THE THADUKKASSERY SERVICE CO-OPERATIVE BANK LTD.NO.F 534, vs. THE INCOME TAX OFFICER,

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WP(C)/9799/2020HC KeralaKLHC01025071202008 May 2020Bench: HONOURABLE MR. JUSTICE GOPINATH P.11 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petitions by directing the Income Tax Appellate Tribunal (3rd respondent) to consider and pass orders on the stay petitions (Ext.P4) within a period of four months from the date of receipt of a copy of the judgment. The Court further directed that any steps initiated by the Income Tax Department for recovery of amounts due under the assessment orders shall be kept in abeyance until orders are passed on the stay petitions and communicated to the petitioners. The reasoning is based on the precedent set by a Division Bench of the same High Court in similar circumstances. The substantive issue of the claim for deduction under Section 80P was not decided on merits, as the petitions were disposed of with directions regarding the pending stay applications.

What were the facts?

These four writ petitions were filed by different Service Co-operative Banks (Kanjikode Service Co-operative Bank Ltd., Peruvemba Service Co-operative Bank Ltd., and Thadukkassery Service Co-operative Bank Ltd.) against the Income Tax Officer, the Commissioner of Income Tax (Appeals), and the Income Tax Appellate Tribunal. The assessment years involved are 2016-17 and 2017-18. The petitioners had claimed deductions under Section 80P of the Income Tax Act, which were rejected by the Assessing Officer and the Commissioner (Appeals). The petitioners filed appeals before the Income Tax Appellate Tribunal along with stay petitions. The present writ petitions sought a direction for the Tribunal to consider and pass orders on these stay petitions.

What were the issues?

1. Whether the High Court should direct the Income Tax Appellate Tribunal to consider and pass orders on pending stay petitions filed by the assessee co-operative banks, and if so, within what timeframe? The Assessee (petitioners) argued that they have filed appeals against the orders of the Commissioner (Appeals) which rejected their claims for deduction under Section 80P. They have also filed stay petitions before the Income Tax Appellate Tribunal. They relied on a Division Bench judgment of the same High Court which directed the Tribunal to consider stay petitions within four months and keep recovery proceedings in abeyance until orders are passed. The Revenue (respondents) did not record any specific arguments against the direction sought by the petitioners in the provided judgment excerpt.

Which sections of the Income-tax Act were involved?

Section 80P

AI-generated summary — verify with the full judgment below

Heard together (4 matters)

WP(C) NO. 9768 OF 2020
WP(C) NO. 9770 OF 2020
WP(C) NO. 9774 OF 2020
WP(C) NO. 9799 OF 2020

Read from the judgment's own cause title. This page is filed under one of them.

WPC.Nos.9768, 9770, 9774 and 9799 of 2020 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 8TH DAY OF MAY 2020 / 18TH VAISAKHA, 1942 WP(C) NO. 9768 OF 2020 PETITIONER/S: THE KANJIKODE SERVICE CO-OPERATIVE BANK LTD.NO.F1199 KANJIKODE P.O., KANJIKODE, PALAKKAD-678 621, REPRESENTED BY ITS SECRETARY, GURU RAJALINGAM. BY ADVS. HARISANKAR V. MENON SMT.MEERA V.MENON SMT.K.KRISHNA RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 1 AND TPS, AYAKAR BHAVAN, PALAKKAD-678 014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) THRISSUR-680 021. 3 THE INCOME TAX APPELLATE TRIBUNAL KENDRIYA BHAVAN, KAKKANADU, KOCHI-682 030, REPRESENTED BY ITS REGISTRAR. OTHER PRESENT: SRI. NAVANEETH - SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.05.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WPC.Nos.9768, 9770, 9774 and 9799 of 2020 2 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 8TH DAY OF MAY 2020 / 18TH VAISAKHA, 1942 WP(C) NO. 9770 OF 2020 PETITIONER/S: THE KANJIKODE SERVICE CO-OPERATIVE BANK LTD.NO.F 1199, KANJIKODE P.O., KANJIKODE, PALAKKAD - 678 621, REPRESENTED BY ITS SECRETARY, GURU RAJALINGAM. BY ADVS. HARISANKAR V. MENON SMT.MEERA V.MENON SMT.K.KRISHNA RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD 1 AND TPS, AYAKAR BHAVAN, PALAKKAD - 678 014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), THRISSUR - 680 021. 3 THE INCOME TAX APPELLATE TRIBUNAL, KENDRIYA BHAVAN, KAKKANADU, KOCHI - 682 030, REPRESENTED BY ITS REGISTRAR. OTHER PRESENT: SRI. NAVANEETH - SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.05.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WPC.Nos.9768, 9770, 9774 and 9799 of 2020 3 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 8TH DAY OF MAY 2020 / 18TH VAISAKHA, 1942 WP(C) NO. 9774 OF 2020 PETITIONER/S: THE PERUVEMBA SERVICE CO-OPERATIVE BANK LTD P-1648, PERUVEMBA P.O., PALAKKAD-678 531, REPRESENTED BY ITS SECRETARY, VIPINRAJ.U., AGED 26 S/O. MALLIKA BY ADVS. HARISANKAR V. MENON SMT.MEERA V.MENON SMT.K.KRISHNA RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 2, AYAKAR BHAVAN, PALAKKAD-678 014 2 THE COMMISSIONER OF INCOME TAX (APPEALS) THRISSUR-680 021 3 THE INCOME TAX APPELLATE TRIBUNAL, AYAKAR BHAVAN, KAKKANADU,KOCHI-682 030, REPRESENTED BY ITS REGISTRAR OTHER PRESENT: SRI CHRISTOPHER ABRAHAM,SRI NAVNEETH-SC (IT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.05.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WPC.Nos.9768, 9770, 9774 and 9799 of 2020 4 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 8TH DAY OF MAY 2020 / 18TH VAISAKHA, 1942 WP(C) NO. 9799 OF 2020 PETITIONER/S: THE THADUKKASSERY SERVICE CO-OPERATIVE BANK LTD.NO.F 534, KERALASSERY P.O., KONGAD, PALAKKAD - 678 641, REPRESENTED BY ITS SECRETARY, VIJAYAKUMARI M.P., AGED 51, D/O.NARAYANAN NAIR. BY ADVS. HARISANKAR V. MENON SMT.MEERA V.MENON SMT.K.KRISHNA RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD 2, AYAKAR BHAVAN, PALAKKAD - 678014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), THRISSUR - 680 021. 3 THE INCOME TAX APPELLATE TRIBUNAL, AYAKAR BHAVAN, KAKKANADU, KOCHI - 682 030, REPRESENTED BY ITS REGISTRAR. OTHER PRESENT: SRI NAVNEET-SC FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.05.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WPC.Nos.9768, 9770, 9774 and 9799 of 2020 5 JUDGMENT These writ petitions have been filed praying inter-alia for a direction to the 3rd respondent Tribunal to consider and pass orders on separate applications for stay (in all these writ petitions, the document marked as Ext.P4 is the application for stay). In W.P.(C). No.9768/20, the assessment year question is AY 2016-17, in W.P.(C). Nos. 9770/20 and 9774/20, the assessment year in question is 2017-18, in W.P.(C). No. 9799/20, the assessment year in question is 2016/17. 2. In all these cases, the petitioners claimed the benefit of Section 80P of the Income Tax Act. This claim was rejected by the Assessing Officer as well as by the Commissioner (Appeals). In all these cases, Ext.P1 is the order of assessment and Ext.P2 is the order of the Commissioner Income Tax (Appeals), rejecting the appeals filed by the petitioners. Challenging Ext.P2 appellate order. The petitioners have filed separate appeals marked

