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

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WP(C)/26391/2020HC KeralaKLHC01065530202030 November 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, noted that in similar matters, it has directed the Appellate Authority to consider and pass orders on appeals and to stay recovery of disputed amounts pending disposal. Therefore, the Writ Petition is disposed of with a direction to the 3rd respondent (Income Tax Appellate Tribunal) 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 by Ext.P1 assessment order shall be kept in abeyance until orders are passed by the 3rd respondent and communicated to the petitioner. The petitioner is directed to produce a copy of the writ petition and the judgment before the 3rd respondent for further action. No specific finding was made on the merits of the Section 80P deduction claim.

What were the facts?

The petitioner, The Angadipuram Service Co-operative Bank Ltd., is aggrieved by an assessment order (Ext.P1) passed under the Income Tax Act. An appeal filed before the first appellate authority 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 pertains to the permissibility of deduction under Section 80P of the Income Tax Act concerning Co-operative Societies. The petitioner contended that in similar cases, the High Court has directed the Appellate Authority to decide appeals within a timeframe and to keep recovery proceedings in abeyance.

What were the issues?

1. Whether the Income Tax Appellate Tribunal should be directed to consider and pass orders on the petitioner's appeal (Ext.P3) within a specified time frame, and to stay recovery proceedings pending the disposal of the appeal? Assessee's Contentions: The petitioner argued that the appeal involves the permissibility of deduction under Section 80P of the Income Tax Act in its application to Co-operative Societies. They relied on the High Court's practice in similar cases where directions were issued to the Appellate Authority to consider appeals expeditiously and to keep recovery of disputed amounts in abeyance. The petitioner sought a similar direction in their case. Revenue's Contentions: The judgment does not record any specific contentions made by the revenue (respondents).

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 MONDAY, THE 30TH DAY OF NOVEMBER 2020 / 9TH AGRAHAYANA, 1942 WP(C).No.26391 OF 2020(Y) PETITIONER/S: THE ANGADIPURAM SERVICE CO-OPERATIVE BANK LTD NO. P 581 ROSHNI PLAZA, ANGADIPPURAM, MALAPPURAM, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) (APPEALS), AYAKAR BHAVAN, KOZHIKODE, PIN-676001. 2 THE INCOME TAX OFFICEER 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 30.11.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.26391 OF 2020(Y) 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 against the petitioner by Ext.P1 assessment order shall be kept in abeyance till

WP(C).No.26391 OF 2020(Y) 3 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.26391 OF 2020(Y) 4

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 18.12.2018 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2016-17. EXHIBIT P2 COPY OF THE THE ORDER DATED 17/09/2020 ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2016-17. 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 2016-17. 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 2016-17.

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