PERINGOTTUKARA SERVICE CO-OPERATIVE BANK LTD NO.110 vs. THE CENTRAL BOARD OF DIRECT TAXES

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WP(C)/8752/2020HC KeralaKLHC01022554202021 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 the precedent set in similar cases, disposed of the writ petition. The Court directed the 3rd respondent (Commissioner of Income Tax (Appeals)) to consider and pass orders on the petitioner's appeals (Ext.P2 series) within a period of six months from the date of receipt of a copy of the judgment, after providing the petitioner an opportunity to be heard. Crucially, recovery steps for the amounts confirmed by the assessment orders, and specifically pursuant to the demand notices (Exts.P3 and P4 series), were ordered to be kept in abeyance until the appellate authority passed its orders and communicated them to the petitioner. The judgment did not decide the merits of the Section 80P deduction claim itself, but rather focused on the procedural aspect of expediting the appeal and staying recovery.

What were the facts?

The petitioner, Peringottukara Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala challenging assessment orders (Ext.P1 series) issued under the Income Tax Act. The petitioner had preferred appeals (Ext.P2 series) and stay petitions (Ext.P5 series) before the Commissioner of Income Tax (Appeals), the 3rd respondent. The core dispute concerns the permissibility of deduction under Section 80P of the Act, specifically its applicability to Co-operative Societies. The petitioner highlighted that the High Court had previously disposed of similar writ petitions by directing the appellate authority to decide the appeals while keeping recovery proceedings in abeyance.

What were the issues?

1. Whether the High Court should direct the appellate authority to consider and pass orders on the petitioner's appeals against assessment orders concerning deductions under Section 80P of the Income Tax Act, and in the interim, keep recovery proceedings in abeyance? Assessee's Contention: The petitioner argued that the appeals filed before the 3rd respondent involve the crucial issue of the applicability of Section 80P deductions to 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 expeditiously and to stay recovery proceedings pending the appellate decision. Revenue's Contention: The judgment does not record any specific contentions from the revenue's side regarding the issues raised by the petitioner or the procedural directions sought.

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 TUESDAY, THE 21ST DAY OF JULY 2020 / 30TH ASHADHA, 1942 WP(C).No.8752 OF 2020(T) PETITIONER/S: PERINGOTTUKARA SERVICE CO-OPERATIVE BANK LTD NO.110 XVI/508 THANNIYAM, PERINGOTTUKARA P.O., KIZHAKENADA, THRISSUR-680 565, REPRESENTED BY ITS SECRETARY P.J.SHINY. 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(4), THRISSUR, INCOME TAX DEPARTMENT, AAYAKAR BHAVAN, INCOME TAX OFFICE, SHAKTHANTHAMPURAN NAGAR, THRISSUR-680 001. 3 COMMISSIONER OF INCOME TAX (APPEALS), THRISSUR, AAYAKARA BHAVAN, S.T.NAGAR, MUNICIPAL OFFICE RAOD, THRISSUR-680 001. OTHER PRESENT: SC: JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.07.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.8752 OF 2020(T) 2

JUDGMENT Against Ext.P1 series of assessment orders under the Income Tax Act,('The Act' for short) the petitioner has preferred Ext.P2 series of appeals and Ext.P5 series of stay petitions before the 3rd respondent.Exts.P3 and P4 series are the demand notices 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 series of appeals, 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 Exts.P3 and P4 series of demand notices, 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 SJ

WP(C).No.8752 OF 2020(T) 3

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER NO.AACAP4955G DATED 06.12.2019 ISSUED FOR THE YEAR 2012-13 BY THE 2ND RESPONDENT. EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER NO.ITBA/AST/S/143(3)/2019-20/1022456442(1) DATED 16.12.2019 ISSUED FOR THE YEAR 2017- 18 BY THE 2ND RESPONDENT. EXHIBIT P2 TRUE COPY OF THE APPEAL DATED 06.01.2020 FILED BEFORE THE 3RD RESPONDENT FOR THE ASSESSMENT YEAR 2012-13. EXHIBIT P2 A TRUE COPY OF THE APPEAL DATED 04.01.2020 FILED BEFORE THE 3RD RESPONDENT FOR THE ASSESSMENT YEAR 2017-18. EXHIBIT P3 TRUE COPY OF THE DEMAND NOTICE NO.PAN AACAP 4955G/2012-13 DATED 06.12.2019 FOR TYE YEAR 2012-13 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P3 A TRUE COPY OF THE DEMAND NOTICE NO.ITBA/AST/S/156/2019-20/1022457167(1) DATED 16.12.2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P4 TRUE COPY OF THE DEMAND NOTICE NO.ITBA/COM/F/17/2019-20/1025311330(1) DATED 17.02.2019 FOR THE YEAR 2012-13 ISSUED BY HE 2ND RESPONDENT. EXHIBIT P4 A TRUE COPY OF THE DEMAND NOTICE NO.ITBA/COM/F/17/2019-20/102533100746(1) DATED 17.02.2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P5 TRUE COPY OF THE STAY APPLICATION FILED ON 22.02.2020 BEFORE THE 3RD RESPONDENT IN EXT.P2 APPEAL. EXHIBIT P5 A TRUE COPY OF THE STAY APPLICATION FILED ON 22.02.2020 BEFORE THE 3RD RESPONDENT IN EXT.P2(A) APPEAL.

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