THE NAGALASSERY SERVICE CO-OPERATIVEBANK LTD., vs. THE INCOME TAX OFFICER,

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WP(C)/9960/2020HC KeralaKLHC01025427202015 May 2020Author: HONOURABLE MR. JUSTICE GOPINATH P.4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala directed the 3rd respondent, the Income Tax Appellate Tribunal, Kochi Bench, to consider and pass orders on the stay petition (Ext.P4) within a period of four months from the date of receipt of a copy of the judgment. The Court further directed that any steps initiated by the Income Tax Department for recovery of amounts due under the assessment order shall be kept in abeyance until orders are passed on the stay petition and communicated to the petitioner. The Court's decision is based on the precedent set by a Division Bench of the same High Court in a similar matter. The core principle is to ensure that the assessee's right to seek a stay is considered promptly, and recovery is deferred pending the Tribunal's decision on the stay application.

What were the facts?

The petitioner, The Nagalassery Service Co-operative Bank Ltd., is challenging the rejection of its claim for the benefit of Section 80P of the Income Tax Act. This claim was denied by the Assessing Officer and subsequently by the Commissioner of Income Tax (Appeals). The petitioner filed an appeal before the Income Tax Appellate Tribunal and also a stay petition. This writ petition was filed before the High Court of Kerala seeking a direction to the Tribunal to consider and pass orders on the stay application. The assessment year in dispute is 2015-16. The Assessing Officer's order is dated 20.11.2017, and the Commissioner (Appeals)' order is dated 03.03.2020. The appeal and stay petition were filed before the Tribunal on 05.05.2020.

What were the issues?

1. Whether the Income Tax Appellate Tribunal should be directed to consider and pass orders on the petitioner's stay application, and if so, within what timeframe. Assessee's Contention: The petitioner relies on a judgment of a Division Bench of the High Court of Kerala in similar circumstances, which directed the Appellate Tribunal to consider and pass orders on a stay petition within four months and to keep recovery proceedings in abeyance until such orders were passed. Revenue's Contention: The judgment does not record any specific contentions made by the revenue in this writ petition. The respondents are the Income Tax Officer, the Commissioner of Income Tax (Appeals), and the Income Tax Appellate Tribunal, represented by the Government Pleader.

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 GOPINATH.P. FRIDAY, THE 15TH DAY OF MAY, 2020/25TH VAISAKHA, 1942 W.P(C) NO.9960 OF 2020 PETITIONER :: THE NAGALASSERY SERVICE CO-OPERATIVE BANK LTD., KOOTTANAD POST, KOOTTANAD, PATTAMBI, PALAKKAD – 679 533, REPRESENTED BY ITS SECRETARY, KRISHNAKUMAR N., AGED 38, S/O. NARAYANAN NAIR. BY ADVS. SRI. HARISANKAR V. MENON SMT. MEERA V.MENON SMT.KRISHNA K RESPONDENTS:: 1. THE INCOME TAX OFFICER, WARD 3, AYAKAR BHAVAN, PALAKKAD – 678 014. 2. THE COMMISSIONER OF INCOME TAX (APPEALS), THRISSUR – 680 021. 3. THE INCOME TAX APPELLATE TRIBUNAL, AYAKAR BHAVAN, KAKKANADU, KOCHI – 682 030, REPRESENTED BY ITS REGISTRAR. R1-3 BY GOVERNMENT PLEADER SRI. VINITHA.B THIS WRIT PETITION HAVING COME UP FOR ADMISSION ON 15.05.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C) NO.9960 OF 2020 2 Dated this the 15th day of May, 2020

JUDGMENT This writ petition has been filed praying inter- alia for a direction to the 3rd respondent Tribunal to consider and pass orders on an application for stay.

2.

The petitioner claimed the benefit of Section 80P of the Income Tax Act. This claim was rejected by the Assessing Officer as well as by the Commissioner (Appeals).

3.

The petitioner places reliance on the judgment of a Division Bench of this Court, which is produced as Ext.P5 along with W.P.(C). No.9768/2020. The Division Bench has in similar circumstances, directed the Appellate Tribunal to consider and pass orders on the stay petition within a period of four months from the date of r2014eceipt of a copy of the judgment and further directed that any proceedings

W.P(C) NO.9960 OF 2020 3 initiated for recovery of amounts due from the petitioner shall be kept in abeyance till orders are passed on the stay petition and communicated to the petitioner.

4.

In the light of the above, this writ petition is disposed of directing the 3rd respondent, the Income Tax Appellate Tribunal, Kochi Bench, to consider and pass orders on the stay petition marked as Ext.P4 in this writ petition, within a period of four months from the date of receipt of a copy of this judgment. Till orders are so passed and communicated to the petitioner, steps (if any) initiated by the Income Tax Department for recovery of amounts due under the a2014ssessment order, shall be kept in abeyance. With these directions, this writ petition is disposed of. ( )

GOPINATH.P, JUDGE pm

W.P(C) NO.9960 OF 2020 4 APPENDIX PETITIONERS EXTS. EXT. P1. COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2015-16 DATED 20-11-2017. EXT. P2. COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2015-16 DATED 03-03-2020. EXT. P3. COPY OF THE APPEAL FILED BEFORE THE 3RD RESPONDENT DATED 05-05-2020. EXT. P4. COPY OF PETITION FOR STAY FILED BEFORE THE 3RD RESPONDENT DATED 05-05-2020. EXT. P5. COPY OF JUDGMENT IN W.P.(C)-TMP – 36/2020 OF THE HON’BLE HIGH COURT OF KERALA DATED 11-04-2020. RESPONDENTS EXHIBITS: NIL

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