MARAYAMUTTOM SERVICE CO-OPERATIVE BANK LTD NO. 984 vs. THE CENTRAL BOARD OF DIRECT TAXES,

PDF · subscribers
WP(C)/32875/2019HC KeralaKLHC01086041201904 December 2019Author: HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR6 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala disposed of the writ petition by directing the 3rd respondent (Commissioner of Income Tax (Appeals)) to consider and pass orders on the petitioner's appeals (Ext.P2 series) within six months from the date of receiving a copy of the judgment, after hearing the petitioner. Crucially, the Court ordered that recovery steps pursuant to the demand notices (Ext.P4 series) for the amounts confirmed against the petitioner shall be kept in abeyance until such time as the 3rd respondent passes orders on the appeals and communicates them to the petitioner. The petitioner was directed to furnish a copy of the writ petition and the judgment to the 3rd respondent. The issue regarding the disallowance of deduction under Section 80P was not decided on merits by the High Court, but the recovery was stayed pending the appellate authority's decision.

What were the facts?

The petitioner, Marayamuttom Service Co-operative Bank Ltd., filed appeals and stay petitions against assessment orders (Ext.P1 series) under the Income Tax Act before the Commissioner of Income Tax (Appeals) (3rd respondent). The petitioner contends that recovery steps are being initiated for amounts confirmed by the assessment orders, even before the stay petitions are considered. The core issue in the appeals relates to the disallowance of deduction claimed under Section 80P of the Income Tax Act. The petitioner is represented by its Part Time Administrator. The respondents include the Central Board of Direct Taxes, the Income Tax Officer, the Commissioner of Income Tax (Appeals), and various banks.

What were the issues?

1. Whether the recovery steps initiated by the revenue authorities are premature, given that the appeals and stay petitions are pending before the appellate authority? (Question of mixed law and fact, concerning the procedural fairness and the Income Tax Act). Assessee's Contention: The petitioner argued that recovery steps are being taken for amounts confirmed by the assessment orders, despite the pendency of appeals and stay petitions before the Commissioner of Income Tax (Appeals). The petitioner sought a stay on recovery proceedings pending the disposal of their appeals. Revenue's Contention: The judgment does not record any specific contentions made by the revenue authorities regarding the premature recovery steps or the merits of the appeal. The court heard the learned Standing Counsel appearing for the respondents.

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 04TH DAY OF DECEMBER 2019 / 13TH AGRAHAYANA, 1941 WP(C).No.32875 OF 2019(H) PETITIONER: MARAYAMUTTOM SERVICE CO-OPERATIVE BANK LTD NO. 984 MARAYAMUTTOM.P.O., NEYYATTINKARA, THIRUVANANTHAPURAM- 695131, REPRESENTED BY ITS PART TIME ADMINISTRATOR, SHAMNAD.A.B. BY ADVS. DR.K.P.PRADEEP SRI.SANAND RAMAKRISHNAN SRI.T.T.BIJU SMT.T.THASMI SMT.NANDINI R.S. RESPONDENTS: 1 THE CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110001, REPRESENTED BY ITS CHAIRMAN. 2 INCOME TAX OFFICER, WARD 2(2), THIRUVANANTHAPURAM, DEPARTMENT OF INCOME TAX, AAYAKKAR BHAVAN, KOWADIAR, THIRUVANANTHAPURAM- 695003. 3 COMMISSIONER OF INCOME TAX (APPEALS), THIRUVANANTHAPURAM, DEPARTMENT OF INCOME TAX, AAYAKKAR BHAVAN, KOWADIAR, THIRUVANANTHAPURAM-695003. 4 BRANCH MANAGER, INDIAN OVERSEAS BANK, PERUMKADAVILA BRANCH, AMARAVILA- PERUMKADAVILA ROAD, PERUMKADAVILA, THIRUVANANTHAPURAM- 695124. 5 BRANCH MANAGER, STATE BANK OF INDIA, PERUMKADAVILA BRANCH, MARAYAMUTTOM, AMARAVILA-OTTASEKHARAMANGALAM ROAD, THIRUVANANTHAPURM-695124. 6 THE THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK, HEAD OFFICE, THIRUVANANTHAPURAM, WP(C).No.32875 OF 2019(H) 2 EAST FORT.P.O., THIRUVANANTHAPURAM-695023, REPRESENTED BY ITS GENERAL MANAGER. BY ADV.SRI.CHRISTOPHER ABRAHAM,SC BY ADV.SRI.A.KUMAR, R6 BY ADV.SRI.THOMAS ABRAHAM R4 BY ADV.SRI.SUNIL SHANKER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.12.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.32875 OF 2019(H) 3

