THANIYAM PANCHAYATH SERVICE CO-OPERTIVE BANK LTD. NO. R-387 vs. THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE

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WP(C)/19618/2020HC KeralaKLHC01049549202023 September 2020Author: HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition by directing the third respondent, the Commissioner of Income Tax (Appeals), to consider and pass orders on Ext.P2 appeal within an outer time limit of six months from the date of receipt of a copy of the judgment, after hearing the petitioner. The Court further directed that recovery steps pursuant to Ext.P3 demand notice, for the recovery of amounts confirmed by Ext.P1 assessment order, shall be kept in abeyance until such time as orders are passed by the third respondent as directed and communicated to the petitioner. The petitioner is required to produce a copy of the writ petition and the judgment before the third respondent for further action. The Court did not decide the merits of the deduction under Section 80P.

What were the facts?

The petitioner, Thaniyam Panchayath Service Co-operative Bank Ltd., has filed a writ petition challenging an assessment order (Ext.P1) passed under the Income Tax Act. The petitioner has filed an appeal (Ext.P2) against this order before the Commissioner of Income Tax (Appeals), the third respondent. The core issue in the appeal pertains to the permissibility of deduction under Section 80P of the Income Tax Act concerning co-operative societies. The petitioner seeks a direction for the appellate authority to decide the appeal within a specified timeframe and to keep recovery proceedings in abeyance until the appeal is disposed of. The respondents are the Central Board of Direct Taxes, the Income Tax Officer, and the Commissioner of Income Tax (Appeals).

What were the issues?

1. Whether the Appellate Authority (3rd respondent) should be directed to consider and pass orders on the appeal filed by the petitioner within a time frame? (Question of procedure/direction) 2. Whether recovery proceedings pursuant to the assessment order should be stayed pending the disposal of the appeal by the Appellate Authority? (Question of procedure/interim relief) Assessee's Contention: The petitioner argues that the issue involved in their appeal is the permissibility of deduction under Section 80P of the Income Tax Act, which is a significant matter for co-operative societies. They rely on the practice of this Court in similar cases where directions were issued to the Appellate Authority to decide appeals within a time frame and to stay recovery proceedings. The petitioner seeks the same relief. Revenue's Contention: The judgment records that the learned Standing Counsel appeared for the respondents, but no specific arguments or contentions were recorded for the revenue regarding the issues raised by the petitioner.

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 WEDNESDAY, THE 23RD DAY OF SEPTEMBER 2020 / 1ST ASWINA, 1942 WP(C).No.19618 OF 2020 PETITIONER/S: THANIYAM PANCHAYATH SERVICE CO-OPERTIVE BANK LTD. NO. R-387 P.O.KIZHUPPILLIKARA, THRISSUR-680 702, REPRESENTED BY ITS SECRETARY UNNIKRISHNAN K.V., BY ADVS. DR.K.P.PRADEEP SHRI.HAREESH M.R. SMT.T.THASMI RESPONDENT/S: 1 THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE MINISTRY OF FINANCE GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110 001, REPRESENTED BY ITS CHAIRMAN 2 INCOME TAX OFFICER, WARD (5), THRISSUR INCOME TAX DEPARTMENT, AAYAKAR BHAVAN, INCOME TAX OFFICE, SHAKTHANTHAMPURAN NAGAR, THRISSUR-680 001 3 COMMISSIONER OF INCOME TAX (APPEALS), THRISSUR,AAYKAR BHAVAN, S.T.NAGAR, MUNICIPAL OFFICE ROAD, THRISSUR-680 001 OTHER PRESENT: SC JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.09.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.19618 OF 2020 2

JUDGMENT Against Ext.P1 Assessment order under the Income Tax Act, the petitioner has preferred Ext.P2 appeal before the 3rd respondent. It is the case of the petitioner that the issue involved in the appeal is the permissibility of deduction under Section 80P of the Income Tax Act in its application to Co- operative Societies. In similar cases this Court has directed the Appellate Authority to consider the appeal itself within a time frame and to keep in abeyance the recovery proceedings till such time as the appeals are decided by the appellate authority.

2.

I have heard the learned counsel appearing for the petitioner and also the learned Standing counsel appearing for the respondents. On a consideration of the facts and circumstances of the case as also the submissions made across the Bar, and taking note of the fact that in similar matters, this Court has directed the Appellate Authority to consider and pass orders in the appeal and stayed the recovery of disputed amounts pending disposal of the appeal, this Writ petition is disposed directing the 3rd respondent to consider and pass orders on Ext.P2 appeal within an outer time limit of six months from the date of receipt of a copy of this judgment, after hearing the petitioner. Recovery steps pursuant to Ext.P3 demand notice, for recovery of amounts confirmed against the petitioner by Ext.P1 assessment order, shall be kept in abeyance till such time as orders are passed by the 3rd respondent as directed above and communicated to the petitioner. The WP(C).No.19618 OF 2020 3 petitioner shall produce a copy of the writ petition together with a copy of this judgment, before the 3rd respondent, for further action. A.K.JAYASANKARAN NAMBIAR JUDGE SJ

WP(C).No.19618 OF 2020 4

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE COMPUTATION SHEET OF THE ASSESSMENT ORDER NO ITBA/AST/S/115/2018- 19/1014284004(1) DATED 14.12.2018 ISSUED FOR THE YEAR 2016-17 BY THE 2ND RESPONDENT EXHIBIT P2 TRUE COPY OF THE APPEAL DATED 21-01-2019 FILED BEFORE THE 3RD RESPONDENT FOR THE ASSESSMENT YEAR 2016-17 EXHIBIT P3 TRUE COPY OF THE DEMAND NOTICE NO ITBA/AST/S/156/2018-19/1014284008(1) DATED 14.12.2018 ISSUED FOR THE YEAR 2016-17 BY THE 2ND RESPONDENT

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