No Direction to Refund of Income Tax as the tax Amount already Realised from Account of Co-operative Society: Kerala HC directs to Dispose Appeal Expeditiously [Read Order]

The Kerala High Court directed to dispose appeal expeditiously as direction cannot be given to refund income tax as the tax amount was already realised from the account of the assessee, the Cooperative Society.

Kadavalloor Service Co-Operative Bank Ltd, the petitioner, an Agricultural Credit Co-operative Society filed writ petition challenging the assessment order dated 31.12.2015 which 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) were separately initiated.

An assessment order was passed on 19.11.2018 under Section 143(3) read with Section 147 for the assessment year 2010-11, assessing the petitioner’s total income 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.

Against the dismissal of the same, the petitioner has filed appeals under Section 253 before the Income Tax Appellate Tribunal 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.

Standing Counsel for the State Bank of India submitted 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.

It was found that the tax amount has already been realised from the account of the petitioner maintained in the State Bank of India, therefore the single-member bench comprising of Justice Dinesh Kumar Singh  held that “the 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, preferably within three months.”

To Read the full text of the Order CLICK HERE

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