Pulamanthole Service Co-operative Bank Limited vs. THE NATIONAL FACELESS APPEAL CENTRE,

WP(C)/3667/2023HC KeralaKLHC01008838202303 February 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What were the facts?

The petitioner, Pulamanthole Service Co-operative Bank Limited, filed a writ petition challenging recovery steps initiated based on an assessment order (Ext.P1). The petitioner contended that they were unable to upload an application for stay against this assessment order. The assessment order was challenged in appeal (Ext.P2). The Standing Counsel for the Income-tax Department pointed out that the assessment order involved issues beyond deductions under Section 80P of the Income-tax Act, suggesting the petitioner's remedy was to file a stay application in the pending appeal. The Court noted the petitioner's reliance on a previous judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, but acknowledged the broader scope of the current assessment.

What did the High Court hold?

The High Court directed the respondents (National Faceless Appeal Centre and other Income-tax authorities) to provide a link to the petitioner for uploading their stay application within one month. Upon the petitioner uploading the stay application, the respondents are to consider and pass orders on it, after hearing the petitioner, within one month thereafter. Crucially, the Court ordered that coercive steps for recovery shall be kept in abeyance until the disposal of the stay application. The Court did not decide on the merits of the assessment order or the stay application itself, but rather facilitated the process for the petitioner to pursue their remedy.

What were the issues?

1. Whether the petitioner is entitled to a direction for a link to upload a stay application, given their inability to do so previously, and the pendency of an appeal against the assessment order? Assessee's Contention: The petitioner argued that they are aggrieved by recovery steps based on an assessment order that is under challenge in appeal, and they could not upload their stay application. They initially sought relief based on a precedent concerning Section 80P deductions. Revenue's Contention: The revenue submitted that the assessment order pertains to issues other than deductions under Section 80P, and therefore, the petitioner's appropriate remedy is to file a stay application in the pending appeal. The revenue did not dispute the pendency of the appeal or the assessment order itself.

Which sections of the Income-tax Act were involved?

Section 80P

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI FRIDAY, THE 3RD DAY OF FEBRUARY 2023 / 14TH MAGHA, 1944 WP(C) NO. 3667 OF 2023 PETITIONER/S: PULAMANTHOLE SERVICE CO-OPERATIVE BANK LIMITED NO.F 1565, PULAMANTHOLE.P.O., MALAPPURAM DISTRICT, PIN – 679323 REPRESENTED BY ITS SECRETARY. BY ADV O.D.SIVADAS RESPONDENTS: 1 THE NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, NEW DELHI, PIN - 110001 REPRESENTED BY THE PRINCIPAL CHIEF COMMISSIONER. 2 THE ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, NEW DELHI, PIN - 110001 3 THE INCOME TAX OFFICER AYKAR BHAVAN, WARD 4, TIRUR, MALAPPURAM DISTRICT, PIN 676 001. BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.02.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 3667 OF 2023 2 T.R. RAVI, J. -------------------------------------------- W. P. (C). No.3667 of 2023 -------------------------------------------- D

The order continues below.

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