1[st] respondent - Appellate Authority to consider and pass appropriate orders on Ext.P2 appeals, as expeditiously as possible and it is further directed that further steps of coercive nature shall not be resorted to against the petitioner - Bank till the appeals are disposed of. **Sd/-** ## **N.NAGARESH** **JUDGE** msp **W.P.(C) No. 24618/2019 and connected cases 7** ## **APPENDIX OF WP(C) 24618/2019** ## **PETITIONER'S/S EXHIBITS:** **EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 29.06.2016 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2009-10** **EXHIBIT P2 COPY OF THE APPEAL DATED 25.08.2016 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2009-10** **EXHIBIT P3 COPY OF THE PROCEEDINGS DATED 2.09.2019 ISSUED BY THE 2ND RESPONDENT** ## **RESPONDENTS EXHIBITS:NIL** ## **APPENDIX OF WP(C) 24621/2019** **PETITIONER'S/S EXHIBITS:** **EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 30.06.2017 ISSUED BY THE 2ND RESPONDENT FOR THE YEAR PERIOD 2010-11** **EXHIBIT P2 COPY OF THE APPEAL DATED 31.07.2017 FILE BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2010-11** **EXHIBIT P3 COPY OF THE PROCEEDINGS DATED 2.09.2019 ISSUED BY THE 2ND RESPONDENT** **RESPONDENTS EXHIBITS:NIL** ## **APPENDIX OF WP(C) 24622/2019** ## **PETITIONER'S/S EXHIBITS:** **EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DAD 22.12.2018 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2016-17** ## **W.P.(C) No. 24618/2019 and connected cases 8** **EXHIBIT P2** **COPY OF THE APPEAL DATED 20.01.2019 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2016-17** **EXHIBIT P3 COPY OF THE PROCEEDING DATED 2.09.2019 ISSUED BY THE 2ND RESPONDENT** ## **RESPONDENTS EXHIBITS:NIL** ## **APPENDIX OF WP(C) 24623/2019** ## **PETITIONER'S/S EXHIBITS:** **EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 10.11.2017 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2015-16. EXHIBIT P2 COPY OF THE APPEAL DATED 04.01.2018 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2015-16. EXHIBIT P3 COPY OF THE PROCEEDINGS DATED 02.09.2019 ISSUED BY THE 2ND RESPONDENT.** ## **RESPONDENTS EXHIBITS:NIL** **//TRUE COPY//** **P.A. TO JUDGE**