THANIYAM PANCHAYATH SERVICE CO-OPERATIVE BANK LTD NO. R 387 vs. THE CENTRAL BOARD OF DIRECT TAXES

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WP(C)/8748/2020HC KeralaKLHC01022550202022 July 2020Author: HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, taking note of the petitioner's submission and finding that similar matters had been disposed of by directing the appellate authority to pass orders on the appeal and keep recovery proceedings in abeyance, disposed of the writ petition. The 3rd respondent (Commissioner of Income Tax (Appeals)) was directed to consider and pass orders on Ext.P2 appeal within six months from the date of receipt of a copy of the judgment, after hearing the petitioner. Recovery steps for amounts confirmed by the assessment orders, particularly pursuant to Ext.P3 demand notice, were to be kept in abeyance until orders were passed by the appellate authority and communicated to the petitioner. The High Court did not decide the merits of the appeal itself, but rather directed the procedural steps for its disposal.

What were the facts?

The petitioner, Thaniyam Panchayath Service Co-operative Bank Ltd, filed a writ petition before the High Court of Kerala challenging an assessment order (Ext.P1) under the Income Tax Act. The petitioner had preferred an appeal (Ext.P2) and a stay petition (Ext.P5) before the Commissioner of Income Tax (Appeals), the 3rd respondent. A demand notice (Ext.P3) was also issued. The core issue in the appeal concerned the permissibility of deduction under Section 80P of the Act, specifically its applicability to Co-operative Societies. The petitioner pointed out that the High Court had previously disposed of similar writ petitions by directing the appellate authority to consider appeals and keep recovery proceedings in abeyance.

What were the issues?

1. Whether the 3rd respondent (Commissioner of Income Tax (Appeals)) should be directed to consider and pass orders on the petitioner's appeal (Ext.P2) against the assessment order (Ext.P1) within a specified period. 2. Whether recovery steps pursuant to the assessment order and demand notice (Ext.P3) should be kept in abeyance until the appellate authority passes orders on the appeal. Assessee's Contention: The petitioner argued that the issue involved in their appeal relates to the deduction under Section 80P of the Income Tax Act concerning co-operative societies. They relied on previous High Court judgments in similar matters where directions were issued to the appellate authority to decide the appeals and keep recovery proceedings in abeyance. The revenue did not record any specific arguments in the judgment.

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 WEDNESDAY, THE 22ND DAY OF JULY 2020 / 31ST ASHADHA, 1942 WP(C).No.8748 OF 2020(P) PETITIONER/S: THANIYAM PANCHAYATH SERVICE CO-OPERATIVE BANK LTD NO. R 387,P.O.KIZHUPPILLIKARA, THRISSUR-680 702, REPRESENTED BY ITS SECRETARY UNNIKRISHNAN.K.V., BY ADVS. DR.K.P.PRADEEP SMT.T.THASMI SMT.NOORUNISSA K.A. RESPONDENT/S: 1 THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110 001, REPRESENTED BY ITS CHAIRMAN 2 INCOME TAX OFFICER, WARD 2 (5), THRISSUR, INCOME TAX DEPARTMENT, AAYAKAR BHAVAN, INCOME TAX OFFICE, SHAKTHANTHAMPURAN NAGAR, THRISSUR-680 001 3 COMMISSIONER OF INCOME TAX (APPEALS) THRISSUR, AAYAKAR BHAVAN, S.T.NAGAR, MUNICIPAL OFFICER ROAD, THRISSUUR-680 001 OTHER PRESENT: S.C. SRI.JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.07.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.8748 OF 2020(P) 2

JUDGMENT Against Ext.P1 assessment order under the Income Tax Act,('The Act' for short) the petitioner has preferred Ext.P2 appeal and Ext.P5 stay petition before the 3rd respondent. Ext.P3 is the demand notice issued. It is the case of the petitioner that the issue involved in the appeal pertains to the permissibility of deduction under Section 80P of the Act in its applicability to Co-operative Societies. It is pointed that in similar matters this Court has already disposed the writ petition by directing the appellate authority to consider and pass orders in the appeal and keep in abeyance the recovery proceedings pursuant to the assessment orders, in the meanwhile.

Taking note of the said submission, and finding that this Court has in similar matters directed the appellate authority to pass orders in the appeal, and to keep in abeyance the recovery proceedings in the meanwhile, the writ petition is disposed by directing the 3rd respondent to consider and pass orders on Ext.P2 appeal, within a period of six months from the date of receipt of a copy of this judgment, after hearing the petitioner. Recovery steps for recovery of amounts confirmed against the petitioner by the assessment orders in question, and in particular pursuant to Ext.P3 demand notice, shall be kept in abeyance till such time as orders are passed by the appellate authority as directed above and the orders communicated to the petitioner. A.K.JAYASANKARAN NAMBIAR JUDGE WP(C).No.8748 OF 2020(P) 3

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER NO.ITBA/AST/S/143(3)/2019-20/1019431761(1) DATED 25.10.2019 ISSUED FOR THE YEAR 2017- 18 BY THE 2ND RESPONDENT EXHIBIT P2 TRUE COPY OF THE APPEAL DATED 21.11.2019 FILED BEFORE THE 3RD RESPONDENT FOR THE ASSESSMENT YEAR 2018-18 EXHIBIT P3 TRUE COPY OF THE DEMAND NOTICE NO.ITBA/AST/S/156/2019-20/1019431824(1) DATED 25.10.2019 ISSUED FOR THE YEAR 2017- 18 BY THE 2ND RESPONDENT EXHIBIT P4 TRUE COPY OF THE NOTICE NO.ITBA/COM/F/17/2019-20/1023633593(1) DATED 06.01.2020 ISSUED FOR THE YEAR 2017- 18 BY THE 2ND RESPONDENT EXHIBIT P5 TRUE COPY OF THE STAY APPLICATION FILED ON 17.01.2020 BEFORE THE 3RD RESPONDENT IN EXT. P2 APPEAL

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