JUDGMENT Against Ext.P1 series of assessment orders under the Income Tax Act, the petitioner has preferred Ext.P2 series of appeals together with Ext.P3 series of stay petitions before the 3rd respondent. Ext.P4 series are the demand notices. 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.P1 series of assessment orders. 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 recovery of disputed amounts pending disposal of the appeal, this Writ petition is WP(C).No.32875 OF 2019(H) 4 disposed directing the 3rd respondent to consider and pass orders on Ext.P2 series of appeals 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 pursuant to Ext.P4 series of demand notices for recovery of amounts confirmed against the petitioner 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 along with a copy of this judgment, before the 3 rd respondent, for further action.

A.K.JAYASANKARAN NAMBIAR

JUDGE mns

WP(C).No.32875 OF 2019(H) 5

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER NO.AACAT5397C DATED 19.12.2017 ISSUED FOR THE YEAR 2010-11 BY THE 2ND RESPONDENT. EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER NO.AACAT5397C DATED 19.12.2017 ISSUED FOR THE YEAR 2011-12 BY THE 2ND RESPONDENT. EXHIBIT P1 B TRUE COPY OF THE ASSESSMENT ORDER NO.AACAT5397C DATED 19.12.2017 ISSUED FOR THE YEAR 2012-13 BY THE 2ND RESPONDENT. EXHIBIT P1 C TRUE COPY OF THE ASSESSMENT ORDER NO.AACAT5397C DATED 26.12.2018 ISSUED FOR THE YEAR 2013-14 BY THE 2ND RESPONDENT. EXHIBIT P2 TRUE COPY OF THE APPEAL DATED 21.11.2019 FILED BEFORE THE 3RD RESPONDENT FOR THE YEAR 2010-11 AGAINST EXT.P1 ASSESSMENT ORDER. EXHIBIT P2 A TRUE COPY OF THE APPEAL DATED 21.11.2019 FILED BEFORE THE 3RD RESPONDENT FOR THE YEAR 2011-12 AGAINST EXT.P1(A) ASSESSMENT ORDER. EXHIBIT P2 B TRUE COPY OF THE APPEAL DATED 23.11.2019 FILED BEFORE THE 3RD RESPONDENT FOR THE YEAR 2012-13 AGAINST EXT.P1(B) ASSESSMENT ORDER. EXHIBIT P2 C TRUE COPY OF THE APPEAL DATED 19.11.2019 FILED BEFORE THE 3RD RESPONDENT FOR THE YEAR 2013-14 AGAINST EXT.P1(C) ASSESSMENT ORDER. EXHIBIT P3 TRUE COPY OF THE STAY APPLICATION DATED 26.11.2019 IN EXT.P2 APPEAL FILED BEFORE THE 3RD RESPONDENT BY THE PETITIONER. EXHIBIT P3 A TRUE COPY OF THE STAY APPLICATION DATED 26.11.2019 IN EXT.P2(A) APPEAL FILED BEFORE THE 3RD RESPONDENT BY THE PETITIONER. EXHIBIT P3 B TRUE COPY OF THE STAY APPLICATION DATED 26.11.2019 IN EXT.P2(B) APPEAL FILED BEFORE THE 3RD RESPONDENT BY THE PETITIONER. EXHIBIT P3 C TRUE COPY OF THE STAY APPLICATION DATED WP(C).No.32875 OF 2019(H) 6 25.11.2019 IN EXT.P2(C) APPEAL FILED BEFORE THE 3RD RESPONDENT BY THE PETITIONER. EXHIBIT P4 TRUE COPY OF THE NOTICE NO.ITBA/COM/F/17/2019-20/1020780431(1) FOR THE AY 2010-11 DATED 20.11.2019 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P4 A TRUE COPY OF THE NOTICE NO.ITBA/COM/F/17/2019-20/1020781091(1) FOR THE AY 2011-12 DATED 20.11.2019 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P4 B TRUE COPY OF THE NOTICE NO.ITBA/COM/F/17/2019-20/1020781687(1) FOR THE AY 2012-13 DATED 20.11.2019 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P4 C TRUE COPY OF THE NOTICE NO.ITBA/COM/F/17/2019-20/1020782368(1) FOR THE AY 2013-14 DATED 20.11.2019 ISSUED BY THE 2ND RESPONDENT. RESPONDENTS EXHIBITS:NIL //TRUE COPY// P.A TO JUDGE

More judgments on Section 80P

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

Recent GST High Court judgments

Search GST case law →