PAPPINISSERI SERVICE CO-OPERATIVE BANK LTD vs. THE CENTRAL BOARD OF DIRECT TAXES

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WP(C)/8979/2020HC KeralaKLHC01023077202021 July 2020Author: HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, taking note of the petitioner's submissions and the fact that similar matters had been disposed of by directing the appellate authority to pass orders on the appeal while keeping recovery proceedings in abeyance, 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 appeal (Ext.P2) within a period of six months from the date of receipt of a copy of the judgment, after hearing the petitioner. Furthermore, recovery steps for the amounts confirmed against the petitioner by the assessment orders, particularly pursuant to the demand notice (Ext.P3), were ordered to be kept in abeyance until such time as the appellate authority passed its orders and communicated them to the petitioner. The High Court did not decide the merits of the Section 80P deduction.

What were the facts?

The petitioner, Pappinisseri Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala challenging an assessment order under the Income Tax Act. The petitioner had preferred an appeal (Ext.P2) and a stay petition (Ext.P4) before the 3rd respondent, the Commissioner of Income Tax (Appeals). 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 and pass orders on the appeals while keeping recovery proceedings in abeyance. A demand notice (Ext.P3) had also been issued.

What were the issues?

1. Whether the High Court should direct the appellate authority to consider and pass orders on the petitioner's appeal concerning the deduction under Section 80P of the Income Tax Act, and in the interim, keep recovery proceedings in abeyance? (Question of procedure and interim relief, turning on the High Court's writ jurisdiction and principles of natural justice). Assessee's Contention: The petitioner argued that the issue involved the applicability of Section 80P to co-operative societies, a matter that had been subject to previous High Court orders. They relied on prior judgments where the High Court directed appellate authorities to decide appeals expeditiously and stay recovery proceedings. Revenue's Contention: The judgment does not record any specific contentions made by the respondents.

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.8979 OF 2020(V) PETITIONER: PAPPINISSERI SERVICE CO-OPERATIVE BANK LTD L.L.121,PAPPINISSERI.P.O, KANNUR-670561, REPRESENTED BY ITS SECRETARY SHYLAJA.P.U. BY ADVS. DR.K.P.PRADEEP SMT.T.THASMI RESPONDENTS: 1 THE CENTRAL BOARD OF DIRECT TAXES MINISTRY OF FINANCE,GOVERNMENT OF INDIA,NORTH BLOCK,NEW DELHI-110001, REPRESENTED BY ITS CHAIRMAN. 2 INCOME TAX OFFICER, WARD 1 AND TPS,KANNUR,AAYAKAR BHAVAN, OFFICE OF ADDITIONAL/JOINT CIT,KONNOTHUMCHAL,CHOVVA.P.O, KANNUR-670006. 3 COMMISSIONER OF INCOME TAX (APPEALS), KOZHIKODE,AAYAKAR BHAVAN,INCOME TAX OFFICE,MANANCHIRA,KOZHIKODE-673001. BY ADV.SRI.CHRITOPHER ABRAHAM, SC 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.8979 OF 2020(V) 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.P4 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

WP(C).No.8979 OF 2020(V) 3 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 mns

WP(C).No.8979 OF 2020(V) 4

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER NO.ITBA/AST/S/143(3)/2019- 20/1022201582(1)DATED 12-12-2019 ISSUED FOR THE YEAR 2017-19 BY THE 2ND RESPONDENT EXHIBIT P2 TRUE COPY OF THE APPEAL DATED 18.01.2020 FILED BEFORE THE 3RD RESPONDENT FOR THE ASSESSMENT YEAR 2017-18 EXHIBIT P3 TRUE COPY OF THE DEMAND NOTICE NO.ITBA/AST/S/156/2019-20/1022201691(1) DATED 12-12-2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT EXHIBIT P4 TRUE COPY OF THE STAY APPLICATION FILED ON 14.03.2020 BEFORE THE 3RD RESPONDENT IN EXT.P2 APPEAL. RESPONDENTS EXHIBITS:NIL //TRUE COPY// P.A TO JUDGE

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