THE THIROOR SERVICE CO-OPERATIVE BANK LTD.NO.4140, THIROOR, vs. COMMISSIONER OF INCOME TAX

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WP(C)/21112/2021HC KeralaKLHC01054026202105 October 2021Author: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS4 pages
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What did the High Court hold?

The High Court of Kerala held that in similar cases, it has directed the appeals to be disposed of in a time-bound manner. The petitioner stands on the same footing as those other cases, and there is no reason to deviate from the established practice. Accordingly, the Court directed the 2nd respondent (Principal Commissioner of Income Tax) to consider and pass appropriate orders on Ext.P3 appeal filed by the petitioner as expeditiously as possible. Pending the disposal of the appeal, all coercive proceedings pursuant to the assessment order (Ext.P1) were ordered to be kept in abeyance. The principle established is that the High Court can direct expeditious disposal of pending appeals, especially when supported by Supreme Court precedents, and can grant interim protection against coercive recovery.

What were the facts?

The petitioner, The Thiroor Service Co-operative Bank Ltd., is an assessee under the Income Tax Act. For the assessment year 2018-2019, the Assessing Officer (3rd respondent) completed the assessment by disallowing the claim for benefits under Section 80P of the Act. The petitioner challenged this assessment order by filing an appeal (Ext.P3) before the first respondent, the Commissioner of Income Tax (National Faceless Appeal Centre). The appeal is currently pending. The petitioner apprehends coercive steps being taken by the revenue authorities while the appeal is undecided.

What were the issues?

1. Whether the petitioner is entitled to a direction for the expeditious disposal of their appeal pending before the Commissioner of Income Tax, considering the pendency of similar matters and 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]? (Question of procedure and mixed law and fact, concerning the principles of natural justice and efficient disposal of tax appeals). Assessee's Contention: The petitioner argues that this Court has consistently directed the disposal of appeals in similar cases where deductions under Section 80P were disallowed, relying on the Supreme Court's judgment in the Mavilayi Service Co-operative Bank case. They seek a similar direction. Revenue's Contention: The judgment does not record any specific contentions from the revenue.

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 BECHU KURIAN THOMAS TUESDAY, THE 5TH DAY OF OCTOBER 2021 / 13TH ASWINA, 1943 WP(C) NO. 21112 OF 2021 PETITIONER: THE THIROOR SERVICE CO-OPERATIVE BANK LTD.NO.4140, THIROOR, MULANKUNNATHUKAVU.P.O, THRISSUR-680581,REPRESENTED BY ITS SECRETARY. BY ADV P.C.SASIDHARAN RESPONDENTS: 1 COMMISSIONER OF INCOME TAX NATIONAL FACELESS APPEAL CENTRE, DELHI-110001. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, O/O THE PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, MANANCHIRA, KOZHIKODE,KERALA-673001. 3 THE INCOME TAX OFFICER, WARD 2(1), THRISSUR, OFFICE OF THE INCOME TAX OFFICER, AAYAKAR BHAVAN, SAKTHANTHAMPURAN NAGAR, THRISSUR-680001. SRI.JOSE JOSEPH-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.10.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C)No.21112 of 2021 2 BECHU KURIAN THOMAS, J. ---------------------------------------- W.P.(C)No.21112 of 2021 ---------------------------------------- Dated this the 5th day of October, 2021

JUDGMENT Petitioner is an assessee under the Income Tax Act. For the assessment year 2018-2019 the assessment was completed by the 3rd 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 first respondent. It is submitted that the said appeal is pending consideration and that in the meantime petitioner is apprehending coercive steps being taken.

2.

It is the contention of the petitioner that in similar cases were the claim for deduction under Section 80P of the Act has been claimed, 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.

Commissioner of Income Tax, Calicut and Others [2021 (1) KLT 485], petitioner seeks such a similar relief in this case also.

3.

It is true that 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.

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. 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/05.10.2021

Appendix — schedule of exhibits
APPENDIX OF WP(C) 21112/2021 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 23/04/2021 ALONG WITH COMPUTATION SHEET Exhibit P2 TRUE COPY OF THE DEMAND NOTICE DATED 23/04/2021 Exhibit P3 TRUE COPY OF APPEAL DATED 28/04/2021 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. Exhibit P4 TRUE COPY OF THE ACKNOWLEDGEMENT OF RECEIPT OF FORM SHOWING THE DATE OF FILING AS 28/04/2021 Exhibit P5 TRUE COPY OF THE ORDER DATED 02/07/2021 Exhibit P6 TRUE COPY OF THE STAY PETITION DATED 06/07/2021 Exhibit P7 TRUE COPY OF THE JUDGMENT IN W.A.NO.1536 OF 2019 DATED 01/07/2019 Exhibit P8 TRUE COPY OF THE JUDGMENT IN W.P. (C)N0.14282 OF 2021 DATED 19/07/2021 .

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