Chenganoor Service Co-operative Bank Limited V. The Income Tax Officer Ward 4, Thiruvalla and The National Faceless Appeal Centre Income Tax Department, New Delhi and The Additional/Joint/Deputy/Assistant Commissioner of Income Tax/National E-Assessment Centre, New Delhi and The Commissioner of Income Tax (Appeals), Kottayam

WP(C)/30298/2023

AI Insights

The case involves Chengaroor Service Co-operative Bank Limited, which filed a writ petition under Article 226 of the Constitution of India, seeking a directive for the Commissioner of Income Tax (Appeals) to consider their appeals in a timely manner and to defer recovery proceedings until the appeals were resolved. The bank's claim for tax exemption under Section 80(P) of the Income Tax Act was rejected by the assessing authority, citing non-compliance with the Kerala Co-operative Societies Act. The court referenced a similar case (WP(C) No. 22847 of 2022) where it had directed an expedited appeal process and stayed tax recovery without the payment of 20%.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 684628 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 15-09-2023
• Assessment Year: misc
• Other Referred Cases: WP(C) No. 22847 of 2022
• Laws Referred To: Article 226 of the Constitution of India, Section 80(P) of the Income Tax Act, Kerala Co-operative Societies Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: NAVANEETH NATH
• Assessee Lawyers: JOSEPH GEORGE; REJIMON NAIR
• Keywords: Appeal; Co-operative Society; Income tax exemption; Recovery proceedings; Time Bound Consideration
• Section: 80(P)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH FRIDAY, THE 15TH DAY OF SEPTEMBER 2023 / 24TH BHADRA, 1945 WP(C) NO. 30298 OF 2023 PETITIONER: CHENGAROOR SERVICE CO-OPERATIVE BANK LIMITTED NO: A-149 AGED 51 YEARS CHENGAROOR P.O, MALLAPPALLY REPRESENTED BY ITS SECRETARY, CO-OPERATIVE BANK BUILDING, CHENGAROOR P.O, MALLAPPALLY, PATHANAMTHITTA DISTRICT, PIN – 689 594. BY ADVS. JOSEPH GEORGE P.A.REJIMON NIKITA NAIR C.S. RESPONDENTS: 1 THE INCOME TAX OFFICER WARD 4, THIRUVALLA, THIRUVALLA P.O, PATHANAMTHITTA DISTRICT, PIN – 689 101. 2 THE NATIONAL FACELESS APPEAL CENTRE INCOME TAX DEPARTMENT, NEW DELHI REPRESENTED BY PRINCIPAL CHIEF COMMISSIONER, INCOME TAX COMMISSIONARATE, C.R. BUILDING, IP ESTATE, NEW DELHI, PIN – 110 002. 3 THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT, COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER NATIONAL E-ASSESMENT CENTRE, NEW DELHI, PIN – 100 001. 4 THE COMMISSIONER OF INCOME TAX (APPEALS) OFFICE OF THE COMMISSIONER OF INCOME TAX, BAKER JUNCTION, KOTTAYAM, PIN – 686 001. OTHER PRESENT: NAVANEETH V. NATH, SC, REVENUE THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.09.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 30298 OF 2023 2 DINESH KUMAR SINGH, J. -------------------------------------------- WP(C) NO. 30298 OF 2023 -------------------------------------------- Dated this the 15th day of September, 2023 J U D G M E N T 1. The present writ petition has been filed under Article 226 of the Constitution of India for a direction to the 4th respondent - the Commissioner of Income Tax (Appeals) to consider Ext.P2 and Ext.P3 Appeals in a time bound manner and to give direction to the 1st respondent to defer recovery proceedings against the petitioner till the disposal of Ext.P2 and Ext.P3 Appeals. 2. The Petitioner is a primary Co-operative Society registered under the Kerala Co-operative Societies Act. The petitioner’s claim for exemption to pay Income Tax under Section 80 (P) of the Income Tax Act has been rejected by the assessing authority on the ground that the petitioner society WP(C) NO. 30298 OF 2023 3 had failed to prove that it was worked as per the rules of the Kerala Co-operative Societies Act. 3. The Learned Counsel for the petitioner submits that in identical matters this Court has directed for hearing of the appeals and stayed the recovery of the assessed tax without making payment of 20%. 4. The learned counsel for the petitioner has placed reliance on the order dated 14.07.2022 passed by this Court in the WP (C) No. 22847 of 2022. 5. Sri. Navaneeth.V.Nath, the Learned Counsel for Revenue does not dispute the fact that similar matter was disposed of and directed for an expeditious disposal of the appeal within a period of two months and the steps to realization of the assessed tax have been stayed. 6. Considering this aspect of the matter, the WP(C) NO. 30298 OF 2023 4 present writ petition is also disposed of with a direction to the 2nd and 4th respondents to take the appeals Ext.P2 and Ext.P3 for hearing and dispose them expeditiously within a period of two months. The disposal of the appeals are subject to the cooperation by the assessee or the petitioner. For a period of two months, no coercive measures shall be taken against the petitioner for realization of the tax assessed in this Writ Petition. Sd/- DINESH KUMAR SINGH JUDGE rpr WP(C) NO. 30298 OF 2023 5 APPENDIX OF WP(C) 30298/2023 PETITIONER’S EXHIBITS Exhibit P-1 TRUE PHOTOCOPY OF THE ASSESSMENT ORDER DATED 11-12-2018 ISSUED BY THE 1ST RESPONDENT. Exhibit P-2 TRUE PHOTOCOPY OF THE APPEAL DATED 21-01-2019 SUBMITTED BEFORE THE 4TH RESPONDENT BY THE PETITIONER. Exhibit P-3 TRUE PHOTOCOPY OF THE APPEAL DATED 09-03-2023 SUBMITTED BEFORE THE 2ND RESPONDENT BY THE PETITIONER. Exhibit P-4 TRUE PHOTOCOPY OF THE JUDGMENT DATED 14-07- 2022 IN WP(C) NO: 22847/2022 OF THIS HON'BLE COURT. "