THE KOONAMMOOCHI PEOPLES SERVICE CO-OPERATIVE BANK LTD.NO. 603, V. THE COMMISSIONER OF INCOME TAX (APPEALS),

WP(C)/14719/2020

AI Insights

The case involves the Koonammoochi Peoples Service Co-operative Bank Ltd., which challenged the assessment orders under the Income Tax Act. The primary legal issue was the permissibility of a deduction under Section 80P of the Income Tax Act concerning Co-operative Societies. The petitioner had filed appeals and stay petitions against the assessment orders, which were conditionally granted by the Income Tax Officer, requiring a 20% payment of the disputed amounts. The High Court's intervention was sought to restrain these recovery actions pending the decision on the appeals.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 753339 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 22-07-2020
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: P C SASIDHARAN
• Keywords: Assessment Order; Co-operative societies; Deduction; Income Tax; Stay Petition
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR WEDNESDAY, THE 22ND DAY OF JULY 2020 / 31ST ASHADHA, 1942 WP(C).No.14719 OF 2020 PETITIONER/S: THE KOONAMMOOCHI PEOPLES SERVICE CO-OPERATIVE BANK LTD.NO. 603,KOONAMMOOCHI.P.O., THRISSUR-680504, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.P.C.SASIDHARAN RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, S.T.NAGAR, THRISSUR-680001. 2 THE INCOME TAX OFFICER, WARD 1 AND TPS, GURUVAYOOR, OFFICE OF THE INCOME TAX OFFICER, WEST NADA, GURUVAYOOR THRISSUR-680101. OTHER PRESENT: SC-SRI.JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.07.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.14719 OF 2020 2 JUDGMENT Against Exts.P1, P6 and P11 assessment orders under the Income Tax Act, the petitioner has preferred Exts.P3, P8 and P13 appeals together with Exts.P5, P10 and P15 stay petitions before the 1st respondent. It would appear that on approaching the 2nd respondent, pending disposal of the stay petition, the petitioner was directed by Exts.P4, P9 and P14 orders to pay 20% of the disputed amounts as a condition for grant of stay for recovery of the balance amount, pending consideration of the stay application by the appellate authority. The case of the petitioner in the writ petition is essentially that the issue involved in the appeal before the appellate authority is the permissibility of a deduction under Section 80P of the Income Tax Act in its relation to Co-operative Societies. It is pointed out that in respect of the same issue, this Court has in connected matters directed the appellate authority to consider and pass orders in the appeal, and restrained the respondents from resorting to any coercive steps for recovery of the disputed amounts, till then. 2. I have heard the learned counsel for the petitioner as also Sri.Jose Joseph, the learned Standing Counsel for the respondents. On a consideration of the facts and circumstances of the case and the submissions made across the Bar and taking cue from the judgments of this Court in similar matters, I deem it appropriate to dispose the writ petition by directing the 1st respondent to consider and pass orders on Exts.P3, P8 and P13 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 WP(C).No.14719 OF 2020 3 are passed by the 1st respondent as directed, and the order communicated to the petitioner, the recovery steps for recovery of amounts confirmed against the petitioner by the assessment orders in question shall be kept in abeyance. Further, in view of the directions given above, I set aside Exts.P4, P9 and P14 orders of the 2nd respondent that direct the petitioner to remit 20% of the disputed amounts, pending disposal of the appeal. The petitioner shall produce a copy of this judgment together with a copy of the writ petition before the 2nd respondent for further action. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE sd WP(C).No.14719 OF 2020 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 1.12.2017. EXHIBIT P2 TRUE COPY OF THE DEMAND NOTICE DATED 1.12.2017. EXHIBIT P3 TRUE COPY OF THE APPEAL DATED 2.1.2018. EXHIBIT P4 TRUE COPY OF THE ORDER DATED 2.7.2019. EXHIBIT P5 TRUE COPY OF THE STAY PETITION DATED 12.7.2019. EXHIBIT P6 TRUE COPY OF THE ASSESSMENT ORDER DATED 19.11.2018. EXHIBIT P7 TRUE COPY OF THE DEMAND NOTICE DATED 20.11.2018. EXHIBIT P8 TRUE COPY OF THE APPEAL DATED 15.12.2018. EXHIBIT P9 TRUE COPY OF THE ORDER DATED 2.7.2019. EXHIBIT P10 TRUE COPY OF THE STAY PETITION DATED 12.7.2019. EXHIBIT P11 TRUE COPY OF THE ASSESSMENT ORDER DATED 21.11.2018. EXHIBIT P12 TRUE COPY OF THE DEMAND NOTICE DATED 21.11.2018. EXHIBIT P13 TRUE COPY OF THE APPEAL DATED 8.12.2018. EXHIBIT P14 TRUE COPY OF THE ORDER DATED 2.7.2019. EXHIBIT P15 TRUE COPY OF THE STAY PETITION DATED 12.7.2019. EXHIBIT P16 TRUE COPY OF THE JUDGMENT DATED 1.7.2019 IN W.A.NO.1536 OF 2019. "