THE AYIROOR VILLAGE SERVICE CO-OPERATIVE BANK LTD.NO.4267 vs. THE INCOME TAX OFFICER

PDF · subscribers
WP(C)/31447/2019HC KeralaKLHC01082266201921 November 2019Author: 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 Income Tax Appellate Tribunal (3rd respondent) to consider and pass orders on the petitioner's appeal (Ext.P4) within an outer time limit of six months. Recovery steps for the amounts confirmed by the rectified order (Ext.P3) are to be kept in abeyance until orders are passed by the Tribunal and communicated to the petitioner. The petitioner is directed to furnish a copy of the writ petition and the judgment to the Tribunal for further action. The specific finding on the disallowance of deduction under Section 80P was not decided by the High Court, as the direction was for the Tribunal to adjudicate the appeal. The ratio is that where an appeal and stay petition are pending before the Tribunal, and recovery steps are being initiated, the High Court may direct the Tribunal to expedite the disposal of the appeal and stay recovery pending such disposal.

What were the facts?

The petitioner, Ayiroor Village Service Co-operative Bank Ltd. No. 4267, is challenging a rectified order (Ext.P3) issued under the Income Tax Act. The petitioner has filed an appeal (Ext.P4) and a stay petition (Ext.P5) before the Income Tax Appellate Tribunal (3rd respondent). The petitioner contends that recovery steps are being initiated by the respondents even before the stay petition is considered. The core issue in the appeal relates to the disallowance of deduction claimed under Section 80P of the Income Tax Act. The petitioner seeks a direction for the Tribunal to consider and pass orders on the appeal and to stay recovery proceedings pending the appeal's disposal.

What were the issues?

1. Whether the Income Tax Appellate Tribunal should be directed to consider and pass orders on the appeal filed by the petitioner against the rectified order, and to stay recovery proceedings pending the appeal's disposal? Assessee's Contention: The petitioner argues that recovery steps are being taken by the respondents prematurely, even before the stay petition is considered by the Tribunal. They rely on similar matters where the High Court has directed the Appellate Authority to consider appeals and stay recovery. The issue in the appeal pertains to the disallowance of deduction under Section 80P of the Income Tax Act. Revenue's Contention: The judgment does not record any specific arguments made by 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 THURSDAY, THE 21ST DAY OF NOVEMBER 2019/30TH KARTHIKA, 1941 W.P(C).No.31447 OF 2019(E) PETITIONER: THE AYIROOR VILLAGE SERVICE CO-OPERATIVE BANK LTD.NO.4267 REPRESENTED BY ITS SECRETARY, ELAKAMON P.O. VARKALA, THIRUVANANTHAPURAM DISTRICT 695 611. BY ADVS.SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENTS: 1 THE INCOME TAX OFFICER WARD-2(5), OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, KAWDIAR P.O. THIRUVANANTHAPURAM 695 003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM-PIN-695 003. 3 THE REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, KENDRIYA BHAVAN, BLOCK NO.C1 & C2, 1ST FLOOR, KAKKANAD, COCHIN-682 030. BY SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.11.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No.31447/2019 : 2 :

J U D G M E N T Against Ext.P3 rectified order under the Income Tax Act, the petitioner has preferred Ext.P4 appeal together with Ext.P5 stay petition before the 3rd respondent. It is the case of the petitioner that even prior to considering the stay petition, recovery steps are taken by the respondents against the petitioner for recovery of the amounts confirmed by Ext.P3 rectified order. It is stated by the learned counsel for the petitioner that the issue involved in the appeal pertains to dis-allowance of deduction claimed under Section 80P of the Income Tax Act.

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 W.P.(C).No.31447/2019 : 3 : 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.P4 appeal within an outer time limit of six months. Recovery steps for recovery of amounts confirmed against the petitioner by Ext.P3 rectified 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 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 prp/21/11/19

W.P.(C).No.31447/2019 : 4 :

Appendix — schedule of exhibits
APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2015-2016 DATED 23.11.2017. EXHIBIT P2 A TRUE COPY OF THE ORDER DATED 10.12.2018 IN ITS NO. 103/EF/TVM/CIT(A)/TVM/2017-18 OF THE 2ND RESPONDENT. EXHIBIT P3 A TRUE COPY OF THE ORDER DATED 03.09.2019 IN ITS NO. 103/EF/TVM/CIT(A)/TVM /2017-18 ISSUED BY THE 2ND RESPONDENT UNDER SECTION 154 OF THE INCOME TAX ACT. EXHIBIT P4 A TRUE COPY OF THE APPEAL MEMORANDUM ALONG WITH AFFIDAVIT DATED 24.10.2019 AND CHELAN. EXHIBIT P5 RESPONDENTS EXHIBITS: A TRUE COPY OF THE STAY PETITION FILED ALONG WITH EXT. P4 APPEAL DATED 24.10.2019. NIL. //TRUE COPY// P.S. TO JUDGE

More judgments on Section 80P

All 5,069 judgments and leading authorities on Section 80P →

Latest GST High Court judgments

Search GST case law →