NAVAIKULAM FARMERS WELFARE CO-OPERATIVE SOCIETY LTD. NO.1731, vs. THE CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE,

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WP(C)/29683/2019HC KeralaKLHC01077108201905 November 2019Author: HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala directed the 4th respondent, the Commissioner of Income Tax (Appeals), to consider and pass orders on the petitioner's appeal (Ext.P3) within an outer time limit of six months from the date of receipt of a copy of the judgment. The Court also ordered that recovery steps pursuant to the demand notice (Ext.P4) shall be kept in abeyance until such time as orders are passed by the 4th respondent and communicated to the petitioner. The petitioner was directed to produce a copy of the writ petition and the judgment before the 4th respondent for further action. The issue of the allowance of deduction under Section 80P was not decided on merits by the High Court, as the matter was remanded for disposal by the appellate authority.

What were the facts?

The petitioner, Navaikulam Farmers Welfare Co-operative Society Ltd., filed a writ petition before the High Court of Kerala challenging an assessment order (Ext.P2) under the Income Tax Act, 1961. The society had preferred an appeal (Ext.P3) along with a stay petition (Ext.P5) before the Commissioner of Income Tax (Appeals), the 4th respondent. A demand notice (Ext.P4) was also issued. The core issue in the appeal pertains to the allowance of deduction under Section 80P of the Income Tax Act. The writ petition sought directions regarding the disposal of the appeal and the recovery proceedings.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the appeal filed by the petitioner within a stipulated time frame, and if recovery steps should be kept in abeyance pending the disposal of the appeal. Assessee's Contention: The petitioner, Navaikulam Farmers Welfare Co-operative Society Ltd., argued that an appeal and stay petition had been filed against the assessment order concerning the allowance of deduction under Section 80P. They sought a direction for the expeditious disposal of the appeal and a stay on recovery proceedings. Revenue's Contention: The judgment does not record any specific contentions made by the respondents (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 TUESDAY, THE 05TH DAY OF NOVEMBER 2019 / 14TH KARTHIKA, 1941 WP(C).No.29683 OF 2019(I) PETITIONER: NAVAIKULAM FARMERS WELFARE CO-OPERATIVE SOCIETY LTD. NO.1731, KIZHAKKE NADA, NAVAIKULAM, THIRUVANANTHAPURAM-695603, REPRESENTED BY ITS SECRETARY JAYASREE B.S. BY ADVS. DR.K.P.PRADEEP SRI.SANAND RAMAKRISHNAN SMT.NEENA ARIMBOOR 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 DEPUTY COMMISSIONER OF INCOME TAX, CENTRALIZED PROCESSING CENTRE, INCOME TAX BENGALURU, KARNATAKA-560500. 3 INCOME TAX OFFICER, WARD 2(5)-RANGE 2, AYAKAR BHAVAN, INCOME TAX, KOWADIAR, THIRUVANANTHAPURAM-695003. WPC 29683/19 -:2:- 4 COMMISSIONER OF INCOME TAX (APPEALS), THIRUVANANTHAPURAM, AYAKAR BHAVAN, INCOME TAX OFFICE, KOWADIAR, THIRUVANANTHAPURAM-695003. SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.11.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC 29683/19 -:3:-

JUDGMENT

Against Ext.P2 assessment order under the Income Tax Act, 1961, the petitioner has preferred Ext.P3 appeal together with Ext.P5 stay petition before the 4th respondent. Ext.P4 is the demand notice. It is stated that the issue involved in the appeal is the allowance of deduction under Section 80P of the Income Tax Act.

2.

I have heard the learned counsel appearing for the petitioner and also the learned Government Pleader 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 stay granted pending disposal of the appeal in similar cases, I direct the 4th respondent to consider and pass orders on Ext.P3 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 pursuant to Ext.P4 demand notice shall be kept in abeyance till such time as orders are passed by the 4th 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 4 th respondent, for further action. This writ petition is disposed as above. A.K.JAYASANKARAN NAMBIAR JUDGE vps

WPC 29683/19

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE RETURN OF INCOME DATED 25.02.2019 FOR THE ASSESSMENT YEAR 2018-19 IN PAN AADAN0420F. EXHIBIT P2 TRUE COPY OF THE INTIMATION AND ASSESSMENT ORDER ISSUED UNDER SECTION 143(1) OF THE INCOME TAX ACT, 1961 WITH NO AADAN0420F/2018-19 DATED 31.05.2019 ISSUED FOR THE YEAR 2016-17 BY THE 2ND RESPONDENT. EXHIBIT P3 TRUE COPY OF THE APPEAL DATED 12.07.2019 FILED FOR THE YEAR 2018-19 BEFORE THE 4TH RESPONDENT. EXHIBIT P4 TRUE COPY OF THE DEMAND NOTICE NO.PAN AADAN0420F/2018-19 DATED 24.10.2019 FOR THE YEAR 2018-19 ISSUED BY THE 3RD RESPONDENT. EXHIBIT P5 TRUE COPY OF THE STAY APPLICATION FILED ON 31.10.2019 BEFORE THE 4TH RESPONDENT IN EXT.P3 APPEAL. RESPONDENT'S/S' EXHIBITS: NIL

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