KOLLAM JILLA EMPLOYEES AND PENSIONERS CO-OPERATIVE SOCIETY vs. THE CENTRAL BOARD OF DIRECT TAXES

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WP(C)/9034/2020HC KeralaKLHC01023220202021 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 3rd respondent (Commissioner of Income Tax (Appeals)) to consider and pass orders on the petitioner's appeal (Ext.P2) within six months from the date of receiving a copy of the judgment, after hearing the petitioner. The Court further directed that recovery steps for the amounts confirmed by the assessment orders, particularly pursuant to the demand notice (Ext.P3), shall be kept in abeyance until the appellate authority passes its orders and communicates them to the petitioner. The reasoning is based on the precedent of similar matters where the High Court had issued such directions.

What were the facts?

The petitioner, Kollam Jilla Employees and Pensioners Co-operative Society Limited, filed a writ petition before the High Court of Kerala. The petition challenged an assessment order under the Income Tax Act, against which the petitioner had filed an appeal (Ext.P2) and a stay petition (Ext.P4) before the Commissioner of Income Tax (Appeals). The core issue in the appeal concerned the permissibility of deduction under Section 80P of the Act for Co-operative Societies. The petitioner pointed out that the High Court had previously disposed of similar writ petitions by directing the appellate authority to decide the appeal and keep 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 petitioner's appeal against the assessment order, and in the interim, keep recovery proceedings in abeyance? (Question of procedure and interim relief, turning on the court's inherent powers and principles of natural justice). Assessee's Contention: The petitioner argued that the appeal involves the deductibility under Section 80P of the Income Tax Act, a matter on which the High Court has previously granted relief in similar cases by directing the appellate authority to decide the appeal and stay recovery. Revenue's Contention: The judgment does not record any specific contentions from 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 TUESDAY, THE 21ST DAY OF JULY 2020 / 30TH ASHADHA, 1942 WP(C).No.9034 OF 2020(D) PETITIONER/S: KOLLAM JILLA EMPLOYEES AND PENSIONERS CO-OPERATIVE SOCIETY LIMITED NO.Q 1568,CONGRESS BHAVAN BUILDING, T.B.JUNCTION, KOTTARAKKARA, KOLLAM-691 506, REPRESENTED BY ITS PRESIDENT B.PRADEEP KUMAR 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-110 001, REPRESENTED BY ITS CHAIRMAN 2 INCOME TAX OFFICER, CIRCLE,KOLLAM, INCOME TAX DEPARTMENT,AAYAKAR BHAVAN, INCOME TAX OFFICE, NEAR KARBALA JUNCTION, RAILWAY STATION ROAD, KOLLAM-691 001 3 COMMISSIONER OF INCOME TAX (APPEALS) THIRUVANANTHAPURAM, AAYAKAR BHAVAN, INCOME TAX OFFICE, KOWDIAR, THIRUVANANTHAPURAM-695 003 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.9034 OF 2020(D) 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.P4 stay petition before the 3rd respondent. Exts.P3 is the demand notice 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 demand notice, 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.9034 OF 2020(D) 3

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER NO.ITBA/AST/S/144/219-20/1022998233 (1) DATED 24.12.2019 ISSUED FOR THE YEAR 2017- 18 BY THE 2ND RESPONDENT EXHIBIT P2 TRUE COPY OF THE APPEAL DATED 14.02.2020 FILED BEFORE THE 3RD RESPONDENT FOR THE ASSESSMENT YEAR 2017-18 EXHIBIT P3 TRUE COPY OF THE DEMAND NOTICE NO.ITBS/AST/S/156/2019-20/1022998298910 DATED 24.12.2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT EXHIBIT P4 TRUE COPY OF THE STAY APPLICATION FILE DON 05.03.2020 BEFORE THE 3RD RESPONDENT IN EXT.P2 APPEAL

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