KERALA KERA KARSHAKA SAHAKARANA FEDERATION LIMITED vs. ASSESSMENT UNIT

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WP(C)/17320/2024HC KeralaKLHC01105206202427 May 2024Bench: HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the Commissioner of Income Tax (Appeals) to consider and dispose of the statutory appeal filed by the petitioner expeditiously, preferably within three months from the date of receipt of a copy of the judgment. Until an order is passed in the appeal, no recovery proceedings shall be initiated against the petitioner pursuant to the assessment order. The Court did not decide on the merits of the petitioner's claim for exemption under Section 80P, as the appeal itself was pending. The ratio decidendi is that statutory appeals should be considered promptly by appellate authorities, and interim protection can be granted pending disposal.

What were the facts?

The petitioner, Kerala Kera Karshaka Sahakarana Federation Limited, is a Co-operative Society registered under the Kerala State Co-operative Societies Act, 1969. It claims entitlement to exemption/deduction under Section 80P of the Income Tax Act. The assessment order for the assessment year 2022-23 was passed by the Assessment Unit, National Faceless Assessment Centre, New Delhi, under Section 143(3) read with Section 144B of the Income Tax Act. The petitioner filed an appeal and a stay petition before the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, New Delhi. The present writ petition was filed with the limited prayer for the consideration of the appeal by the appellate authority.

What were the issues?

1. Whether the petitioner is entitled to exemption/deduction under Section 80P of the Income Tax Act for the assessment year 2022-23. The petitioner contended that it is a co-operative society and is entitled to the benefits of Section 80P. The revenue's contentions are not recorded in the judgment as the matter was disposed of on a procedural direction. 2. Whether the appellate authority should consider the statutory appeal filed by the petitioner. The petitioner argued that its appeal should be considered expeditiously. The revenue did not present any arguments against this procedural request.

Which sections of the Income-tax Act were involved?

Section 80P,Section 143(3),Section 144B

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN MONDAY, THE 27TH DAY OF MAY 2024 / 6TH JYAISHTA, 1946 WP(C) NO. 17320 OF 2024 PETITIONER/S: KERALA KERA KARSHAKA SAHAKARANA FEDERATION LIMITED KERALA TOWER, KERA FED, KERA WATERS WORKS COMPOUND, VELLAYAMBALAM, THIRUVANANTHAPURAM, KERALA, REPRESENTED BY MANAGING DIRECTOR, SAJU K SURENDRAN, PIN - 695033 BY ADVS. ADITYA UNNIKRISHNAN PRIYADARSINI S. ANIL D. NAIR (SR.) RESPONDENTS: 1 ASSESSMENT UNIT INCOME TAX DEPARTMENT NATIONAL FACELESS ASSESSMENT CENTRE NEW DELHI, PIN - 110001 2 COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE NEW DELHI, PIN – 110001 3 THE DEPUTY / ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE1(1) AYAKKAR BHAVAN, KOWDIAR, THIRUVANATHAPURAM, PIN – 695003 BY ADVS. CHRISTOPHER ABRAHAM P.R.AJITH KUMAR(K/000708/1998) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.05.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

2 WPC 17320/2024 JUDGMENT The petitioner is a Co-operative Society registered under Kerala State Co-operative Societies Act, 1969. According to the petitioner, the petitioner is entitled for exemption/deduction under the Income Tax Act as per Section 80 P of the Act. Ext.P1 is the assessment order for the year 2022-23 passed by the 1st respondent under Section 143(3) r/w Section 144 B of the Income Tax Act. Against Ext.P1, the petitioner has filed Ext. P2 appeal and Ext.P3 stay petition. The limited prayer of the petitioner is for a consideration of Ext. P2 appeal by the 2nd respondent. 2. Heard the learned counsel for the petitioner and the learned Standing Counsel for the Income Tax Department.

3 WPC 17320/2024 3. Since Ext P2 is a statutory appeal, there will be a direction to the 2nd respondent to consider and dispose of Ext.P2 appeal as expeditiously as possible, at any rate, within a period of three months from the date of receipt of a copy of this judgment. Till such time orders are passed in the appeal, there shall not be any recovery proceedings against the petitioner pursuant to Ext.P1. The writ petition is disposed of with the above direction. Sd/- MURALI PURUSHOTHAMAN JUDGE al/-.

4 WPC 17320/2024 APPENDIX OF WP(C) 17320/2024 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ORDER DATED 29.03.2024 ALONG WITH DEMAND NOTICE ISSUED BY THE 1 ST RESPONDENT Exhibit P2 TRUE COPY OF THE APPEAL IN FORM 35 DATED 23.04.2024 FILED BEFORE THE 2 ND RESPONDENT Exhibit P3 TRUE COPY OF THE STAY PETITION FILED BEFORE THE 2 ND RESPONDENT,DATED 20.4.2024

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