THE PATTAMBI SERVICE CO-OPERATIVE BANK LTD. NO. P 585 vs. THE ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER

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WP(C)/5849/2021HC KeralaKLHC01015609202108 March 2021Author: HONOURABLE MR. JUSTICE A.M.BADAR4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition with directions. It directed the 2nd respondent (National Faceless Appeal Centre) to decide the stay petition filed with the statutory appeal within four months from the date of communication of the judgment. The petitioner was directed to cooperate in the expeditious disposal of the stay petition. Crucially, the Court ordered that all coercive actions for realizing the amount determined by the assessment order at Ext.P1 should be kept in abeyance until the disposal of the stay petition. The petitioner was to furnish a copy of the judgment to the 2nd respondent for necessary action. The issue of the allowability of the Section 80P deduction was not decided on merits.

What were the facts?

The petitioner, The Pattambi Service Co-operative Bank Ltd., a co-operative society providing credit facilities, claimed a deduction under Section 80P(2)(a)(i) of the Income Tax Act, 1961. This claim was disallowed by an assessment order (Ext.P1). The petitioner filed a statutory appeal along with a stay petition before the 2nd respondent (National Faceless Appeal Centre). While the stay petition was pending, steps were being taken to recover the assessed amount. The petitioner filed a writ petition before the High Court of Kerala seeking relief.

What were the issues?

1. Whether the High Court should intervene in the pending statutory appeal and stay petition before the appellate authority, given the pendency of recovery proceedings. Assessee's Contention: The petitioner argued that despite filing a statutory appeal and stay petition, coercive steps were being taken to recover the assessed amount, necessitating High Court intervention. Revenue's Contention: The revenue opposed the writ petition, contending that recovery of the determined amount was permissible in the absence of a stay order on the assessment order (Ext.P1).

Which sections of the Income-tax Act were involved?

Section 80P(2)(a)(i)

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 MONDAY, THE 08TH DAY OF MARCH 2021 / 17TH PHALGUNA, 1942 WP(C).No.5849 OF 2021(E) PETITIONER: THE PATTAMBI SERVICE CO-OPERATIVE BANK LTD. NO. P 585 RAZMALL COMPLEX, PALLIPURAM ROAD, PATTAMBI, PALAKKAD-679 303, REPRESENTED BY ITS SECRETARY, PARAMESWARAN M BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENTS: 1 THE ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER NATIONAL E-ASSESSMENT CENTRE, DELHI-110 001. 2 NATIONAL FACELSS APPEAL CENTRE, DELHI-110 001, REPRESENTED BY THE PRINCIPAL CHIEF COMMISSIONER. OTHER PRESENT: SRI.JOSE JOSEPH, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.03.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

JUDGMENT Dated this the 8th day of March 2021 Heard both sides.

2.

Learned counsel for the petitioner submits that the petitioner is a co-operative society carrying on business of providing credit facility to its members. The petitioner has claimed the benefit under Section 80P(2)(a)(i) of the Income Tax Act, 1961. But the same came to be disallowed by the order at Ext.P1. Hence the petitioner has filed appeal along with stay petition before the 2nd respondent. However, during the pendency of the stay petition, steps are being taken to realise the amount so determined.

3.

Learned Standing Counsel, who takes notice for the Income Tax Department, opposed the writ petition by submitting that the amount determined needs to be recovered without there being any stay to the assessment order at Ext.P1. 4. Having considered the submissions so advanced, in the facts and circumstances of the case, as statutory appeal along with stay petition is pending, this writ petition is disposed of with the following directions:

The 2nd respondent is directed to decide the stay petition filed with the statutory appeal within a period of four months from the date of communication of this judgment. The petitioner to co-operate the 2nd respondent in expeditious disposal of the stay petition. Till disposal of the stay petition, all coercive action taken for realising the amount determined by the assessment order at Ext.P1 should be kept in abeyance. The petitioner to furnish copy of the judgment to the 2nd respondent for necessary action. A.M.BADAR JUDGE smp

Appendix — schedule of exhibits
APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2018-19 DATED 9.2.2021 EXHIBIT P2 COPY OF THE SO NO 3296(E) ISSUED BY THE MINISTRY OF FINANCE, NEW DELHI DATED 25.9.2020 EXHIBIT P2 (a) COPY OF THE SO NO 3297 (E) ISSUED BY THE MINISTRY OF FINANCE, NEW DELHI DATED 25.9.2020 EXHIBIT P3 COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 16.2.2021 EXHIBIT P3 (a) COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE ADDITIONAL/JOINT/ASSISTANT COMMISSIONER OF INCOME TAX, COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS ASSESSMENT CENTRE, DELHI DATED 16.2.2021 EXHIBIT P4 COPY OF THE ORDER OF THIS HON'BLE COURT IN WPC NO 3078/2021 DATED 8.2.2021 RESPONDENTS' EXHIBITS: NIL. True Copy P.S to Judge smp

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