THE MANNARKKAD TALUK GOVERNMENT EMPLOYEES CO-OPERATIVE CREDIT SOCIETY LIMITED P-630 vs. THE INCOME TAX OFFICER

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WP(C)/20524/2020HC KeralaKLHC01051655202001 October 2020Author: HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition by directing the 3rd respondent (Income Tax Appellate Tribunal) to consider and pass orders on the petitioner's appeal (Ext.P3) within six months from the date of receiving a copy of the judgment. The Court also ordered that recovery steps for the amounts confirmed against the petitioner by Exts.P1 and P2 orders shall be kept in abeyance until the Tribunal passes its orders and communicates them to the petitioner. The petitioner is required to furnish a copy of the judgment and the writ petition to the 3rd respondent. The core issue of the permissibility of deduction under Section 80P was not decided on merits by the High Court, but the Tribunal was directed to adjudicate it.

What were the facts?

The petitioner, Mannarkkad Taluk Government Employees Co-operative Credit Society Limited, is challenging an assessment order (Ext.P1) and an order of the First Appellate Authority (Ext.P2) which rejected its appeal. 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 relies on previous High Court decisions where similar directions were issued to appellate authorities to consider appeals and grant stay of recovery proceedings.

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) concerning the deduction under Section 80P of the Income Tax Act. Assessee's Contention: The petitioner argues that the issue involves the permissibility of deduction under Section 80P of the Income Tax Act in its application to Co-operative Societies. They point to prior High Court judgments that directed appellate authorities to consider appeals and stay recovery proceedings in similar cases. Revenue's Contention: The judgment does not record any specific arguments made 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 THURSDAY, THE 01ST DAY OF OCTOBER 2020 / 9TH ASWINA, 1942 WP(C).No.20524 OF 2020(M) PETITIONER/S: THE MANNARKKAD TALUK GOVERNMENT EMPLOYEES CO- OPERATIVE CREDIT SOCIETY LIMITED P 630 MANNARKKAD P.O, PALAKKAD -678 582 REPRESENTED BY ITS SECRETARY, UMA N.V BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON SMT.K.KRISHNA RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 4, AYAKAR BHAVAN, PALAKKAD-678 014 2 THE COMMISSIONER OF INCOME TAX (APPEALS) THRISSUR-680 021. 3 THE INCOME TAX APPELLATE TRIBUNAL, AYAKAR BHAVAN, KAKKANADU, KOCHI-682 030, REPRESENTED BY ITS REGISTRAR. OTHER PRESENT: SC: JOSE JOSEPH FOR RESPONDENTS THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.10.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.20524 OF 2020(M) 2

JUDGMENT Against Ext.P1 assessment order under the Income Tax Act, the petitioner preferred an appeal before the First Appellate Authority but the same was rejected by Ext.P2 order. Aggrieved by the said order, the petitioner preferred Ext.P3 appeal along with Ext.P4 stay petition before the 3rd respondent. It is the contention of the learned counsel for 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. It is pointed out that in similar matters this Court has directed the appellate authority to consider and pass orders in the appeal and stayed the recovery proceedings, in the meanwhile.

2.

I have heard the learned counsel appearing for the petitioner as also the learned Standing Counsel appearing for the respondents. On a consideration of the facts and circumstances of the case and the submissions made across the Bar and the finding that in similar cases this Court has granted stay of recovery proceedings, pending disposal of the appeal by the appellate authority, I dispose the writ petition by directing the 3rd respondent to consider and pass orders on Ext.P3 appeal preferred by the petitioner within an outer time limit of six months from the date of receipt of a copy of this judgment, after hearing the petitioner. I also make it clear that till such time as orders are passed by the 3rd respondent in the appeal as directed above and the orders communicated to the petitioner, recovery steps for recovery of amounts confirmed against the petitioner by WP(C).No.20524 OF 2020(M) 3 Exts.P1 and P2 orders shall be kept in abeyance. The petitioner shall produce a copy of this judgment together with a copy of the writ petition before the 3rd respondent for further action. A.K.JAYASANKARAN NAMBIAR JUDGE DG

WP(C).No.20524 OF 2020(M) 4

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2016-17. EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2016-17. EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT BEFORE THE 3RD RESPONDENT 2016-17. EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT.

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