VENJARAMOOD SERVICE CO-OPERATIVE BANK LTD.NO.2419 vs. THE INCOME TAX OFFICER,

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WP(C)/32486/2019HC KeralaKLHC01084828201929 November 2019Author: HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, taking note of the petitioner's submission and finding that similar matters had resulted in a stay of recovery pending the appeal's disposal by the first appellate authority, disposed of the writ petition. The Court directed the second respondent (Commissioner of Income Tax (Appeals)) to consider and pass orders on the petitioner's appeal (Ext.P10) within an outer time limit of six months from the date of receiving a copy of the judgment, after hearing the petitioner. Recovery steps, including further proceedings pursuant to the garnishee notice (Ext.P9), were ordered to be kept in abeyance until the second respondent passes orders and communicates them to the petitioner. The Court also clarified that the petitioner would be permitted to operate its bank account mentioned in Ext.P9 during the period the stay is in operation. No specific finding was made on the merits of the Section 80P deduction.

What were the facts?

The petitioner, Venjaramood Service Co-operative Bank Ltd., has filed a writ petition challenging a revised assessment order. The petitioner has preferred an appeal (Ext.P10) and a stay petition (Ext.P11) before the Commissioner of Income Tax (Appeals), the second respondent. A garnishee notice (Ext.P9) was also issued under the Income Tax Act. The core issue in the appeal pertains to the deduction under Section 80P of the Income Tax Act. The petitioner's counsel submitted that in similar cases, the High Court had directed the appellate authority to decide the appeal and kept 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 concerning the deduction under Section 80P of the Income Tax Act, and keep recovery proceedings in abeyance pending the appeal's disposal. Assessee's contention: The petitioner argued that the issue involved is the deduction under Section 80P of the Income Tax Act. They relied on previous High Court orders in similar cases where directions were given to the appellate authority to decide the appeal and to keep recovery proceedings in abeyance. The petitioner sought a similar relief. Revenue's contention: The judgment does not record any 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 FRIDAY, THE 29TH DAY OF NOVEMBER 2019 / 8TH AGRAHAYANA, 1941 WP(C).No.32486 OF 2019(I) PETITIONER/S: VENJARAMOOD SERVICE CO-OPERATIVE BANK LTD.NO.2419 REPRESENTED BY ITS SECRETARY, VENJARAMOODU P.O.THIRUVANANTHAPURAM DISTRICT-695 607. BY ADVS. SRI.T.R.HARIKUMAR SRI.ADITHYA RAJEEV RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD-2(3), OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX, RANGE-2, AAYAKAR BHAVAN, KOWDIAR P.O.THIRUVANANTHAPURAM DISTRICT-695 003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM-695 003. 3 THE THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK LTD, REPRESENTED BY ITS GENERAL MANAGER, HEAD OFFICE, EAST FORT, THIRUVANANTHAPURAM-695 023. OTHER PRESENT: SC CHRITOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.11.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C).32486/19 2

JUDGMENT Against Ext.P2 revised assessment order under the Income Tax Act the petitioner has preferred Ext.P10 appeal and Ext.P11 stay petition before the 2nd respondent. Ext.P9 is the garnishee notice issued under the Income Tax Act. It is the submission of the learned counsel for the petitioner that the issue involved in the appeal is the deduction under Section 80P of the Income Tax Act and in similar cases this Court had directed the appellate authority to consider and pass orders in the appeal and kept in abeyance the recovery proceedings for recovery of the amount confirmed against the assessee by the assessment order. Taking note of the said submission and finding that in similar matters this Court has granted a stay of recovery pending disposal of the appeal by the first appellate authority, this writ petition is disposed by directing the 2nd respondent to consider and pass orders on Ext.P10 appeal within an outer time limit of six months from the date of receipt of a copy of this judgment, after hearing the petitioner. Recovery steps including further proceedings pursuant to Ext.P9 for recovery of the amounts confirmed against the petitioner by the assessment order shall be kept in abeyance till such time as orders are passed by the 2nd respondent as directed and the orders communicated to the petitioner. It is made clear that during the period when the stay granted by this Court is in operation the petitioner will be permitted to operate the bank account mentioned in Ext.P9. A.K.JAYASANKARAN NAMBIAR

JUDGE okb //// P.S. to Judge

W.P(C).32486/19 3

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE JUDGMENT DATED 7.8.2018 IN WA NO 1405 OF 2018 EXHIBIT P2 A TRUE COPY OF THE RECTIFICATION ORDER UNDER SECTION 154 OF THE INCOME TAX ACT ISSUED BY THE 1ST RESPONDENT DATED 8.3.2019 EXHIBIT P3 A TRUE COPY OF THE NOTICE DATED 25.4.2019 ISSUED BY THE 1ST RESPONDENT EXHIBIT P4 A TRUE COPY OF THE ONLINE APPEAL DATED 5.5.2019 FILED BEFORE THE 2ND RESPONDENT EXHIBIT P5 A TRUE COPY OF THE STAY PETITION DATED 6.5.2019 FILED IN EXT-P4 APPEAL EXHIBIT P6 A TRUE COPY OF THE JUDGMENT DATED 14.5.2019 IN WPC NO 13547 OF 2019 EXHIBIT P7 A TRUE COPY OF THE COMMUNICATION DATED 8.11.2019 ISSUED BY THE 2ND RESPONDENT EXHIBIT P8 A TRUE COPY OF THE COMMUNICATION DATED 13.11.2019 ISSUED BY THE 2ND RESPONDENT EXHIBIT P9 A TRUE COPY OF THE COMMUNICATION ISSUED BY THE 1ST RESPONDENT DATED 19.11.2019 EXHIBIT P10 A TRUE COPY OF THE RECTIFIED APPEAL ALONG WITH GROUNDS OF APPEAL FILED BEFORE THE 2ND RESPONDENT DATED 18.11.20019 EXHIBIT P11 A TRUE COPY OF THE STAY PETITION FILED IN EXT-P10 APPEAL DATED 20.11.2019

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