KURUPPAMPADY SERVICE CO-OPERATIVE BANK LTD.NO.E 257, vs. THE CENTRAL BOARD OF DIRECT TAXES
What did the High Court hold?
The High Court directed the 3rd respondent, the Commissioner of Income Tax (Appeals), to consider and pass orders on the statutory appeals filed by the petitioner (Ext.P2 and P2(a)) expeditiously. Furthermore, the Court ordered that until the appeals are disposed of, the respondents are directed to keep the recovery proceedings initiated pursuant to the assessment orders (Ext.P1) in abeyance. The Court did not decide on the merits of the deduction claim itself but focused on procedural relief pending the appeal. The core issue of eligibility for Section 80(p) deduction, while discussed in the context of the petitioner's reliance on precedents, was not adjudicated upon by the High Court in this writ petition.
What were the facts?
The petitioner, Kuruppampady Service Co-operative Bank Ltd., a primary Agricultural Credit Society, is challenging assessment orders (Ext.P1 and P1(a)) issued by the Income Tax Officer (2nd respondent) denying its claim for deduction under Section 80(p) of the Income Tax Act. The petitioner has filed statutory appeals (Ext.P2 and P2(a)) before the Commissioner of Income Tax (Appeals) (3rd respondent). While these appeals are pending, the 2nd respondent is initiating coercive steps for recovery of the demanded amount. The petitioner relies on the Supreme Court's decision in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax and a common judgment of the Kerala High Court in W.P.(C) No.8610 of 2021 and connected cases.
What were the issues?
1. Whether the petitioner is eligible for deduction under Section 80(p) of the Income Tax Act, 1961, in light of the Supreme Court's decision in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax. Assessee's contention: The petitioner argues that its eligibility for deduction under Section 80(p) is squarely covered by the Supreme Court's decision in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax. They also refer to a common judgment of the Kerala High Court in W.P.(C) No.8610 of 2021 and connected cases, which directed the Commissioner of Income Tax to dispose of appeals and stay recovery proceedings. Revenue's contention: The judgment records no specific contention from the revenue regarding the eligibility for deduction under Section 80(p). However, the revenue, through the 2nd respondent, is pursuing recovery of the assessed demand.
Which sections of the Income-tax Act were involved?
Section 80(p)
AI-generated summary — verify with the full judgment below
Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN TUE AY, THE 13TH DAY OF APRIL 2021 / 23RD CHAITHRA, 1943 WP(C).No.9753 OF 2021(T) PETITIONER/S: KURUPPAMPADY SERVICE CO-OPERATIVE BANK LTD.NO.E 257, KURUPPAMPADY, PERUMBAVOOR, ERNAKULAM - 683545, REPRESENTED BY ITS SECRETARY, JAYAPRAKASH N. BY ADVS. DR.K.P.PRADEEP SHRI.HAREESH M.R. SRI.T.T.BIJU SMT.T.THASMI SMT.M.J.ANOOPA RESPONDENT/S: 1 THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI - 110001, REPRESENTED BY ITS CHAIRMAN. 2 INCOME TAX OFFICER, WARD .3, AYYAKKAR BHAVAN, INCOME TAX, KAP COMMERCIAL COMPLEX, O/O. ADDITIONAL COMMISSIONER OF INCOME TAX, ALUVA RANGE, R.S. ROAD, ALUVA, ERNAKULAM - 683101. 3 COMMISSIONER OF INCOME TAX (APPEALS) OFFICE OF THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, INCOME TAX OFFICE, PANAMPILLY NAGAR, KOCHI, ERNAKULAM - 682036. 4 ADDITIONAL COMMISSIONER OF INCOME TAX NATIONAL E-ASSESSMENT CENTRE, DELHI, ROOM NO. 401, 2ND FLOOR, E-RAMP. JAWAHARLAL NEHRU STADIUM, DELHI - 110003. OTHER PRESENT: SRI CHRISTOPHER ABRAHAM SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13.04.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C).No.9753 OF 2021(T) ..2.. JUDGMENT Dated this the 13th day of April 2021 The petitioner is a Co-operative Society and a primary Agricultural Credit Society, registered under the provisions of the Kerala Co-operative Societies Act, 1969. The petitioner is aggrieved by Ext.P1 and P1(a) assessment orders wherein, the claim of the petitioner for deduction under Section 80(p) of the Income Tax Act is denied. Challenging Ext.P1 and P1(a) assessment orders, the petitioner has preferred Ext.P2 and P2 (a) statutory appeals before the 3rd respondent. However, in the meantime, the 2nd respondent is taking coercive steps to recover the amount demanded in Ext.P1 and P1(a) assessment orders. According to the petitioner, the eligibility of the petitioner for deduction under Section 80(p) of the Income Tax Act is covered by the decision of the Hon'ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax reported in [2021(1) KHC 303]. The counsel for the petitioner also relied on the common judgment of this Court in WP(C).No.9753 OF 2021(T) ..3.. W.P.(C) No.8610 of 2021 and connected cases wherein, this Court, taking note of the decision in Mavilayi Service Co- operaitve Bank's case (supra) directed the Commissioner of Income Tax to consider and dispose of the statutory appeals filed by the Co-operative Societies therein, and till then not to proceed with recovery steps .
Heard the counsel for the petitioner and the counsel for the respondents.
In the light of the judgments referred to above, there will be a direction to the 3rd respondent to consider and pass orders on Ext.P2 and P2 (a) appeals, expeditiously and till then the respondents are directed to keep the recovery proceedings pursuant to Ext.P1 assessment order in abeyance. The writ petition is disposed of with the above directions. MURALI PURUSHOTHAMAN, JUDGE SB
WP(C).No.9753 OF 2021(T) ..4..
Appendix — schedule of exhibits
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