THOTTIPPAL SERVICE CO-OPERATIVE BANK LIMITED vs. THE INCOME TAX OFFICER

WP(C)/13078/2023HC KeralaKLHC01028646202312 April 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What were the facts?

The petitioner, Thottippal Service Co-operative Bank Limited, is a Primary Agricultural Credit Society. The Income Tax Officer (respondent 1) passed an assessment order (Ext.P1) rejecting the petitioner's claim for deduction under Section 80P. The rejection was based on the ground that the petitioner did not satisfy the ingredients of a Primary Agricultural Credit Society as defined under the Kerala Co-operative Societies Act. The petitioner challenged this assessment order before the Assessment Unit (respondent 2) and subsequently filed an appeal (Ext.P2) along with a stay petition (Ext.P3) before the Commissioner of Income Tax (Appeals) (respondent 3). These appeals and stay petitions were pending consideration.

What did the High Court hold?

The High Court did not decide the merits of the case. Instead, it directed the Commissioner of Income Tax (Appeals) (respondent 3) to consider and pass appropriate orders on the petitioner's appeal (Ext.P2) and stay petition (Ext.P3) expeditiously, within a period of 2 months from the date of receipt of a copy of the judgment. The Court also ordered that no coercive steps shall be initiated against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The specific finding on the Section 80P deduction and the ratio decidendi are not determined by this order, as it is procedural.

What were the issues?

1. Whether the assessment order rejecting the deduction under Section 80P is valid, considering the petitioner's status as a Primary Agricultural Credit Society. The assessee contended that the assessment order was incorrect as it failed to consider the binding judgment of the Supreme Court in Mavilayi Service Cooperative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485, which governs the field. The assessee argued that this judgment validates their claim for deduction under Section 80P. The revenue's contentions are not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 80P

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI WEDNE AY, THE 12TH DAY OF APRIL 2023 / 22ND CHAITHRA, 1945 WP(C) NO. 13078 OF 2023 PETITIONER: THOTTIPPAL SERVICE CO-OPERATIVE BANK LIMITED THOTTIPPAL, THRISSUR, PIN – 680 310 REPRESENTED BY ITS SECRETARY SRI. SHAIJU BY ADVS. K.S.HARIHARAN NAIR RAJATH R NATH HARIMA HARIHARAN DHEERAJ SASIDHARAN G.REMADEVI MOHANA KUMAR B. RESPONDENTS: 1 THE INCOME TAX OFFICER WARD 2(5), AAYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, THRISSUR, PIN – 680 001 2 ASSESSMENT UNIT NEAC, MAYUR BHAWAN, CONNAUGHT LANE, NEW DELHI, PIN – 110 001 3 COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, C-BLOCK, 4TH FLOOR, S.P.M CIVIC CENTRE, NEW DELHI, PIN – 110 001 SRI. JOSE JOSEPH. SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.04.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 13078 OF 2023 2 T.R.RAVI, J. ---------------------------------------- WP (C) No.13078 of 2023 ------------------------------------------- Dated this the 12th day of April, 2023 JUDGMENT Petitioner is a Primary Agricultural Credit Society registered under the Kerala Cooperative Socie

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