THE MUNDUR SERVICE CO-OPERATIVE BANK LTD. vs. THE INCOME TAX OFFICER

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WP(C)/20053/2020HC KeralaKLHC01050424202028 September 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 an outer time limit of six months from the date of receipt of the judgment. The Tribunal is to hear the petitioner before passing its order. Furthermore, the Court ordered that recovery steps for the amounts confirmed against the petitioner by Exts.P1 and P2 shall be kept in abeyance until the Tribunal passes its order and communicates it to the petitioner. The petitioner is directed to furnish a copy of the judgment and the writ petition to the Tribunal for further action. The specific merits of the Section 80P deduction were not decided by the High Court.

What were the facts?

The petitioner, The Mundur Service Co-Operative Bank Ltd., is challenging an assessment order (Ext.P1) and an order from the Commissioner of Income Tax (Appeals) (Ext.P2). Aggrieved by Ext.P2, 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 pertains to the permissibility of deduction under Section 80P of the Income Tax Act for Co-Operative Societies. The petitioner points to previous High Court decisions 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 petitioner's appeal against the assessment order and the order of the Commissioner of Income Tax (Appeals), and if so, within what timeframe? Assessee's Contentions: The petitioner argues that the appeal before the Tribunal concerns the deductibility under Section 80P of the Income Tax Act in the context of Co-Operative Societies. They rely on prior High Court judgments that have directed appellate authorities to decide such appeals and have granted interim stays on recovery proceedings. Revenue's Contentions: 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 MONDAY, THE 28TH DAY OF SEPTEMBER 2020 / 6TH ASWINA, 1942 WP(C).No.20053 OF 2020(F) PETITIONER/S: THE MUNDUR SERVICE CO-OPERATIVE BANK LTD. NO.F 1650, MUNDUR, PALAKKAD-678 592, REP.BY ITS SECRETARY, JIJUMON A.J. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 2, AYAKAR BHAVAN, PALAKKAD-670 014 2 THE COMMISSIONER OF INCOME TAX (APPEALS) THRISSUR -680 021 3 THE INCOME TAX APPELLATE TRIBUNAL AYAKAR BHAVAN, KAKKANADU, KOCHI-682 030, REP.BY ITS REGISTRAR OTHER PRESENT: SC: JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28.09.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.20053 OF 2020(F) 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

WP(C).No.20053 OF 2020(F) 3 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 SJ

WP(C).No.20053 OF 2020(F) 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 - 2016-17. EXHIBIT P4 COPY OF STAY PETITION FILED THE PETITIONER BEFORE THE 3RD RESPONDENT.

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