THE ANCHALUMMOOD SERVICE CO-OPERATIVE BANK LTD. NO.613, vs. THE INCOME TAX OFFICER,

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WP(C)/6377/2021HC KeralaKLHC01016819202112 March 2021Author: HONOURABLE MR. JUSTICE A.M.BADAR4 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court of Kerala did not decide on the merits of the petitioner's claim for deduction under Section 80P. Instead, the Court directed the 3rd respondent (Commissioner of Income Tax (Appeals)) to consider and decide the pending stay petition (Ext.P4) within two months from the date of the judgment. The petitioner was directed to cooperate with the expeditious disposal of the stay petition. Crucially, until the stay petition is disposed of, the respondents were directed to keep coercive action for the recovery of the amount determined under the assessment order (Ext.P2) in abeyance. The writ petition was disposed of with these directions. The issue of the actual entitlement to Section 80P deduction was expressly left undecided by the High Court.

What were the facts?

The petitioner, The Anchalummood Service Co-operative Bank Ltd., is an assessee under the Income Tax Act, claiming deductions under Section 80P. Aggrieved by an assessment order (Ext.P2) that rejected this claim, the petitioner filed an appeal (Ext.P3) with the 3rd respondent, the Commissioner of Income Tax (Appeals). This appeal was accompanied by a stay petition (Ext.P4). The petitioner's grievance is that despite the pending stay petition, the respondents are proceeding with the recovery of the amount demanded in the assessment order. The respondents, represented by their Standing Counsel, contend that the petitioner is liable to pay the assessed amount.

What were the issues?

1. Whether the petitioner is entitled to deductions under Section 80P of the Income Tax Act, 1961, which was rejected by the assessment order. 2. Whether coercive steps for recovery of the assessed demand should be stayed pending the disposal of the appeal and stay petition. Assessee's Contention: The petitioner argues that it is entitled to deductions under Section 80P and that recovery actions are being pursued despite a pending appeal and stay petition. The petitioner relies on its entitlement to the deduction under Section 80P. Revenue's Contention: The revenue contends that the petitioner is liable to pay the amount determined under the assessment order. No specific authorities, circulars, or precedents were mentioned in the judgment for the revenue's argument.

Which sections of the Income-tax Act were involved?

Section 80P

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.M.BADAR FRIDAY, THE 12TH DAY OF MARCH 2021 / 21ST PHALGUNA, 1942 WP(C).No.6377 OF 2021(V) PETITIONER/S: THE ANCHALUMMOOD SERVICE CO-OPERATIVE BANK LTD. NO.613, REPRESENTED BY ITS SECRETARY, PERINAD P.O., KOLLAM DISTRICT, PIN-691601. BY ADV. SRI.T.R.HARIKUMAR RESPONDENT/S: 1 THE INCOME TAX OFFICER,WARD 1 & TPS, OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX, KOLLAM RANGE, AAYAKAR BHAVAN, KARBALA JUNCTION, KOLLAM, PIN-691001. 2 THE ASSISTANT DIRECTOR OF INCOME TAX, CENTRALIZED PROCESSING CENTRE, BENGALURU-560500. 3 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, PIN-695003. 4 THE COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, NORTH BLOCK, DELHI-110001. 5 THE KERALA STATE CO-OPERATIVE BANK (FORMERLY KNOWN AS KOLLAM DISTRICT CO-OPERATIVE BANK), ANCHALUMMOOD BRANCH, KOLLAM DISTRICT, PIN-691601, REPRESENTED BY ITS BRANCH MANAGER. SRI. CHRISTOPHER ABRAHAM - SC,INCOME TAX SRI. P.C SASIDHARAN - SC,BANK THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.03.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.6377 OF 2021 2 JUDGMENT Dated this the 12th day of March 2021

Heard both sides.

2.

Petitioner is an assessee under the Income Tax Act and according to the learned counsel for the petitioner, it is entitled for deductions enumerated under Section 80 P of the Income Tax Act. The petitioner, feeling aggrieved by the assessment order at Ext.P2, rejecting the claim for deduction under Section 80P of the Income Tax Act, has filed an appeal at Ext.P3 before the 3rd respondent and that appeal is accompanied by a stay petition (Ext.P4). Grievance of the petitioner is to the effect that the despite pendency of the stay petition, the respondents are taking steps for effecting recovery of the amount determined under the assessment order at Ext.P2. 3. Learned Standing Counsel appearing for respondent Nos.1 to 4 opposed the petition by contending that the petitioner is liable to pay the amount determined under the assessment order.

4.

I have considered the submissions so advanced and I am satisfied that the petition can be disposed of with the following directions and it is accordingly ordered:-

The 3rd respondent is directed to consider and decide the WP(C).No.6377 OF 2021 3 pending stay petition at Ext.P4 in the appeal challenging the assessment order at Ext.P2, within a period of two months from the date of communication of this judgment. The petitioner to cooperate with the 3rd respondent in expeditious disposal of the stay petition at Ext.P4. Till disposal of Ext.P4 stay petition, the respondents are directed to keep the coercive action taken for effecting recovery of the amount determined under the assessment order Ext.P2 in abeyance.

The writ petition is accordingly disposed of. A.M.BADAR ajt JUDGE

WP(C).No.6377 OF 2021 4

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ACKNOWLEDGMENT WITH RESPECT TO THE FILING OF RETURNS FOR THE ASSESSMENT YEAR 2019-2020. EXHIBIT P2 A TRUE COPY OF THE INTIMATION UNDER SECTION 143(1) DATED 23.02.2021 FOR THE ASSESSMENT YEAR 2019-2020. EXHIBIT P3 A TRUE COPY OF THE ONLINE APPEAL DATED 01.03.2021 FILED BEFORE THE 3RD RESPONDENT. EXHIBIT P4 A TRUE COPY OF THE STAY PETITION DATED 28.02.2021 PREFERRED IN EXT.P3 APPEAL. EXHIBIT P5 A TRUE COPY OF THE RESPONSE ACKNOWLEDGMENT NO.03032114340036 ISSUED FROM THE WEBSITE OF THE INCOME TAX DEPARTMENT. EXHIBIT P6 A TRUE COPY OF THE RESPONSE ACKNOWLEDGMENT NO.06032114377169 ISSUED FROM THE WEBSITE OF THE INCOME TAX DEPARTMENT. EXHIBIT P7 A TRUE COPY OF THE JUDGMENT DATED 19.07.2019 IN W.A.NO.1639 OF 2019. EXHIBIT P8 A TRUE COPY OF THE JUDGMENT DATED 28.02.2020 IN WP(C)NO.6071 OF 2020. EXHIBIT P9 A TRUE COPY OF THE JUDGMENT DATED 22.02.2021 IN WP(C)NO.4467 OF 2021.

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