WPC.Nos.9768, 9770, 9774 and 9799 of 2020 6 as Ext.P3 in each of these writ petitions together with stay petitions, which are marked as Ext.P4 in each of these writ petitions. 3. The petitioners place reliance on the judgment of a Division Bench of this Court, which is produced as Ext.P5 along with W.P.(C). No.9768/20. The Division Bench has in similar circumstances, directed the Appellate Tribunal to consider and pass orders on the stay petitions within a period of four months from the date of receipt of a copy of the judgment and any proceedings initiated for recovery of amounts due from the petitioners were directed to kept in abeyance till orders are passed on the stay petitions and communicated to the petitioners. 4. In the light of the above, these writ petitions are disposed of directing the 3rd respondent, the Income Tax Appellate Tribunal, Kochi Bench, to consider and pass orders on the stay petitions marked as Ext.P4 in each of these writ petitions, within a period of four months from the date of receipt of a copy of this judgment. Till orders are so

WPC.Nos.9768, 9770, 9774 and 9799 of 2020 7 passed and communicated to the petitioners, steps (if any) initiated by the Income Tax Department for recovery of amounts due under the assessment orders, shall be kept in abeyance. With these observations and directions, these writ petitions are disposed of. Sd/- GOPINATH.P JUDGE Dxy

WPC.Nos.9768, 9770, 9774 and 9799 of 2020 8 APPENDIX OF WP(C) 9768/2020 PETITIONER EXHIBITS EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE IST RESPONDENT FOR THE YEAR 2016-17 DATED 27.12.2018. EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2016-17 DATED 3.3.2020. EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT 2016-17 DATED 19.3.2020. EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DATED 19.3.2020. EXHIBIT P5 COPY OF JUDGMENT IN WPC TMP NO.36/2020 OF THIS HON'BLE COURT.

WPC.Nos.9768, 9770, 9774 and 9799 of 2020 9 APPENDIX OF WP(C) 9770/2020 PETITIONER EXHIBITS EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2017-18. EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2017-18. EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT 2017-18. EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT. EXHIBIT P5 COPY OF JUDGMENT IN W.P.(C) TMP NO.36/2020 OF THIS HON'BLE COURT.

WPC.Nos.9768, 9770, 9774 and 9799 of 2020 10 APPENDIX OF WP(C) 9774/2020 PETITIONER EXHIBITS EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2017-18 EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2017-18 EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT -2017-18 EXHIBIT P4 COPY OF STAY PETITIONER FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT

WPC.Nos.9768, 9770, 9774 and 9799 of 2020 11 APPENDIX OF WP(C) 9799/2020 PETITIONER EXHIBITS EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2017-18. EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2017-18. EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT 2017-18. EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT.

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