VARKALA SERVICE CO-OPERATIVE BANK LTD.NO.161, vs. THE INCOME TAX OFFICER

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WP(C)/32075/2019HC KeralaKLHC01083851201927 November 2019Author: HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala, considering the facts and circumstances and submissions, disposed of the writ petition. It directed 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. Furthermore, the Court ordered that recovery steps for the amounts confirmed against the petitioner by the rectified order (Ext.P3) shall be kept in abeyance until the Tribunal passes its orders and communicates them to the petitioner. The petitioner is directed to furnish a copy of the writ petition and the judgment to the Tribunal. The High Court did not decide the merits of the disallowance of deduction under Section 80P, as the primary focus was on procedural directions.

What were the facts?

The petitioner, Varkala Service Co-operative Bank Ltd., has filed a writ petition 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 by the petitioner under Section 80P of the Income Tax Act. The petitioner seeks a direction for the expeditious disposal of their appeal and a stay on recovery proceedings.

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 concerning the disallowance of deduction under Section 80P of the Income Tax Act? 2. Whether recovery steps for the amounts confirmed by the rectified order should be stayed pending the disposal of the appeal? Assessee's Contentions: The petitioner argues that recovery steps are being pursued despite the pendency of their appeal and stay petition before the Tribunal. They rely on the fact that the appeal concerns the disallowance of deduction under Section 80P. Revenue's Contentions: The judgment does not record specific contentions from the revenue's side. However, the revenue is represented by the Income Tax Officer and the Commissioner of Income Tax (Appeals).

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 27TH DAY OF NOVEMBER 2019/6TH AGRAHAYANA, 1941 W.P(C).No.32075 OF 2019(H) PETITIONER: VARKALA SERVICE CO-OPERATIVE BANK LTD.NO.161, REPRESENTED BY ITS SECRETARY-IN -CHARGE,VARKALA P.O., CHIRAYINKEEZHU, THIRUVANANTHAPURAM DISTRICT-695 141 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,PIN-695 003 2 THE COMMISSIONER OF INCOME TAX(APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTPAPURAM, PIN-695 003 3 THE REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, KENDRIYA BHAVAN, BLOCK NO.C1 AND C2, 1ST FLOOR, KAKKANAD, COCHIN-682 030 BY SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.11.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No.32075/2019 :: 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 W.P.(C).No.32075/2019 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.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/27/11/19

W.P.(C).No.32075/2019

Appendix — schedule of exhibits
APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2015-2016 DATED 07.12.2017 EXHIBIT P2 A TRUE COPY OF THE ORDER DATED 18.12.2018 IN ITA NO.175/EF/TVM/CIT(A)/TVM/2017-18 OF THE 2ND RESPONDENT EXHIBIT P3 A TRUE COPY OF THE ORDER DATED 03.09.2019 IN ITA NO.175/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 HE APPEAL MEMORANDUM ALONG WITH AFFIDAVIT DATED 11.1.12019 AND CHELAN EXHIBIT P5 RESPONDENTS EXHIBITS: A TRUE COPY OF THE STAY PETITION FILED ALONG WITH EXT-P4 APPEAL DATED 11.11.2019. NIL. //TRUE COPY// P.S. TO JUDGE

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