KUNNAMKULAM CO-OPERATIVE URBAN BANK LTD NO. 698, vs. THE COMMISSIONER OF INCOME TAX ( APPEALS)

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WP(C)/19375/2022HC KeralaKLHC01039768202215 June 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala disposed of the writ petition by directing the 1st respondent (Commissioner of Income Tax (Appeals)) to consider and pass orders on the pending appeals (Exts.P2, P5, and P8) after providing the petitioner with an opportunity of hearing. The Court further directed that any demand arising from the assessment orders (Exts.P1, P4, and P7) shall be kept in abeyance until the Commissioner of Income Tax (Appeals) passes orders on the aforementioned appeals. The Court's decision is based on the principle of keeping coercive steps in abeyance until a decision is taken on statutory appeals, especially when the issue is likely covered by a Supreme Court precedent. The specific finding on the entitlement to Section 80P exemption is left to the appellate authority.

What were the facts?

The petitioner, Kunnamkulam Co-operative Urban Bank Ltd., filed appeals against assessment orders for assessment years 2014-15, 2015-16, and 2016-17. These appeals are pending before the Commissioner of Income Tax (Appeals). The petitioner claims exemption under Section 80P of the Income Tax Act. The petitioner relies on the Supreme Court decision in Mavilayi Service Co-operative Bank Ltd. and others v. Commissioner of Income Tax and another. The High Court of Kerala considered the pendency of these statutory appeals and the petitioner's claim, noting that similar matters have been disposed of by directing coercive steps to be kept in abeyance pending a decision on the statutory appeals.

What were the issues?

1. Whether the petitioner is entitled to exemption under Section 80P of the Income Tax Act for the assessment years 2014-15, 2015-16, and 2016-17? (Question of law) Assessee's Contention: The petitioner argues that the issue of exemption under Section 80P is covered in its favour by the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. and others v. Commissioner of Income Tax and another; 2021 (1) KHC 303 (SC). Revenue's Contention: The judgment does not record any specific contentions made by the revenue in this writ petition. However, the existence of assessment orders and pending appeals implies a dispute regarding the assessee's claim for exemption.

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 GOPINATH P. WEDNESDAY, THE 15TH DAY OF JUNE 2022 / 25TH JYAISHTA, 1944 WP(C) NO. 19375 OF 2022 PETITIONER: KUNNAMKULAM CO-OPERATIVE URBAN BANK LTD NO. 698, KUNNAMKULAM, THRISSUR- 680 503, REPRESENTED BY ITS SECRETARY. BY ADV P.C.SASIDHARAN RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, ROOM NO. 356, C.R. BUILDING, IP ESTATE, DELHI 110 002. 2 THE COMMISSIONER OF INCOME TAX , (APPEALS), O/O. THE COMMISSIONER OF INCOME TAX , AYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, THRISSUR, KERALA 680 001. 3 THE INCOME TAX OFFICER, WARD 1 & TPS, CITY PLAZA, INCOME TAX OFFICE, WEST NADA, GURUVAYOOR, KERALA 680 101. OTHER PRESENT: SRI. JOSE JOSEPH (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.06.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P (C) No.19375/2022 -2-

J U D G M E N T The petitioner has preferred appeals against assessment orders namely Exts.P1, P4 and P7 relating to assessment years 2014-15, 2015-16 and 2016-17 respectively. The appeals filed against Exts.P1, P4 and P7 are Exts.P2, P5 and P8. The petitioner claims exemption under Section 80P of the Income Tax Act. It is submitted that the issue is covered in favour of the petitioner by Mavilayi Service Co-operative Bank Ltd. and others v. Commissioner of Income Tax and another; 2021 (1) KHC 303 (SC).

2.

Having regard to the above facts and considering the fact that similar matters have been disposed of by this court directing any coercive steps to be kept in abeyance till a decision is taken on statutory appeals, this writ petition is disposed of directing the 1st respondent to consider and pass orders on Exts.P2, P5 and P8 appeals after affording an opportunity of hearing to the petitioner. It is directed that any demand pursuant to Exts.P1, P4 and P7 shall be kept in abeyance till orders as passed on Exts.P2, P5 and P8. GOPINATH P. JUDGE AMG

W.P (C) No.19375/2022 -3-

Appendix — schedule of exhibits
APPENDIX OF WP(C) 19375/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 2014-15 DATED 30.03.2022 ISSUED BY THE 1ST RESPONDENT. Exhibit P2 TRUE COPY OF THE APPEAL DATED 29.04.2022 AGAINST THE ASSESSMENT ORDER. Exhibit P3 TRUE COPY OF THE STAY PETITION DATED 29.04.2022 FILED BEFORE THE 2ND RESPONDENT. Exhibit P4 TRUE COPY OF THE ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 2015-16 DATED 30.03.2022 ISSUED BY THE 1ST RESPONDENT. Exhibit P5 TRUE COPY OF THE APPEAL DATED 4.05.2022 AGAINST THE ASSESSMENT ORDER. Exhibit P6 TRUE COPY OF THE STAY PETITION DATED 29.04.2022 FILED BEFORE THE 2NDS RESPONDENT. Exhibit P7 TRUE COPY OF THE ASSESSMENT ORDER FOR THE ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 2016-17 DATED 30.03.2022 ISSUED BY THE 1ST RESPONDENT. Exhibit P8 TRUE COPY OF THE APPEAL DATED 5.05.2022 AGAINST THE ASSESSMENT ORDER. Exhibit P9 TRUE COPY OF THE STAY PETITION DATED 5.05.2022 FILED BEFORE THE 2ND RESPONDENT. Exhibit P10 TRUE COPY OF THE REQUEST FOR CONDONATION OF DELAY IN FILING APPEAL BEFORE THE 1ST RESPONDENT. Exhibit P11 TRUE COPY OF THE DEMAND NOTICE DATED 3.6.2022 ISSUED BY THE 3RD RESPONDENT Exhibit P12 TRUE COPY OF THE JUDGMENT IN W.P.C NO. 27560/2019 DATED 16.10.2019. Exhibit P13 TRUE COPY OF THE JUDGMENT IN W.PC NO. 25647/2021 DATED 18.11.2021. Exhibit P14 TRUE COPY OF THE JUDGMENT IN W.P(C) NO. 26935/2021 DATED 30.11.2021.

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