THE NAGALASSERY SERVICE CO-OPERATIVE BANK LTD. vs. THE ADDITIONAL/JOINT/DEPUTY /ASST.COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER

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WP(C)/10665/2021HC KeralaKLHC01029167202130 April 2021Author: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS4 pages
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What did the High Court hold?

The High Court of Kerala, while considering the writ petition, acknowledged the pending statutory appeal and stay petition before the 2nd respondent (National Faceless Appeal Centre, Delhi). The Court directed the 2nd respondent to consider and pass appropriate orders on the stay petition filed along with the appeal (Ext.P3) within a period of four months from the date of receipt of a copy of the judgment. The order emphasized that the stay petition should be passed after hearing the petitioner, and the petitioner was directed to cooperate. Crucially, the Court ordered that all coercive action for realizing the amount due under Ext.P1 shall be kept in abeyance until the disposal of the stay petition. The writ petition was allowed in terms of these directions.

What were the facts?

The petitioner, The Nagalassery Service Co-operative Bank Ltd., a co-operative society providing credit facilities, claimed a deduction under Section 80P(2)(a)(i) of the Income Tax Act, 1961. The Assessing Officer disallowed this claim through an order dated Ext.P1. The petitioner filed an appeal against Ext.P1 before the National Faceless Appeal Centre, Delhi (2nd respondent), along with a stay petition. Apprehending coercive recovery actions based on Ext.P1, the petitioner filed this writ petition seeking a direction for the expeditious disposal of the appeal and stay petition, and for a stay on recovery proceedings.

What were the issues?

1. Whether the petitioner is entitled to a direction for the expeditious disposal of the pending appeal and stay petition before the National Faceless Appeal Centre, Delhi? 2. Whether the petitioner is entitled to a stay of coercive recovery actions pursuant to the Assessing Officer's order (Ext.P1) until the disposal of the stay petition? Assessee's Contentions: The petitioner, represented by its Secretary, argued that an appeal and stay petition were filed against the Assessing Officer's order disallowing the Section 80P(2)(a)(i) claim. They sought a direction for the speedy disposal of these statutory remedies and a stay on recovery proceedings to avoid coercive action. Revenue's Contentions: The judgment does not record any specific contentions from the revenue.

Which sections of the Income-tax Act were involved?

Section 80P(2)(a)(i)

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 FRIDAY, THE 30TH DAY OF APRIL 2021/10TH VAISAKHA, 1943 W.P.(C)No.10665 OF 2021(G) 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 RESPONDENTS: 1 THE ADDITIONAL/JOINT/DEPUTY/ASST.COMMISSIONER OF INCOME TAX/INCOME-TAX OFFICER, NATIONAL e-ASSESSMENT CENTRE, DELHI-110 001. 2 NATIONAL FACELESS APPEAL CENTRE, DELHI-110 001, REPRESENTED BY THE PRINCIPAL CHIEF COMMISSIONER. OTHER PRESENT: GOVERNMENT PLEADER, SRI.MANURAJ K.J. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30.04.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C)No.10665 OF 2021(G) 2

JUDGMENT The petitioner is a Co-operative society carrying on business of providing credit facility to its members. It claimed benefit under Section 80P(2)(a)(i) of the Income Tax Act, 1961. However, the assessing officer disallowed the claim by Ext.P1 order. Challenging Ext.P1 order, an appeal has been preferred as Ext.P3 before the 2nd respondent. Along with the said appeal, a stay petition has been filed. Apprehending coercive action to recover the amounts imposed under Ext.P1, the petitioner has preferred this writ petition, seeking a direction to dispose of the appeal as well as the stay petition and sought for a stay of recovery of all steps pursuant to Ext.P1. Having considered the contentions raised and in view of the stay petition pending consideration in the statutory appeal, I direct the 2nd

W.P.(C)No.10665 OF 2021(G) 3 respondent to consider and pass appropriate orders on the stay petition filed along with Ext.P3 appeal within a period of four months from the date of receipt of a copy of the judgment. The orders shall be passed after hearing the petitioner and the petitioner shall co-operate with the 2nd respondent in considering the stay petition. Till the disposal of the stay petition, all coercive action for realising the amount due under Ext.P1 shall be kept in abeyance. A copy of the judgment shall be furnished to the 2nd respondent by the petitioner without any unnecessary delay. The writ petition is allowed as above. BECHU KURIAN THOMAS JUDGE ss

W.P.(C)No.10665 OF 2021(G) 4

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2018-19. EXHIBIT P2 COPY OF THE S.O. NO.3296(E), ISSUED BY THE MINISTRY OF FINANCE, NEW DELHI. EXHIBIT P2(A) COPY OF THE S.O. NO.3297(E) ISSUED BY THE MINISTRY OF FINANCE, NEW DELHI. EXHIBIT P3 COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P3(A) COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE ADDITIONAL/JOINT/ASSISTANT COMMISSIONER OF INCOME TAX, COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, DELHI. EXHIBIT P4 COPY OF JUDGMENT IN W.P.C NO.5849/2021 OF THIS HON'BLE COURT.

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