THE AKATHETHARA SERVICE CO-OPERATIVE BANK LTD F-1514, , vs. THE INCOME TAX OFFICER

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WP(C)/20519/2020HC KeralaKLHC01051590202001 October 2020Author: HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala, while disposing of the writ petition, directed the 3rd respondent (Income Tax Appellate Tribunal) to consider and pass orders on the appeal (Ext.P3) filed by the petitioner within six months from the date of receiving the judgment. The Court also ordered that recovery steps for the amounts confirmed 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 itself, but rather directs the Tribunal to proceed with its adjudication.

What were the facts?

The petitioner, The Akathetara Service Co-Operative Bank Ltd, is challenging a rectification order (Ext.P1) passed under the Income Tax Act. The petitioner's appeal against this order was rejected by the First Appellate Authority (Ext.P2). Subsequently, the petitioner filed an appeal (Ext.P3) along with a stay petition (Ext.P4) before the Income Tax Appellate Tribunal (3rd respondent). The core issue revolves around the permissibility of deduction under Section 80P of the Income Tax Act concerning Co-Operative Societies. The petitioner points to previous High Court judgments where similar appeals were directed to be considered by the appellate authority, with recovery proceedings stayed in the interim.

What were the issues?

1. Whether the Income Tax Appellate Tribunal should be directed to consider and pass orders on the appeal filed by the petitioner concerning the permissibility of deduction under Section 80P of the Income Tax Act in its application to Co-Operative Societies. Assessee's Contention: The petitioner argues that the issue involves the permissibility of deduction under Section 80P of the Income Tax Act. They rely on previous High Court judgments that directed appellate authorities to consider appeals and granted stay of recovery proceedings pending disposal. Revenue's Contention: The judgment records no specific contentions from 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.20519 OF 2020(L) PETITIONER: THE AKATHETHARA SERVICE CO-OPERATIVE BANK LTD F-1514, , AKATHETHARA POT, PALAKKAD-678 008, REPRESENTED BY ITS SECRETARY, SUBHA VARMA P. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENTS: 1 THE INCOME TAX OFFICER WARD 2, 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.20519 OF 2020(L) 2

JUDGMENT

Against Ext.P1 rectification 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 WP(C).No.20519 OF 2020(L) 3 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 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.20519 OF 2020(L) 4

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF RECTIFICATION ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2015-16 DATED 28.8.2019 EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2015-16 DATED 15.9.2020 EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT 2015-16 DATED 26.9.2020 EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DATED 26.9.2020 RESPONDENTS EXHIBITS:NIL //TRUE COPY// P.A TO JUDGE

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