THE MANKARA SERVICE CO-OPERATIVE BANK LTD. NO. P.363 V. THE ADDITIONAL /JOINT/ DEPUTY / ASST. COMMISSIONER OF INCOME TAX / INCOME -TAX OFFICER

WP(C)/8947/2021

AI Insights

The case involves the Mankara Service Co-operative Bank Ltd., which is the petitioner, challenging an assessment order issued by the Income Tax Officer (1st respondent) for the assessment year 2018-19. The petitioner had claimed benefits under Section 80P of the Income Tax Act, which were denied by the 1st respondent. The petitioner filed an appeal and a stay petition with the National Faceless Appeal Centre, which were still pending. Despite this, the 1st respondent insisted on recovering the dues as per the assessment order. The petitioner sought a stay on the recovery proceedings until the appeal was resolved. The court decided to keep the recovery proceedings in abeyance until the stay petition was decided.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 691543 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 08-04-2021
• 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: Assessment Order; Income Tax; Recovery proceedings; Stay Petition
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.M.BADAR THURSDAY, THE 08TH DAY OF APRIL 2021 / 18TH CHAITHRA, 1943 WP(C).No.8947 OF 2021(P) PETITIONER/S: THE MANKARA SERVICE CO-OPERATIVE BANK LTD. NO. P.363 MANKARA P.O. PALAKKAD 678 613, REPRESENTED BY ITS SECRETARY, BABU.P., BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE ADDITIONAL /JOINT/ DEPUTY / ASST. COMMISSIONER OF INCOME TAX / INCOME -TAX OFFICER NATIONAL E-ASSESSMENT CENTRE, DELHI 110 001. 2 NATIONAL FACELESS APPEAL CENTRE,DELHI 110 001, REPRESENTED BY THE PRINCIPAL CHIEF COMMISSIONER. SRI. JOSE JOSEPH, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.04.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.8947 OF 2021 2 JUDGMENT Dated this the 8th day of April 2021 Heard both sides. 2. Learned counsel appearing for the petitioner submits that the petitioner is an assessee under the Income Tax Act. The petitioner had claimed benefit under Section 80P of the Income Tax Act for the assessment year 2018-19. However, the 1st respondent has denied those benefits and the assessment order at Ext.P1 for the year 2018-19 came to be passed. The petitioner therefore challenged the said assessment order by filing an appeal at Ext.P3 accompanied by the stay petition at Ext.P3(a), which are pending before the 2nd respondent. 3. Learned counsel appearing for the petitioner further submits that despite pendency of the appeal (Ext.P3) and state petition [Ext.P3(a)] before the 2nd respondent, the 1st respondent is insisting for recovery of the amount in arrears as per the assessment order at Ext.P1. Learned counsel appearing for the petitioner therefore submits that recovery in pursuant to the assessment order at Ext.P1 be stayed till disposal of the appeal and the 2nd respondent be directed to dispose of the appeal with the stay petition. 4. Learned Standing Counsel appearing for the respondents WP(C).No.8947 OF 2021 3 submits that the 2nd respondent can be directed to dispose of the stay petition at Ext.P3(a) in a time bound manner instead of staying recovery in pursuant to the assessment order at Ext.P1 till disposal of the appeal. 5. In view of the submissions advanced by both parties and in the light of facts of the instant case, the writ petition is disposed of with the following prayers:- The 2nd respondent is directed to consider and decide the stay petition at Ext.P3(a) filed in the statutory appeal (Ext.P3) by the petitioner, after following the due process of law within a period of two months from the date of communication of this judgment. The petitioner to cooperate with the 2nd respondent in disposal of the stay petition expeditiously. Till disposal of the stay petition at Ext.P3(a), proceedings for recovery initiated in pursuant to the Ext.P1 assessment order shall be kept in abeyance. The learned Standing Counsel appearing for the respondents shall inform the respondents about this judgment for necessary compliance. SD/- A.M.BADAR ajt JUDGE WP(C).No.8947 OF 2021 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2018-19 DTD. 22.03.2021. EXHIBIT P2 COPY OF THE S.O.NO. 3296/(E) ISSUED BY THE MINISTRY OF FINANCE NEW DELHI DTD. 25.09.2020. EXHIBIT P2 (a) COPY OF THE S.O. NO. 3297(E) ISSUED BY THE MINISTRY OF FINANCE, NEW DELHI 25.09.2020. EXHIBIT P3 COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 29.03.2021. EXHIBIT P3 (a) COPY OF STAY PETITION FIELD BY THE PETITIONER BEFORE THE ADDITIONAL/JOINT/ASSISTANT COMMISSIONER OF INCOME TAX, COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS ASSESSMENT CENTRE, DELHI DTD. 29.3.2021. "