KOLLAM DISTRICT POSTAL TELCOM V. INCOME TAX OFFICER

WP(C)/20467/2019

AI Insights

The case involves M/S Kollam District Postal Telcom BSNL Employee's Co-operative Society Ltd, which challenged the assessment orders for the years 2012-2013 to 2016-2017 issued by the Income Tax Officer, Kollam. The society appealed against these orders to the Commissioner of Income Tax (Appeals), who conditioned the stay of the balance amount on the payment of 20% of the total demand. The petitioner contested this condition, citing a Full Bench decision of the Kerala High Court favoring the assessee on a similar issue concerning the disallowance of deduction under Section 80P of the Income Tax Act. The court, referencing previous judgments, found merit in the petitioner's arguments and quashed the stay condition, directing a re-evaluation of the appeals without the disputed condition.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 761131 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 27-09-2019
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, Calicut [2019 (2) KHC 287 (FB)], W .A.1536 of 2019 and connected cases
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: C A JOJO; JACOB CHACKO; MATHEWS JOSEPH; SWATHY
• Keywords: Appeals; Assessment orders; Deduction Disallowance; Income Tax; Stay Application
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR FRIDAY, THE 27TH DAY OF SEPTEMBER 2019 / 5TH ASWINA, 1941 WP(C).No.20467 OF 2019(G) PETITIONER: M/S.KOLLAM DISTRICT POSTAL TELCOM BSNL EMPLOYEE'S CO-OPERATIVE SOCIETY LTD NO. Q 880, KOLLAM P.O, PIN-691 001, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SRI.JACOB CHACKO SRI.MATHEWS JOSEPH SMT.SWATHY S. RESPONDENTS: 1 INCOME TAX OFFICER WARD-1, KOLLAM RANGE, AYAKAR BHAVAN, KOLLAM-691 001 2 COMMISSIONER OF INCOME TAX (APPEALS)-1, OFFICE OF THE COMMISSIONER OF INCOME TAX (APPEALS), TRIVANDRUM-695 003. 3 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, TRIVANDRUM-695 003 BY ADV.SRI.CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.09.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.20467 OF 2019(G) 2 JUDGMENT Against Exts.P1 to P5 assessment orders under the Income Tax Act for the assessment years 2012-2013 to 2016-2017, the petitioner has preferred Exts.P7 to P11 appeals before the 2nd respondent. In the stay application preferred along with the appeals, the 2nd respondent directed a payment of 20% of the total demand as a condition for stay of the balance amount pending disposal of the appeals. It is the contention of the learned counsel for the petitioner that the issue involved in the assessment pertains to the dis -allowance of deduction under Section 80P of the Income Tax Act. It is pointed out that the issue was decided in favour of the assessee by a Full Bench of this Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, Calicut [2019 (2) KHC 287 (FB)]. It is also pointed out that taking note of the Full Bench decision of this Court another Division Bench of this Court in W .A.1536 of 2019 and connected cases held that the assesees are entitled to a complete stay, pending disposal of the appeals by the first appellate authority. 2. I have heard the learned counsel appearing for the petitioner as also the learned Standing counsel appearing for the WP(C).No.20467 OF 2019(G) 3 Income Tax Department. 3. On a consideration of the facts and circumstances of the case as also the submissions made across the Bar and taking note of the judgment of Full Bench of this Court as also the Division Bench judgment referred to by the learned counsel for the petitioner, I deem it appropriate to quash Ext.P17 order, and direct the 2nd respondent to consider and pass reasoned orders on Exts.P7 to P11 appeals within an outer time limit of six months from the date of receipt of a copy of this judgment, after hearing the petitioner. It is made clear that till such time as orders are passed by the 2nd respondent as directed, and the orders communicated to the petitioner, recovery steps for recovery of amounts confirmed against the petitioner by Exts.P1 to P5 assessment orders shall be kept in abeyance. The petitioner shall produce a copy of the writ petition together with a copy of this judgment, before the 2nd respondent, for further action. The writ petition is disposed as above. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE mns WP(C).No.20467 OF 2019(G) 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER AY 2012- 13 DATED 29.12.2018 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 A TRUE COPY OF THE ASSESSMENT ORDER AY 2013- 14 DATED 29.12.2018 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 A TRUE COPY OF THE ASSESSMENT ORDER AY 2014- 15 DATED 29.12.2018 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P4 A TRUE COPY OF THE ASSESSMENT ORDER AY 2014- 15 DATED 29.12.2018 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P5 A TRUE COPY OF THE ASSESSMENT ORDER AY 2016- 17 DATED 31.12.2018 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P6 A TRUE COPY OF THE LETTER DATED 11.02.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P7 A TRUE COPY OF THE APPEAL DATED 29.01.2019 FILED FOR AY 2012-13 BEFORE THE 2ND RESPONDENT. EXHIBIT P8 A TRUE COPY OF THE APPEAL DATED 29.01.2019 FILED FOR AY 2013-14 BEFORE THE 2ND RESPONDENT. EXHIBIT P9 A TRUE COPY OF THE APPEAL DATED 29.01.2019 FILED FOR AY 2014-15 BEFORE THE 2ND RESPONDENT. EXHIBIT P10 A TRUE COPY OF THE APPEAL DATED 29.01.2019 FILED FOR AY 2014-15 BEFORE THE 2ND RESPONDENT. EXHIBIT P11 A TRUE COPY OF THE APPEAL DATED 29.01.2019 FILED FOR AY 2016-17 BEFORE THE 2ND RESPONDENT. EXHIBIT P12 A TRUE COPY OF THE REVIEW PETITION BEFORE THE 3RD RESPONDENT FOR ALL ASSESSMENT YEARS DATED 20.02.2019 WP(C).No.20467 OF 2019(G) 5 EXHIBIT P13 A TRUE COPY OF THE NOTICE UNDER S.226(3) OF THE IT ACT DATED 01.03.2019 ISSUED BY THE 1ST RESPONDENT TO THE KOLLAM DISTRICT CO- OPERATIVE BANK. EXHIBIT P14 A TRUE COPY OF THE JUDGMENT IN WP(C) NO. 7118/2018 DATED 08.03.2019. EXHIBIT P15 A TRUE COPY OF THE ORDER ON REVIEW PETITION BY THE 3RD RESPONDENT DATED 04.04.2019. EXHIBIT P16 A TRUE COPY OF THE JUDGMENT IN WP(C) NO. 12312/2019 DATED 18.06.2019. EXHIBIT P17 A TRUE COPY OF THE ORDER ON REVIEW PETITION BY THE 3RD RESPONDENT DATED 17.07.2019. EXHIBIT P18 A TRUE COPY OF THE JUDGMENT IN WA NO. 1536/2019 DATED 01.07.2019. RESPONDENTS EXHIBITS:NIL //TRUE COPY// P.A TO JUDGE "