THE MANNARKKAD TALUK AIDED SCHOOL EMPLOYEES CO-OPERATIVE CREDIT SOCIETY LTD. NO. P 945 vs. THE INCOME TAX OFFICER

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WP(C)/20564/2020HC KeralaKLHC01051599202001 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 Income Tax Appellate Tribunal (3rd respondent) 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, after hearing the petitioner. 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 order and communicates it to the petitioner. The petitioner is required to furnish a copy of the judgment and the writ petition to the Tribunal. The judgment does not decide the merits of the appeal concerning Section 80P deduction, but rather directs the expeditious disposal of the appeal by the Tribunal.

What were the facts?

The petitioner, Mannarkkad Taluk Aided School Employees Co-Operative Credit Society Ltd., 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 pertains to the permissibility of deduction under Section 80P of the Income Tax Act for co-operative societies. The petitioner relies on previous High Court orders in similar cases where appellate authorities were directed to decide appeals and recovery proceedings were stayed.

What were the issues?

1. Whether the Income Tax Appellate Tribunal should be directed to consider and pass orders on the petitioner's appeal against the assessment order and the order of the Commissioner of Income Tax (Appeals)? (Question of procedure/mixed law and fact, concerning the appellate process under 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, a matter that has been subject to judicial consideration. They point to High Court precedents where similar directions were issued to appellate authorities to decide appeals and stay recovery proceedings pending disposal. Revenue's Contention: The judgment records no specific contention from the revenue regarding the direction to the Tribunal or the stay of recovery.

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.20564 OF 2020 PETITIONER: THE MANNARKKAD TALUK AIDED SCHOOL EMPLOYEES CO- OPERATIVE CREDIT SOCIETY LTD. NO. P 945 MANNARKKAD, PALAKKAD - 678 582, REPRESENTED BY ITS SECRETARY, VINEETHA M. S. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENTS: 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. BY ADV.SRI.JOSE JOSEPH, SC 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.20564 OF 2020 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

WP(C).No.20564 OF 2020 3 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 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 mns

WP(C).No.20564 OF 2020 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 DATED 28.12.2018. EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2016-17 DATED 15.09.2020. EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT 2016-17 DATED 26.09.2020. EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DATED 26.09.2020. RESPONDENTS EXHIBITS:NIL //TRUE COPY// P.A TO JUDGE

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