PERAMANGALAM SERVICE CO-OPERATIVE BANK LTD vs. 1. ADDITIONAL /JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX OFFICER, NATIONAL E-AS

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WP(C)/23423/2022HC KeralaKLHC01048749202220 July 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala disposed of the writ petition by directing the 2nd respondent (Commissioner of Income Tax (Appeals)) to consider and pass orders on the stay petition (Ext.P3). The Court further directed that any demand arising from the assessment order (Ext.P1) shall be kept in abeyance until a decision is taken on the stay petition. The Court's decision is based on the fact that similar matters have been disposed of by directing coercive steps to be held back until the stay petition is decided. The substantive issue of the Section 80P exemption was not decided on merits by the High Court; it was deferred pending the decision on the stay petition by the appellate authority. No issue was expressly left undecided by the High Court, but the core issue of the Section 80P claim was not adjudicated.

What were the facts?

The petitioner, Peramangalam Service Co-operative Bank Ltd., filed an appeal (Ext.P2) along with a stay petition (Ext.P3) before the Commissioner of Income Tax (Appeals) against an assessment order (Ext.P1) for the assessment year 2017-18. The petitioner claims exemption under Section 80P of the Income Tax Act. The petitioner relies on the Supreme Court decision in Mavilayi Service Co-operative Bank Ltd. and others v. Commissioner of Income Tax and another, which they contend supports their claim. The High Court of Kerala considered the matter and noted that similar cases have been disposed of by directing coercive steps to be kept in abeyance until a decision is taken on the stay petition.

What were the issues?

1. Whether the petitioner is entitled to exemption under Section 80P of the Income Tax Act for the assessment year 2017-18? (Question of law) Assessee's Contention: The assessee argues that the issue of exemption under Section 80P is covered in their favour by the Supreme Court's decision in Mavilayi Service Co-operative Bank Ltd. and others v. Commissioner of Income Tax and another; 2021 (1) KHC 303 (SC). Revenue's Contention: The judgment does not record any specific contentions made by the revenue in this writ petition. The primary focus of the writ petition is on the procedural aspect of seeking a stay pending appeal.

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 GOPINATH P. WEDNESDAY, THE 20TH DAY OF JULY 2022 / 29TH ASHADHA, 1944 WP(C) NO. 23423 OF 2022 PETITIONER: PERAMANGALAM SERVICE CO-OPERATIVE BANK LTD NO.3103, KALLOOR P.O. KALLORKAD, MUVATTUPUZHA-686 668, REPRESENTED BY SRI. THANKACHAN JOSEPH, SECRETARY IN-CHARGE. BY ADVS. V.P.NARAYANAN ALAN PRIYADARSHI DEV RESPONDENTS: 1 ADDITIONAL /JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL STADIUM, DELHI-110 003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, JAWAHARLAL STADIUM, DELHI-110 003. 3 THE INCOME TAX OFFICER, OFFICE OF THE INCOME TAX OFFICER, NON CORP WARD 1(1), KOCHI CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, KOCHI-682 018. OTHER PRESENT: SRI. JOSE JOSEPH ( SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.07.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P (C) No.23423/2022 -2-

J U D G M E N T The petitioner has preferred Ext.P2 appeal along with Ext.P3 stay petition before the 2nd respondent against Ext.P1 assessment order relating to assessment year 2017-18. The petitioner claims exemption under Section 80P of the Income Tax Act. It is submitted that the issue is covered in favour of the petitioner by Mavilayi Service Co-operative Bank Ltd. and others v. Commissioner of Income Tax and another; 2021 (1) KHC 303 (SC).

2.

Having regard to the above facts and considering the fact that similar matters have been disposed of by this court directing any coercive steps to be kept in abeyance till a decision is taken on the stay petition, this writ petition is disposed of directing the 2nd respondent to consider and pass orders on Ext.P3 stay petition. It is directed that any demand pursuant to Ext.P1 shall be kept in abeyance till a decision is taken on Ext.P3 stay petition. GOPINATH P. JUDGE AMG

W.P (C) No.23423/2022 -3- APPENDIX OF WP(C) 23423/2022 PETITIONER EXHIBITS Exhibit1OF THE ASSESSMENT ORDER DATED 22-03-2022 Exhibit2OF THE MEMORANDUM OF APPEAL DATED 10-04-2022 Exhibit3 STAY PETITION DATED 31-03-2022 Exhibit4 LETTER FROM THIRD RESPONDENT DATED 12-07-2022

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