Renjith K.R. Vs Assessing Officer (Kerala High Court)
Kerala HC Stays Recovery – NFAC Directed to Decide Co-op Bank’s 80P Appeal in Light of Mavilayi Ruling
The petitioner, representing the Government Employees Co-operative Bank Ltd. No.57, challenged recovery action initiated based on the assessment order for AY 2019–20 while its appeal & stay petition were still pending before the NFAC. The petitioner contended that the primary dispute concerned denial of deduction u/s 80P of the Income-tax Act, which stood settled in favour of co-operative societies by the Supreme Court in Mavilayi Service Co-operative Bank v. CIT, Calicut [(2021) AIR SC 612].
After hearing both sides, the Court observed that the petitioner had already invoked the statutory remedy through appeal, & it was for the appellate authority (NFAC) to decide the matter in light of the Mavilayi judgment. The Court directed the NFAC to dispose of the appeal expeditiously after granting an opportunity of hearing, specifically considering the binding precedent of the Supreme Court.
It was further ordered that till such decision is taken, all recovery proceedings pursuant to the impugned assessment order shall remain stayed.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The petitioner is a co-operative society and is aggrieved by Ext.P3 order of assessment for the year 2019-2020. As against the said Ext.P3 assessment order and Ext.P4 appeal has been filed. Ext.P5 is the stay petition, filed by the petitioner.
