SPACE CENTRE EMPLOYEES CO-OPERATIVE SOCIETY LTD. NO.T 1388, vs. THE INCOME TAX OFFICER

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WP(C)/6466/2023HC KeralaKLHC01015233202324 February 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala did not decide the merits of the case. Instead, it noted that the petitioner society had already availed the statutory remedy by filing an appeal before the Income Tax Appellate Tribunal (respondent 2). Therefore, the writ petition was disposed of by directing the Appellate Authority to consider and pass orders on the pending appeal at the earliest. The Court also ordered that no coercive steps shall be taken against the petitioner pursuant to the assessment orders (Exts. P1 & P2) until the disposal of the appeal (Ext. P3). The specific finding on whether the society satisfied the ingredients of a Primary Agricultural Credit Society was left to be decided by the Appellate Authority.

What were the facts?

The petitioner, Space Centre Employees Co-operative Society Ltd. No.T 1388, is a primary cooperative society registered under the Kerala Co-operative Societies Act, 1969. The Income Tax Officer (respondent 1) issued assessment orders (Exts. P1 & P2) rejecting the society's claim for deduction under Section 80P of the Income Tax Act. The rejection was based on the ground that the society did not provide evidence to satisfy the ingredients of a Primary Agricultural Credit Society as defined under the Kerala Co-operative Societies Act. The society challenged these assessment orders by filing an appeal (Ext. P3) before the Income Tax Appellate Tribunal (respondent 2), which was pending. The present writ petition was filed before the High Court of Kerala seeking directions regarding the pending appeal and to restrain coercive steps.

What were the issues?

1. Whether the petitioner society has satisfied the ingredients of a Primary Agricultural Credit Society as contemplated under the Kerala Co-operative Societies Act, thereby entitling it to a deduction under Section 80P of the Income Tax Act? Assessee's Contention: The petitioner society, being a primary cooperative society, is entitled to the deduction under Section 80P. The assessment orders rejecting this claim are erroneous. Revenue's Contention: The petitioner society has failed to provide evidence to show that it satisfies the ingredients of a Primary Agricultural Credit Society, which is a prerequisite for claiming deduction under Section 80P. Reliance is placed on the judgment of the Hon'ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax.

Which sections of the Income-tax Act were involved?

Section 80P

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH, KENDRIYA BHAVAN,

NO.ITBA/PNL/F/271B/ 2019-20/1016005729(1) DATED 15-05-2019 ISSUED BY THE 1ST RESPONDENT Exhibit-P2 AOF THE ORDER NO.ITBA/NFAC/S/250/ 2022-23/1047756010(1) DATED 01-12-2022 ISSUED BY THE FIRST APPELLATE AUTHORITY UNDER THE FACELESS SCHEME Exhibit-P3 AOF THE APPEAL MEMORANDUM DATED 18-01-2023, ALONG WITH AFFIDAVIT AND CHELLAN, FILED BEFORE THE 2ND RESPONDENT Exhibit-P4 AOF THE STAY PETITION FILED IN EXT-P3 APPEAL DATED 18-01-2023 Exhibit-P5 AJUDGMENT DATED 16-11-2022 IN WP(C) NO.36624 OF 2022 OF THIS HON'BLE COURT

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