PRIMARY AGRICULTURE CREDIT V. COMMISSIONER OF INCOME TAX (APPEALS)

WP/5647/2018

AI Insights

The case involves the Primary Agriculture Credit Cooperative Society Ltd., Chickmagalur, which filed a writ petition against the Commissioner of Income Tax (Appeals) and the Assistant Commissioner of Income Tax. The petitioner sought a mandamus direction for the expeditious disposal of their pending appeal and stay application regarding an assessment order that raised a demand of Rs.13,54,990 for the assessment year 2014-15. The assessment order disallowed deductions under Section 80P(2)(a) of the Income Tax Act, 1961, which the petitioner claimed was unjust as they were engaged in banking and credit facilities for their members. The court did not decide on the merits of the case but emphasized the need for a timely decision on the stay application and the appeal.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 755193 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 06-02-2018
• Assessment Year: misc
• Other Referred Cases: W.P.No.15398/2013 (General Insurance Employees' Co-operative Credit Society Ltd.)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Assessee Lawyers: MAHESH UPPIN
• Keywords: Appeal; Assessment Order; Deduction; Income Tax; Stay Application
• Section: 220(6); 80P(2)(a)

Judgement Text

" 1/6 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 06th DAY OF FEBRUARY 2018 BEFORE THE HON'BLE Dr.JUSTICE VINEET KOTHARI WRIT PETITION No.5647/2018 (T-IT) BETWEEN: PRIMARY AGRICULTURE CREDIT CO-OPERATIVE SOCIETY LTD., SANGAMESHWARPET CHIKKAMAGALURU-577 136 REPRESENTED BY ITS C.E.O MRS. KALAVATHI. ... PETITIONER (By Sri. MAHESH R UPPIN, ADV.) AND: 1. COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, NO.21/16, RESIDENCY ROAD, NAZARBAD, MYSURU-570 010. 2. ASST. COMMISSIONER OF INCOME TAX WARD-2, CHIKKAMAGALURU-577 136. ... RESPONDENTS THIS W.P. IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE LETTER DT: 23-01-2018 ISSUED BY THE 2ND RESPONDENT MARKED AS ANNEXURE-F; DIRECT THE 1ST RESPONDENT TO DISPOSE OFF THE APPEAL ANNEXURE-C FILED BY THE PETITIONER WITHIN A PERIOD OF ONE MONTH AND TILL THE DISPOSAL OF THE SAID APPEAL, NOT MAKE ANY DEMAND OF INCOME TAX FROM THE PETITIONER THIS W.P. COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING:- Date of Order 06-02-2018 W.P.No.5647/2018 Primary Agriculture Credit Co-operative Society Ltd.,Vs. Commissioner of Income Tax (Appeals) & Anr. 2/6 ORDER Mr. Mahesh R.Uppin, Adv. for Petitioner 1. The petitioner - Primary Agriculture Credit Cooperative Society Ltd., Chickmagalur, has filed this writ petition in this Court on 05.02.2018 seeking a mandamus direction to the Respondent – Commissioner of Income Tax (Appeals) to decide the pending appeal before him as well as the stay application expeditiously. 2. The said appeal was filed by the petitioner- assessee before the Commissioner of Income Tax (Appeals) aggrieved by the assessment order Annexure- A dated 18.12.2017 for the A.Y. 2014-15 by which, the Assessing Authority raised a demand of Rs.13,54,990/- disallowing the Deduction under Section 80P(2)(a) of the Income Tax Act, 1961, under which, the petitioner- assessee claimed 100% deduction/exemption from the payment of income tax on the ground of it being engaged in the business of banking or extending primary credit facility to its members. Date of Order 06-02-2018 W.P.No.5647/2018 Primary Agriculture Credit Co-operative Society Ltd.,Vs. Commissioner of Income Tax (Appeals) & Anr. 3/6 3. The learned Assessing Authority however denied the said deduction under Section 80P(2)(a) of the Act on the ground that the petitioner-assessee was interalia also engaged besides providing credit facility to its members, other business activities in the nature of sale of agricultural implements, fertilizers, seeds etc., 4. The learned counsel for the petitioner Mr.Mahesh R.Uppin however submitted that in the present writ petition only a direction to the Commissioner of Income Tax (Appeals) to decide the pending appeal before him as expeditiously as possible is sought. For this purpose, he relied upon an order passed by the co-ordinate bench of this Court in W.P.No.15398/2013 (General Insurance Employees’ Co-operative Credit Soceity Ltd.,) decided on 28.05.2013. 5. Having heard the learned counsel for the petitioner, this Court is of the opinion that without expressing any opinion on the merits of the claim of the Date of Order 06-02-2018 W.P.No.5647/2018 Primary Agriculture Credit Co-operative Society Ltd.,Vs. Commissioner of Income Tax (Appeals) & Anr. 4/6 petitioner, as it is a mixed question of facts and law, the petitioner-assessee should be allowed to pursue his regular alternative remedy by way of an appeal which he has also availed. 6. As far as the expeditious disposal of the appeal and the stay application filed before the Appellate Authority is concerned, such authorities even without any specific direction from the Constitutional Courts are expected to decide the appeal expeditiously and if that is not practically possible, at least, to decide the stay applications filed for interim relief as expeditiously as possible, so that no unnecessary prejudice is caused to the appellants. The appellant-assessee in the present case is said to have filed the separate stay petition also before the Commissioner of Income Tax (Appeals) which is not yet decided. 7. The learned counsel for the petitioner also submitted that an application has also been filed before the Assessing Authority for not treating the assessee in Date of Order 06-02-2018 W.P.No.5647/2018 Primary Agriculture Credit Co-operative Society Ltd.,Vs. Commissioner of Income Tax (Appeals) & Anr. 5/6 default under Section 220(6) of the Act vide Annexure- E dated 18.01.2018 in view of pending of appeal before the Commissioner of Income Tax (Appeals), but both these authorities have not passed any orders on the same, after providing a reasonable opportunity of hearing to the petitioner. 8. The present writ petition is therefore considered as premature and the same is disposed of with a liberty and direction to the petitioner to appear before both the concerned Respondents-authorities, namely, the Commissioner of Income Tax (Appeals) and the Assessing Authority and pursue for disposal of its stay application before the Commissioner of Income Tax (Appeals) and application under Section 220(6) of the Act before the concerned Income Tax Officer. The said authorities are expected to pass the appropriate speaking orders in the matter after providing a reasonable opportunity of hearing to the petitioner- assessee. Date of Order 06-02-2018 W.P.No.5647/2018 Primary Agriculture Credit Co-operative Society Ltd.,Vs. Commissioner of Income Tax (Appeals) & Anr. 6/6 The petitioner in the first instance may appear before the Commissioner of Income Tax (Appeals) in the first instance on 20.02.2018 and before the Asst.Commissioner of Income Tax, Ward-2, Chikkamagalur, on 27.02.2018. The said authorities are directed to pass appropriate speaking orders in the matter on or before 28.02.2018 and up to 28.02.2018, no precipitative action be taken against the petitioner except in accordance with the orders to be passed by these authorities in accordance with law as indicated above. The writ petition is disposed of with the aforesaid observations. No costs. Copy of this order be sent to the Respondents forthwith. Sd/- JUDGE Srl. "