THE SREEKRISHNAPURAM SERVICE CO-OPERATIVE BANK LTD.NO. F1213 V. THE ASST. COMMISSIONER OF INCOME TAX

WP(C)/20247/2020

AI Insights

The case involves the Sreekrishnapuram Service Co-operative Bank Ltd., which contested the assessment order issued by the Assistant Commissioner of Income Tax and subsequent appellate order by the Commissioner of Income Tax (Appeals). The core issue was the permissibility of deduction under Section 80P of the Income Tax Act as it applies to Co-operative Societies. The petitioner sought a stay on the recovery proceedings while the appeal was pending before the Income Tax Appellate Tribunal. The High Court's decision emphasized the need for a timely resolution of the appeal and maintained the status quo regarding recovery actions until the Tribunal's decision.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 765720 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 29-09-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: HARISANKAR MENON; MEERA MENON
• Keywords: Co-operative societies; Deduction; Income Tax; Stay of Recovery Proceedings
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR TUESDAY, THE 29TH DAY OF SEPTEMBER 2020 / 7TH ASWINA, 1942 WP(C).No.20247 OF 2020(E) PETITIONER/S: THE SREEKRISHNAPURAM SERVICE CO-OPERATIVE BANK LTD.NO. F1213 SREEKRISHNAPURAM SERVICE CO-OPERATIVE BANK LTD. NO.F1213, SREEKRISHNAPURAM P.O., PALAKKAD-679513, REPRESENTED BY ITS SECRETARY, ULLAS KUMAR C. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE ASST. COMMISSIONER OF INCOME TAX CIRCLE 1, INCOME TAX DEPARTMENT, AYAKAR BHAVAN, PALAKKAD-678014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), THRISSUR-680021. 3 THE INCOME TAX APPELLATE TRIBUNAL, AYAKAR BHAVAN, KAKKANADU, KOCHI-682030, REPRESENTED BY ITS REGISTRAR. OTHER PRESENT: SC: JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.09.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.20247 OF 2020(E) 2 JUDGMENT Against Ext.P1 assessment order under the Income Tax Act, the petitioner preferred an appeal before the First Appellate Authority but the same was rejected by Ext.P2 order. Aggrieved by the said order, the petitioner preferred Ext.P3 appeal along with Ext.P4 stay petition before the 3rd respondent. It is the contention of the learned counsel for the petitioner that the issue involved in the appeal is the permissibility of deduction under Section 80P of the Income Tax Act in its application to Co-Operative Societies. It is pointed out that in similar matters this Court has directed the appellate authority to consider and pass orders in the appeal and stayed the recovery proceedings, in the meanwhile. 2. I have heard the learned counsel appearing for the petitioner as also the learned Standing Counsel appearing for the respondents. On a consideration of the facts and circumstances of the case and the submissions made across the Bar and the finding that in similar cases this Court has granted stay of recovery proceedings, pending disposal of the appeal by the appellate authority, I dispose the writ petition by directing the 3rd respondent to consider and pass orders on Ext.P3 appeal preferred by the petitioner within an outer time limit of six months from the date of receipt of a copy of this judgment, after hearing the petitioner. I also make it clear that till such time as orders are passed by the 3rd respondent in the appeal as directed WP(C).No.20247 OF 2020(E) 3 above and the orders communicated to the petitioner, recovery steps for recovery of amounts confirmed against the petitioner by Exts.P1 and P2 orders shall be kept in abeyance. The petitioner shall produce a copy of this judgment together with a copy of the writ petition before the 3rd respondent for further action. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE SJ WP(C).No.20247 OF 2020(E) 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2013-14 DATED 23.12.2019. EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT, FOR THE YEAR 2013-14 DATED 26.08.2020. EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT 2013-14 DATED 19.09.2020. EXHIBIT P4 COPY OF STAY PETITIONER FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DATED 19.09.2020. "