M/S EAST ELERI SERVICE CO-OPERATIVE BANK LTD. vs. ADDITIONAL/ JOINT/DEPUTY AND ASSISTANT COMMISSIONER OF INCOME TAX
What did the High Court hold?
The High Court directed the second respondent (Commissioner of Income Tax (Appeals)) to consider and pass appropriate orders on the petitioner's appeal (Ext.P3) expeditiously and in a time-bound manner. Pending the disposal of the appeal, all coercive proceedings pursuant to the assessment order (Ext.P1) were ordered to be kept in abeyance. The Court noted that the Office Memorandum of 2016 as revised in 2017 cannot control the discretionary powers of the appellate authority. The Court followed its consistent practice in similar cases involving Section 80P deductions, referencing the Supreme Court's decision in Mavilayi Service Co-operative Bank. The Court found no reason to depart from this practice. The issue of the merits of the Section 80P claim was not decided.
What were the facts?
The petitioner, M/s East Eleri Service Co-operative Bank Ltd., is an assessee under the Income Tax Act. For the assessment year 2018-2019, the first respondent completed the assessment by disallowing the claim of benefits under Section 80P of the Act. The petitioner challenged this assessment order by filing an appeal (Ext.P3) before the second respondent, the Commissioner of Income Tax (Appeals). The appeal was pending. The petitioner was also apprehensive of coercive recovery steps being taken by the revenue. The petitioner had received a demand (Ext.P5) to deposit 20% of the sum adjudged in the assessment order for a stay of recovery proceedings.
What were the issues?
1. Whether the petitioner is entitled to a stay of coercive recovery proceedings pending disposal of their appeal before the Commissioner of Income Tax (Appeals)? (Question of law and fact, concerning the powers of the appellate authority and the Income Tax Act). Assessee's contention: The petitioner argued that their appeal against the assessment order is pending and they are apprehending coercive steps. They relied on the High Court's consistent practice of directing disposal of appeals in similar cases involving Section 80P deductions, referencing the Supreme Court's decision in Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others [2021 (1) KLT 485]. The petitioner also pointed out the demand for a 20% deposit for a stay. Revenue's contention: The judgment does not record any specific contentions made by the revenue.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
JUDGMENT Petitioner is an assessee under the Income Tax Act. For the assessment year 2018-2019 the assessment was completed by the first respondent, disallowing the claim of benefits under Section 80P of the Act. Challenging the order of assessment, petitioner has preferred an appeal as Ext.P3 before the 2nd respondent. It is submitted that the said appeal is pending consideration and that, in the meantime, petitioner is apprehending coercive steps being taken.
Having regard to the fact that in similar cases were the claim for deduction under Section 80P of the Act is involved, this Court has been consistently directing the appeal itself to be disposed of, taking into reckoning the decision rendered by the Supreme Court in Mavilayi Service
Co-operative
Bank
and Others
v.
WP(C) NO. 25796 OF 2021 3 Commissioner of Income Tax, Calicut and Others [2021 (1) KLT 485], this writ petition can also be disposed of in similar lines.
It is pointed out by the learned counsel for the petitioner that by Ext.P5, the assessing officer has demanded the petitioner to deposit 20% of the sum adjudged in Ext.P1 for the purpose of staying further proceedings for recovery.
It is a settled proposition that the Office Memorandum of 2016 as revised in 2017 cannot control the discretionary powers of the appellate authority. Since the appeal is pending consideration, Ext.P3 may not have any relevance for the time being, in view of the nature of orders I propose to issue in this case.
As mentioned earlier, in similar cases, this Court has directed the appeal to be disposed of in a time bound manner. Petitioner also stands in the same footing and there is no reason why a departure should be made from the other cases.
WP(C) NO. 25796 OF 2021 4
Accordingly, there will be a direction to the 2nd respondent to consider and pass appropriate orders on Ext.P3 appeal filed by the petitioner, as expeditiously as possible in a time bound manner. Pending such consideration, all coercive proceedings pursuant to Ext.P1 assessment order shall be kept in abeyance. The writ petition is disposed of as above. BECHU KURIAN THOMAS JUDGE AJ
WP(C) NO. 25796 OF 2021 5
Appendix — schedule of exhibits
More judgments on Section 80P
- Shree Bandharda Seva Sahkari Mandli Ltd… vs Income Tax Officer Ward -4, JunagadhITA 881/RJT/2025[2019-20]Status: Disposed19 Oct 2026AY 2019-20
- Duddukuru Primary Agricultural Cooperative… vs ITO, Ward - 1, TadepalligudemITA 258/VIZ/2026[2015-16]Status: Disposed16 Oct 2026AY 2015-16
- Parthasaradhi Mutually Aided Co-Operative… vs Income-Tax Officer, Ward-17(1), HyderabadITA 2322/HYD/2026[AY 2016-17]Status: Disposed16 Oct 2026
- Jijamata Mahila Gramin Bigar Sheti Sahakari… vs ITO Ward -1, BhandraITA 102/NAG/2026[2020-21]Status: Disposed12 Oct 2026AY 2020-21
- Shri Na vs Ari Khedut Sahkari Society Ltd…ITA 362/SRT/2025[2016-17]Status: Disposed9 Oct 2026AY 2016-17
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