PRIMARY AGRICULTURAL CREDIT CO OPERATIVE SOCIETY vs. COMMISSIONER OF INCOME TAX (APPEALS)
What did the High Court hold?
The High Court directed the Commissioner of Income Tax (Appeals) (CIT(A)) to dispose of the appeals filed by the petitioners in accordance with law and in an expeditious manner, preferably within a period of eight weeks from the date of receipt of a certified copy of the order. The Court further directed that the Assessing Authority shall not enforce the demand notices (Annexure-F) or freeze the accounts until the disposal of the appeals by the CIT(A). The enforcement of the demand notices will be subject to the final decision taken by the CIT(A). The Court considered the totality of the circumstances and found that these directions would serve the ends of justice. No specific issue was left undecided; the court addressed the procedural aspect of appeal disposal and the interim relief regarding demand notices.
What were the facts?
The petitioners are primary agricultural credit co-operative societies registered under the Karnataka Co-operative Societies Act, 1959. They filed returns of income claiming deduction under Section 80-P(2)(a)(i) of the Income Tax Act, 1961. Their assessments were concluded under Section 143(3) of the Act, disallowing the claimed deductions. Aggrieved, the petitioners filed appeals under Section 246-A before the Commissioner of Income Tax (Appeals) (CIT(A)). Pending these appeals, the petitioners sought a stay on recovery proceedings. The present writ petitions were filed seeking to quash demand notices issued by the Income Tax Officer (ITO) and for a direction to the CIT(A) to dispose of the pending appeals expeditiously. The demand notices were dated March 5, 6, and 8, 2019.
What were the issues?
1. Whether the petitioners are entitled to a direction for the expeditious disposal of their appeals pending before the Commissioner of Income Tax (Appeals)? (Question of law and fact, concerning the procedural efficiency of the appellate authority). 2. Whether the demand notices issued by the Income Tax Officer should be quashed or stayed pending the disposal of the appeals by the CIT(A)? (Question of law and fact, concerning the enforcement of demand notices during the pendency of appeals). Assessee's Contentions: The petitioners argued that their appeals before the CIT(A) were pending consideration, and they had also filed applications for stay of recovery proceedings. They sought a direction for the expeditious disposal of these appeals. They also sought to quash the demand notices issued by the ITO. Revenue's Contentions: The revenue, through its counsel, did not dispute the pendency of the appeals before the CIT(A) and the applications for stay.
Which sections of the Income-tax Act were involved?
Section 80-P(2)(a)(i),Section 143(3),Section 246-A
AI-generated summary — verify with the full judgment below
Heard together (6 matters)
Read from the judgment's own cause title. This page is filed under one of them.
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 4TH DAY OF APRIL, 2019
BEFORE
THE HON’BLE MRS.JUSTICE S.SUJATHA
W.P.No.12219/2019 c/w W.P.No.12222/2019, W.P.No.12223/2019 AND W.P.No.13634/2019 c/w W.P.No.12220/2019 & W.P.No.12221/2019 (T – IT)
IN W.P.No.12219/2019:
BETWEEN :
BELAPU VYAVASAYA SEVA SAHAKARI SANGHA NIYAMITHA, 91-3, PANIYOOR, BELAPU POST, UDUPI-576140. REP BY ITS CEO Mrs. SULOCHANA
...PETITIONER
(BY SRI MAHESH R. UPPIN, ADV.)
AND :
COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, C.R. BUILDING, N.G. ROAD, ATTAVARA, MANGALORE-575 001
INCOME TAX OFFICER WARD 1 & TPS, AAYAKAR BHAVAN, ADI-UDUPI MALPE ROAD, UDUPI-576103
…RESPONDENTS
(BY SRI E.I.SANMATHI, ADV.)
- 2 -
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE DATED 08.03.2019 BEARING PAN NO.AACAB7010N ISSUED BY THE R-2 MARKED AS ANNEXURE-F.
IN W.P.No.12222/2019:
BETWEEN :
GANAPATHI CO-OPERATIVE AGRICULTURAL SOCIETY LTD., SAHAKARI SADANA, MAIN ROAD, KEMMANNU UDUPI - 576 115, REP. BY ITS C.E.O. ...PETITIONER
(BY SRI MAHESH R. UPPIN, ADV.)
AND :
COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, C.R. BUILDING, N.G. ROAD, ATTAVARA, MANGALORE-575 001
INCOME TAX OFFICER WARD-2, AAYAKAR BHAVAN, ADI-UDUPI MALPE ROAD, UDUPI-576103
…RESPONDENTS
(BY SRI E.I.SANMATHI, ADV.)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE DEMAND NOTICE DATED 06.03.2019 ISSUED BY THE R-2 MARKED AS ANNEXURE-F.
IN W.P.No.12223/2019:
BETWEEN :
KARAVALI CREDIT CO-OPERATIVE
- 3 - SOCIETY LTD., 2-14K1, ZEEZA KRIPA COMPLEX, KALLIANPURA, SANTHEKATTE, UDUPI-576105 REP. BY ITS GENERAL MANAGER, Mr. SRIDHAR SHETTY
...PETITIONER
(BY SRI MAHESH R. UPPIN, ADV.)
