Wp(C)/44199/2023 Of Karakulam Service Co-Operative Bank Ltd v. The Income Tax Officer

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ated this the 9[th] day of January, 2024 These writ petitions involved common question of lawand facts and therefore, same are taken together and decidedaccordingly. 2.The petitioner society claims to be a PrimaryAgricultural Credit Co-operative Society. The petitioner filedreturn of its income for the assessment year 2012-13 to 2017-18 after notice under Section 148 of the Income Tax Act wasissued. The petitioner claimed declared nil income afterclaiming 100% deduction under Section 80P of the Income TaxAct. However, the assessing authority did not accept the claimof the petitioner for exemption under Section 80P of theIncome Tax Act and vide assessment orders dated 20.12.2019under Section 143(3) read with Section 147 of the Income TaxAct is allowed the exemption under Section 80P. Aggrieved bythe said assessment orders, the petitioner had filed appealsbefore the 2nd respondent. The 2nd respondent following the judgment of the Supreme Court in the case of MavilayiService Co-operative Bank Ltd. V. Commissioner ofIncome Tax, Calicut [2021] 123 taxmann.com 161 (SC),allowed the deduction claimed by the petitioner under Section80P(2)(a)(i) of the Income Tax Act. However, the 2ndrespondent did not allow the interest income received by thepetitioner on deposits. Aggrieved by the said order dated28.08.2023 passed by the 2nd respondent on appeals, thepetitioner had preferred further appeal before the Income TaxAppellate Tribunal in Ext.P3 along with applications forcondoning the delay of 39 days as well as the stay petition. 3.Learned counsel for the petitioner submits that the3rd respondent has not taken decision on the application forcondoning the delay as well as the stay petition and thepetitioner is being threatened by recovery of tax inaccordance with the order passed by the 2nd respondent dated28.08.2023. 4.Learned counsel for the petitioner submits that the3rd respondent may be given direction to consider and passorders on the applications for condoning the delay as well asthe stay petition, expeditiously. Considering the said prayer, these writ petitions standdisposed of with direction to the 3rd respondent to considerand pass orders on applications for condoning the delay aswell as the stay petition expeditiously, preferably within aperiod of two months. Sd/- DINESH KUMAR SINGH JUDGE APPENDIX OF WP(C) 44181/2023 APPENDIX OF WP(C) 554/2024 PETITIONER EXHIBITS EXHIBIT P1TRUE COPY OF THE ASSESSMENT ORDER AND DEMANDNOTICE DATED 20.12.2019 FOR AY 2012-13 ISSUED BY THE 1ST RESPONDENTExhibit P2TRUE COPY OF THE APPELLATE ORDER PASSED BY THE 2ND RESPONDENT FOR THE AY 2012-13 DATED 28.08.2023 Considering the said prayer, these writ petitions standdisposed of with direction to the 3rd respondent to considerand pass orders on applications for condoning the delay aswell as the stay petition expeditiously, preferably within aperiod of two months. Sd/- DINESH KUMAR SINGH JUDGE APPENDIX OF WP(C) 44181/2023 APPENDIX OF WP(C) 554/2024 PETITIONER EXHIBITS EXHIBIT P1TRUE COPY OF THE ASSESSMENT ORDER AND DEMANDNOTICE DATED 20.12.2019 FOR AY 2012-13 ISSUED BY THE 1ST RESPONDENTExhibit P2TRUE COPY OF THE APPELLATE ORDER PASSED BY THE 2ND RESPONDENT FOR THE AY 2012-13 DATED 28.08.2023 Exhibit P35. TRUE COPY OF THE MEMORANDUM OF APPEAL FORTHE ASSESSMENT YEAR 2012-13 DATED 23.11.2023FILED BEFORE THE 3RD RESPONDENTExhibit P4TRUE COPY OF THE STAY PETITION DATED 23.11.2023 FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT Exhibit P5TRUE COPY OF DELAY PETITION DATED 23.11.2023FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT APPENDIX OF WP(C) 44199/2023 PETITIONER EXHIBITS Exhibit P1TRUE COPY OF THE ASSESSMENT ORDER AND DEMANDNOTICE 24.12.2018 FOR AY 2016-17 Exhibit P2TRUE COPY OF THE APPELLATE ORDER PASSED BY THE 2ND RESPONDENT FOR THE AY 2016-17 DATED 28.08.2023Exhibit P3TRUE COPY OF THE MEMORANDUM OF APPEAL FOR THE ASSESSMENT YEAR 2016-17 DATED 23.11.2023FILED BEFORE THE 3RD RESPONDENTExhibit P4TRUE COPY OF THE STAY PETITION DATED 23.11.2023 FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT Exhibit P5TRUE COPY OF DELAY PETITION DATED 23.11.2023FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT Exhibit P6TRUE COPY OF THE REVENUE RECOVERY NOTICE DATED 28.09.2023 ISSUED BY THE 1ST RESPONDENT APPENDIX OF WP(C) 44244/2023 PETITIONER EXHIBITS EXHIBIT P1TRUE COPY OF ASSESSMENTORDER FOR AY 2017-18 DATED 16.12.2019Exhibit P2TRUE COPY OF APPELLATE ORDER FOR AY 2017-18 DATED 28.08.2023EXHIBIT P3TRUE COPYOF APPEAL MEMORANDUM DATED 27.11.2023EXHIBIT P4TRUE COPY OF STAY PETITION DATED 27.11.2023EXHIBIT P5TRUECOPYOF DELAY PETITION DATED 27.11.2023EXHIBIT P6TRUE COPY OF NOTICE ISSUED BY THE 1ST RESPONDENT DATED 28.09.2023