PEROORKADA SERVICE CO-OPERATIVE BANK LIMITED V. THE INCOME TAX OFFICER

WP(C)/31780/2022

AI Insights

The case involves Peroorkada Service Co-operative Bank Limited, which contested the denial of deductions under Section 80P of the Income Tax Act, 1961, for the assessment years 2012-2013 and 2018-2019. The bank had filed appeals against the assessment orders, which were still pending when the tax demands were made. The bank argued that the requirement to pay 20% of the assessed amount for a stay was unjust, especially since the appeals were not yet decided. The court's decision focused on procedural fairness, allowing the bank to seek a stay on the recovery of the assessed amounts while the appeals were pending.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 750543 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 07-10-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: C A JOJO
• Keywords: Appeal; Assessment Order; Deduction; Income Tax; Stay Petition
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 7TH DAY OF OCTOBER 2022 / 15TH ASWINA, 1944 WP(C) NO. 31780 OF 2022 PETITIONER: PEROORKADA SERVICE CO-OPERATIVE BANK LIMITED NO.T.1412 PEROORKADA P.O, THIRUVANANTHAPURAM DISTRICT, KERALA, PIN-695005 REPRESENTED BY ITS SECRETARY, PIN - 695005 BY ADV C.A.JOJO RESPONDENTS: 1 THE INCOME TAX OFFICER WARD-2(1), KOWDIAR, TRIVANDRUM-695003, PIN - 695003 2 COMMISSIONER OF INCOME TAX (APPEALS)-1 OFFICE OF THE COMMISSIONER OF INCOME TAX (APPEALS), KOWDIAR, TRIVANDRUM-695003, PIN - 695003 3 THE PRINCIPAL COMMISSIONER OF INCOME TAX OFFICE OF THE COMMISSIONER OF INCOME TAX, KAVADIYAR P.O, TRIVANDRUM-695003, PIN - 695003 4 COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI-110001 , PIN - 110001 5 INCOME TAX OFFICER NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI-110001 , PIN - 110001 OTHER PRESENT: ADV. JOSE JOSEPH (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P (C) No.31780/2022 -2- J U D G M E N T The petitioner suffered orders of assessment for assessment year 2012-2013 (Ext.P1) and for assessment year 2018-2019 (Ext.P8) under the provisions of the Income Tax Act, 1961. The petitioner's claim for deduction under Section 80P of the Income Tax Act was rejected by the assessing authority. The petitioner has filed Ext.P3 appeal against Ext.P1 assessment order and Ext.P10 appeal against Ext.P8 assessment order. The grievance of the petitioner is that even when the appeals were pending consideration of the appellate authority, demands have been made for payment of amounts due under Ext.P1 and P8 assessment orders. It is also the case of the petitioner that though the petitioner filed applications for stay before the assessing authority, such stay was permitted only on payment of 20% of the assessed amount. It is the case of the petitioner that deduction under Section 80P of the Act was wrongly denied and has matter been properly considered the petitioner would not have faced any demand whatsoever. 2. Heard the learned Standing counsel appearing for the Income Tax Department also. 3. Having regard to the facts and circumstances of the case and considering the orders issued by this court in similar circumstances, this writ petition is disposed of directing the National Faceless Appeal Centre to provide a link to the petitioner for uploading stay petition in Ext.P3 and Ext.P10 appeals within a period of one month from the date of receipt of a copy of this judgment. If the petitioner files applications for stay within 10 days from the date on which the link is provided by the National Faceless Appeal Centre, steps for recovery of any W.P (C) No.31780/2022 -3- amount due under Ext.P1 and P8 orders of assessment for assessment years 2012- 13 and 2018-19 respectively shall remain suspended till a decision is taken on the stay petitions filed by the petitioner. Sd/- GOPINATH P. JUDGE AMG W.P (C) No.31780/2022 -4- APPENDIX OF WP(C) 31780/2022 PETITIONER EXHIBITS Exhibit P1 EXHIBIT-P1: A TRUE COPY OF THE ASSESSMENT ORDER FOR AY 2012-13 DATED 23.12.2019 ISSUED BY THE FIRST RESPONDENT Exhibit P2 EXHIBIT P2: A TRUE COPY OF THE DEMAND NOTICE DATED 23.12.2019 ISSUED BY THE FIRST RESPONDENT Exhibit P3 EXHIBIT P3: A TRUE COPY OF THE E-FILED APPEAL FOR AY 2012-13 DATED 31.01.2020 FILED BEFORE THE 2ND RESPONDENT Exhibit P4 EXHIBIT P4: A TRUE COPY OF THE DEMAND FOR 20% OF TAX DATED 12.08.2021 ISSUED BY THE 1ST RESPONDENT Exhibit P5 EXHIBIT P5: A TRUE COPY OF THE REVIEW PETITION DATED 11.10.2021 BEFORE THE 3RD RESPONDENT Exhibit P6 EXHIBIT-P6: A TRUE COPY OF THE JUDGMENT IN WA NO.1530 OF 2019 OF THE DIVISION BENCH OF THIS HON'BLE COURT Exhibit P7 EXHIBIT P7: A TRUE COPY OF THE ORDER DATED 29.08.2022 ISSUED BY THE 3RD RESPONDENT Exhibit P8 EXHIBIT P8: A TRUE COPY OF THE ASSESSMENT ORDER FOR AY 2018-19 DATED 22.04.2021 ISSUED BY THE FIFTH RESPONDENT Exhibit P9 EXHIBIT P9: A TRUE COPY OF THE DEMAND NOTICE DATED 22.04.2021 ISSUED BY THE FIFTH RESPONDENT Exhibit P10 EXHIBIT P10: A TRUE COPY OF THE E-FILED APPEAL FOR AY 2018-19 DATED 12.05.2021 FILED BEFORE THE 4TH RESPONDENT Exhibit P11 EXHIBIT-P11: A TRUE COPY OF THE DEMAND FOR 20% OF TAX DATED 29.10.2021 ISSUED BY THE 1ST RESPONDENT Exhibit P12 EXHIBIT P12: A TRUE COPY OF THE REVIEW PETITION DATED 03.11.2021 BEFORE THE 3RD RESPONDENT Exhibit P13 EXHIBIT P13: A TRUE COPY OF THE ORDER DATED 26.08.2022 ISSUED BY THE 3RD RESPONDENT. "