AND :
COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, C.R. BUILDING, N.G. ROAD, ATTAVARA, MANGALORE-575 001
INCOME TAX OFFICER WARD-2, AAYAKAR BHAVAN, ADI-UDUPI MALPE ROAD, UDUPI-576103
…RESPONDENTS
(BY SRI E.I.SANMATHI, ADV.)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE DEMAND NOTICE DATED 06.03.2019 ISSUED BY THE R-2 MARKED AS ANNEXURE-F.
IN W.P.No.13634/2019:
BETWEEN :
PRIMARY AGRICULTURAL CREDIT CO-OPERATIVE SOCIETY LTD., (FORMERLY : K C A BANK LTD.) KALASA, MOODIGERE TALUK CHIKKAMAGALURU DISTRICT-577 101 REP. BY ITS C E O SRI P.MAHABALESHWARA
...PETITIONER
(BY SRI MAHESH R. UPPIN, ADV.)
- 4 - AND :
COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN NO.21/16, RESIDENCY ROAD NAZARBAD, MYSURU-570 010
INCOME TAX OFFICER WARD -1, COURT ROAD CHIKKAMAGALURU-577 101
…RESPONDENTS
(BY SRI E.I.SANMATHI, ADV.)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE DEMAND NOTICE DATED 05.03.2019 ISSUED BY THE R-2 MARKED AS ANNEXURE-F BY ISSUING A WRIT IN THE NATURE OF CERTIORARY.
IN W.P.No.12220/2019:
BETWEEN :
KODAVOOR VYAVASAYA SEVA SAHAKARI SANGHA NIYAMITHA, 16-62, KODAVOOR, POST KODAVOOR, UDUPI-576106 REP. BY ITS C.E.O. SRI SUDHAKAR
...PETITIONER
(BY SRI MAHESH R. UPPIN, ADV.)
AND :
COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, C.R. BUILDING, N.G. ROAD, ATTAVARA, MANGALORE-575 001
INCOME TAX OFFICER WARD-1 & TPS, AAYAKAR BHAVAN,
- 5 - ADI-UDUPI MALPE ROAD, UDUPI-576103
…RESPONDENTS
(BY SRI E.I.SANMATHI, ADV.)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE DEMAND NOTICE DATED 08.03.2019 BEARING PAN NO.AACAK6235E ISSUED BY THE R-2 MARKED AS ANNEXURE-F.
IN W.P.No.12221/2019:
BETWEEN :
SHRI MALLIKARJUNA CREDIT CO-OPERATIVE SOCIETY LTD., SHIROOR, VANDARU POST, UDUPI-576223 REP. BY ITS CEO, Mr. NARASIMHA NAIK
...PETITIONER
(BY SRI MAHESH R. UPPIN, ADV.)
AND :
COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, C.R. BUILDING, N.G. ROAD, ATTAVARA, MANGALORE-575 001
INCOME TAX OFFICER WARD-2, AAYAKAR BHAVAN, ADI-UDUPI MALPE ROAD, UDUPI-576103
…RESPONDENTS
(BY SRI E.I.SANMATHI, ADV.)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE DATED 06.03.2019 ISSUED BY THE R-2 MARKED AS ANNEXURE-F BY ISSUING A WRIT IN THE NATURE OF CERTIORARY.
- 6 -
THESE PETITIONS COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:
O R D E R
Heard the learned counsel for the parties. The petitioners have challenged the demand notices dated 5.3.2019, 6.3.2019 and 8.3.2019 issued by the respondent No.2 inter alia seeking for a direction to the respondent No.1 to dispose of the appeals filed by the petitioners within a time frame.
The petitioners are primary agricultural credit co-operative societies registered under the Karnataka Co- operative Societies Act, 1959. The petitioners have filed their return of income and claimed deduction under Section 80-P(2)(a)(i) of the Income Tax Act, 1961. The assessments were concluded under Section 143(3) of the Act disallowing the amount of deduction as claimed by the petitioners. Being aggrieved by the same, the petitioners have preferred appeals under Section 246-A of the Act before the Commissioner of Income Tax (Appeals). In the
- 7 - said appeal proceedings, the petitioners have filed applications seeking stay of the recovery proceedings pending disposal of the appeals and are pending consideration.
The same is not disputed by the learned counsel appearing for the Revenue.
In the circumstances, the petitioners are claiming for a direction to the CIT (Appeals) respondent No.1 to dispose of the appeals in an expedite manner.
Considering the totality of the circumstances, this Court is of the considered opinion that it will be appropriate to direct the respondent No.1 to dispose of the appeals filed by the petitioners in accordance with law in an expedite manner preferably within a period of eight weeks from the date of receipt of certified copy of the order which would serve the ends of justice and hence is ordered accordingly.
- 8 - 6. The Assessing Authority shall not enforce the demand notices at Anenxure-F/freezing of accounts until the disposal of the appeals by the CIT (Appeals) and the same shall be subject to the result of the decision to be taken by the CIT (Appeals).
With the aforesaid observations and directions, these writ petitions stand disposed of.
Sd/- JUDGE
Dvr:
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