THE MUNDUR SERVICE CO-OPERATIVE BANK LTD R.189 vs. THE INCOME TAX APPELLATE TRIBUNAL

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WP(C)/14299/2020HC KeralaKLHC01036267202015 July 2020Author: HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the Income Tax Appellate Tribunal (ITAT), the first respondent, to consider and pass orders on the appeals filed by the petitioner (Exts.P3 to P7) within six months from the date of receipt of a copy of the judgment. The Court clarified that until the ITAT passes its orders and communicates them to the petitioner, recovery steps for the amounts confirmed by the first appellate orders (Exts.P1 and P2) shall be kept in abeyance. The petitioner is to provide a copy of the writ petition and the judgment to the ITAT for further action. The specific finding on the permissibility of deduction under Section 80P was not decided by the High Court, as it was remitted to the ITAT for consideration.

What were the facts?

The petitioner, The Mundur Service Co-operative Bank Ltd, has filed appeals (Exts.P3 to P7) and stay petitions (Exts.P9 to P13) before the Income Tax Appellate Tribunal (ITAT), the first respondent, against first appellate orders (Exts.P1 and P2). The petitioner contends that recovery proceedings are being initiated against them based on these orders, even before their stay petitions are considered by the ITAT. The issue under appeal concerns the permissibility of deduction under Section 80P of the Income Tax Act in relation to co-operative societies.

What were the issues?

1. Whether the ITAT should consider the appeals filed by the petitioner concerning the permissibility of deduction under Section 80P of the Income Tax Act in relation to co-operative societies. 2. Whether recovery proceedings should be stayed pending the disposal of the appeals before the ITAT. Assessee's Contentions: The petitioner argues that recovery steps are being taken pursuant to the first appellate orders despite pending stay petitions before the ITAT. They rely on the fact that the appeals pertain to a significant issue regarding deductions under Section 80P for co-operative societies. Revenue's Contentions: The judgment does not record 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 A.K.JAYASANKARAN NAMBIAR WEDNESDAY, THE 15TH DAY OF JULY 2020 / 24TH ASHADHA, 1942 WP(C).No.14299 OF 2020 PETITIONER: THE MUNDUR SERVICE CO-OPERATIVE BANK LTD R.189 P.O ANJUR, MUNDUR, THRISSUR 680 541 REPRESENTED BY ITS SECRETARY BY ADV. SRI.P.C.SASIDHARAN RESPONDENTS: 1 THE INCOME TAX APPELLATE TRIBUNAL 1ST FLOOR, KENDRIYA BHAVAN, KAKKANAD, ERNAKULAM, COCHIN 682 037, REPRESENTED BY ITS ASSISTANT REGISTRAR 2 THE INCOME TAX OFFICER, WARD 2(3), THRISSUR, OFFICE OF THE INCOME TAX OFFICER, SAKTHANTHAMPURAN NAGAR, THRISSUR 680 001 BY ADV. SRI.JOSE JOSEPH,SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.07.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.14299 OF 2020 2

JUDGMENT

Against Exts.P1 and P2 first appellate orders under the Income Tax Act, the petitioner has preferred Exts.P3 to P7 appeals and Exts.P9 to P13 stay petitions before the 1st respondent. It is a case of the petitioner that even before consideration of Exts.P9 to P13 stay petitions, steps are afoot to recover amounts due from the petitioner pursuant to Exts.P1 and P2 first appellate orders.

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 the issue involved in the appeal pertains to the permissibility of deduction under Section 80P of the Income Tax Act in its relation to Co- operative societies, and that this Court has in similar cases directed the appeals to be considered by the appellate authority and stayed the recovery proceedings from the assessee in the meanwhile, I dispose the Writ Petition with a direction to the 1st respondent to consider and pass orders on Exts.P3 to P7 appeals within six months from the date of receipt of a copy of this judgment, after hearing the petitioner. It is made clear that till such time as orders are passed by the 1st respondent as WP(C).No.14299 OF 2020 3 directed and the order communicated to the petitioner recovery steps for recovery of amounts confirmed against the petitioner by Exts.P1 and P2 first appellate orders shall be kept in abeyance. The petitioner shall produce a copy of the writ petition together with a copy of this judgment, before the 1st respondent, for further action. A.K.JAYASANKARAN NAMBIAR

JUDGE mns/15.7.2020

WP(C).No.14299 OF 2020 4

Appendix — schedule of exhibits
APPENDIX PETITIONERS EXHIBITS EXHIBIT -P1 TRUE COPY OF THE ORDER DATED 6.3.2020 PASSED BY THE COMMISSIONER OF INCOME TAX(APPEALS) EXHIBIT P2- TRUE COPY OF THE ORDER DATED 10.03.2020 PASSED BY THE COMMISSIONER OF INCOME TAX(APPEALS) EXHIBIT P3- TRUE COPY OF THE APPEAL DATED 24.06.2020 FILED AGAINST THE ORDER IN APPEAL NO.ITA NO.1126/16-17 EXHIBIT P4 TRUE COPY OF THE APPEAL DATED 24.06.2020 FILED AGAINST THE ORDER IN APPEAL NO.ITA NO.241/19-20 EXHIBIT P5- TRUE COPY OF THE APPEAL DATED 24.06.2020 FILED AGAINST THE ORDER IN APPEAL NO.ITA NO.1127/16-17 EXHIBIT P6-TRUE COPY OF THE APPEAL DATED 24.06.2020 FILED AGAINST THE ORDER IN APPEAL NO.ITA NO.267/18-19 EXHIBIT P7-TRUE COPY OF THE APPEAL DATED 24.06.2020 FILED AGAINST THE ORDER IN APPEAL NO.ITA NO.242/19-20 EXHIBIT P8-TRUE COPY OF THE ACKNOWLEDGMENT EVIDENCING THE RECEIPT OF THE APPEALS ON 23.06.2020 EXHIBIT P9-TRUE COPY OF THE STAY PETITION DATED 10.07.2020 FILED IN INCOME TAX ACT/265/COCH/2020 EXHIBIT P10-TRUE COPY OF THE STAY PETITION DATED 10.07.2020 FILED IN INCOME TAX ACT/266/COCH/2020 EXHIBIT P11-TRUE COPY OF THE STAY PETITION DATED 10.07.2020 FILED IN INCOME TAX ACT/267/COCH/2020 EXHIBIT P12-TRUE COPY OF THE STAY PETITION DATED 10.07.2020 FILED IN INCOME TAX ACT/268/COCH/2020 EXHIBIT P13-TRUE COPY OF THE STAY PETITION DATED 10.07.2020 FILED IN INCOME TAX ACT/269/COCH/2020 EXHIBIT P14-TRUE COPY OF THE JUDGMENT DATED 23.03.2020 IN W.P(C) NO.9159/2020 EXHIBIT P15-TRUE COPY OF THE JUDGMENT OF THE DIVISION BENCH IN W.A NO.1536/2019 AND CONNECTED CASES DATED 01.07.2019

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