PERUMBAVOOR URBAN CO-OPERATIVE BANK LTD NO.2024 vs. THE CENTRAL BOARD OF DIRECT TAXES

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WP(C)/8700/2020HC KeralaKLHC01022543202021 July 2020Author: HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR3 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 the petitioner's appeal (Ext.P2) within a period of six months from the date of receiving a copy of the judgment. The court further directed that recovery steps for the amounts confirmed against the petitioner by the assessment orders, particularly pursuant to the demand notices (Exts.P3 and P4), shall be kept in abeyance until the appellate authority passes its orders and communicates them to the petitioner. The reasoning is based on the High Court's previous practice in similar matters where appeals concerning the deduction under Section 80P were directed to be considered expeditiously while staying recovery.

What were the facts?

The petitioner, Perumbavoor Urban Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala challenging an assessment order (Ext.P1) under the Income Tax Act. The petitioner had preferred an appeal (Ext.P2) and a stay petition (Ext.P5) before the Commissioner of Income Tax (Appeals), the third respondent. Demand notices (Exts.P3 and P4) were also issued. The core issue in the appeal concerned the permissibility of deduction under Section 80P of the Act, specifically its applicability to Co-operative Societies. The petitioner pointed out that the High Court had previously disposed of similar writ petitions by directing the appellate authority to consider and pass orders on the appeals while keeping recovery proceedings in abeyance.

What were the issues?

1. Whether the High Court should direct the appellate authority to consider and pass orders on the appeal filed by the petitioner against the assessment order, and in the interim, keep recovery proceedings in abeyance. Assessee's Contention: The petitioner argued that the appeal involved the critical issue of the permissibility of deduction under Section 80P of the Income Tax Act concerning Co-operative Societies. They relied on previous High Court judgments where similar directions were issued, allowing for the consideration of appeals while suspending recovery. Revenue's Contention: The judgment does not record any specific contentions made by the revenue in response to the writ petition. The court's decision appears to be based on the petitioner's submissions and prior judicial precedent.

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 TUESDAY, THE 21ST DAY OF JULY 2020 / 30TH ASHADHA, 1942 WP(C).No.8700 OF 2020(J) PETITIONER/S: PERUMBAVOOR URBAN CO-OPERATIVE BANK LTD NO.2024 PERUMBAVOOR, PERUMBAVOOR-683542, REPRESENTED BY ITS SECRETARY BEEVIJA P.H. BY ADVS. DR.K.P.PRADEEP 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-110001, REPRESENTED BY ITS CHAIRMAN. 2 INCOME TAX OFFICER, WARD-3, ALUVA, INCOME TAX DEPARTMENT, K.A.P.COMMERCIAL COMPLEX, OFFICE OF ADDITIONAL CIT, ALUVA RANGE, R.S.ROAD, ALUVA-683101. 3 COMMISSIONER OF INCOME TAX (APPEALS), KOCHI, POORNIMA BUILDINGS, PANAMPILY NAGAR, KOCHI- 682036. OTHER PRESENT: SC- SRI.CHRITOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.07.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.8700 OF 2020(J) 2

JUDGMENT Against Ext.P1 assessment order under the Income Tax Act,('The Act' for short) the petitioner has preferred Ext.P2 appeal and Ext.P5 stay petition before the 3rd respondent. Exts.P3 and P4 are the demand notices issued. It is the case of the petitioner that the issue involved in the appeal pertains to the permissibility of deduction under Section 80P of the Act in its applicability to Co-operative Societies. It is pointed that in similar matters this Court has already disposed the writ petition by directing the appellate authority to consider and pass orders in the appeal and keep in abeyance the recovery proceedings pursuant to the assessment orders in the meanwhile.

Taking note of the said submission, and finding that this Court has in similar matters directed the appellate authority to pass orders in the appeal, and to keep in abeyance the recovery proceedings in the meanwhile, the writ petition is disposed by directing the 3rd respondent to consider and pass orders on Ext.P2 appeal, within a period of six months from the date of receipt of a copy of this judgment, after hearing the petitioner. Recovery steps for recovery of amounts confirmed against the petitioner by the assessment orders in question, and in particular pursuant to Exts.P3 and P4 demand notices, shall be kept in abeyance till such time as orders are passed by the appellate authority as directed above and the orders communicated to the petitioner. A.K.JAYASANKARAN NAMBIAR JUDGE WP(C).No.8700 OF 2020(J) 3

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER NO.ITBA/AST/S/143(3)/2019-20/1023529575(1) DATED 31.12.2019 ISSUED FOR THE YEAR 2017- 18 BY THE 2ND RESPONDENT. EXHIBIT P2 TRUE COPY OF THE APPEAL DATED 27.01.2020 FILED BEFORE THE 3RD RESPONDENT FOR THE ASSESSMENT YEAR 2017-18. EXHIBIT P3 TRUE COPY OF THE DEMAND NOTICE NO.ITBA/AST/S/156/2019-20/1023529673(1) DATED 31.12.2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P4 TRUE COPY OF THE DEMAND NOTICE NO.ITBA/COM/F/17/2019-20/1024824809(1) DATED 06.02.2020 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P5 TRUE COPY OF THE STAY APPLICATION FILED ON 10.02.2020 BEFORE THE 3RD RESPONDENT IN EXT.P2 APPEAL.

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