THE ANGADIPPURAM SERVICE CO-OPERATIVE BANK LTD NO. P 581 vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

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WP(C)/26602/2020HC KeralaKLHC01065731202001 December 2020Author: HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, considering the facts and circumstances and the submissions made, and noting that in similar matters it has directed the Appellate Authority to consider and pass orders on appeals while staying recovery of disputed amounts, disposed of the writ petition. The 3rd respondent (Income Tax Appellate Tribunal) was directed to consider and pass orders on Ext.P3 appeal within an outer time limit of six months from the date of receipt of a copy of the judgment, after hearing the petitioner. Recovery steps for amounts confirmed against the petitioner by Ext.P1 assessment order were to be kept in abeyance until orders were passed by the 3rd respondent and communicated to the petitioner. The petitioner was directed to produce a copy of the writ petition and the judgment before the 3rd respondent for further action. No specific issue regarding the merits of the Section 80P deduction was decided.

What were the facts?

The petitioner, Angadippuram Service Co-operative Bank Ltd., is challenging an assessment order (Ext.P1) under the Income Tax Act. Their first appeal before the Commissioner of Income Tax (Appeals) was dismissed by order Ext.P2. Subsequently, the petitioner filed a further appeal (Ext.P3) along with a stay petition (Ext.P4) before the Income Tax Appellate Tribunal (3rd respondent). The core issue concerns the permissibility of deduction under Section 80P of the Income Tax Act for Co-operative Societies. The petitioner points out that in similar cases, the High Court has directed the Appellate Authority to decide the appeal within a timeframe and to keep recovery proceedings in abeyance.

What were the issues?

1. Whether the High Court can direct the Income Tax Appellate Tribunal to consider and pass orders on an appeal within a specified time frame, and stay recovery proceedings pending the appeal's disposal, based on the facts and circumstances of the case and the petitioner's submissions. Assessee's Contention: The petitioner argues that in similar matters, the High Court has directed the Appellate Authority to consider the appeal within a time frame and to keep recovery proceedings for the disputed amounts in abeyance. They rely on this precedent to seek similar relief. Revenue's Contention: The judgment records that the learned Standing Counsel appeared for the respondents, but it does not explicitly detail their arguments or any specific authorities/precedents relied upon by the revenue.

Which sections of the Income-tax Act were involved?

Section 80P

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 TUESDAY, THE 01ST DAY OF DECEMBER 2020 / 10TH AGRAHAYANA, 1942 WP(C).No.26602 OF 2020(A) PETITIONER/S: THE ANGADIPPURAM SERVICE CO-OPERATIVE BANK LTD NO. P 581 ROSHINI PLAZA, ANGADIPPURAM, MALAPPURAM, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, KOZHIKODE, PIN - 673001. 2 THA INCOME TAX OFFICER, WARD (4), TIRUR, MALAPPURAM DISTRICT, PIN - 676001. 3 THE INCOME TAX APPELLATE TRIBUNAL KAKKANAD, KOCHI - 682037. OTHER PRESENT: SC: CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.12.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.26602 OF 2020(A) 2

JUDGMENT

Aggrieved by Ext.P1 assessment order under the Income Tax Act, the petitioner preferred an appeal before the first appellate authority. The same however came to be dismissed by Ext.P2 order. The petitioner therefore preferred Ext.P3 appeal together with Ext.P4 stay petition before the 3rd respondent. It is the case of the petitioner that the issue involved in the appeal is the permissibility of deduction under Section 80P of the Income Tax Act in its application to Co-operative Societies and in similar cases this Court has directed the Appellate Authority to consider the appeal itself within a time frame and to keep in abeyance the recovery proceedings for recovery of amount confirmed against the petitioner by Ext.P1 assessment order.

2.

I have heard the learned counsel appearing for the petitioner and also the learned Standing counsel appearing for the respondents.

On a consideration of the facts and circumstances of the case as also the submissions made across the Bar and taking note of the fact that in similar matters, this Court has directed the Appellate Authority to consider and pass orders in the appeal and stayed the recovery of disputed amounts pending disposal of the appeal, this Writ petition is disposed directing the 3rd respondent to consider and pass orders on Ext.P3 appeal within an outer time limit of six months from the date of receipt of a copy of this judgment, after hearing the petitioner. Recovery steps for recovery of amounts confirmed

WP(C).No.26602 OF 2020(A) 3 against the petitioner by Ext.P1 assessment order shall be kept in abeyance till such time as orders are passed by the 3rd respondent as directed above and communicated to the petitioner. The petitioner shall produce a copy of the writ petition together with a copy of this judgment, before the 3rd respondent, for further action. A.K.JAYASANKARAN NAMBIAR JUDGE SJ

WP(C).No.26602 OF 2020(A) 4

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 19.12.2019 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2017-18. EXHIBIT P2 COPY OF THE ORDER DATED 08.09.2020 ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2017-18 EXHIBIT P3 COPY OF THE APPEAL DATED 03.10.2020 FILED BY THE PETITIONER BEFORE THE INCOME TAX APPELLATE TRIBUNAL, KOCHI FOR THE ASSESSMENT YEAR 2017-18 EXHIBIT P4 COPY OF THE STAY PETITION DATED 18.11.2020 FILED BY THE PETITIONER BEFORE THE INCOME TAX APPELLATE TRIBUNAL, KOCHI FOR THE ASSESSMENT YEAR 2017-18

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