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

WP(C)/13218/2023HC KeralaKLHC01028906202312 April 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What were the facts?

The petitioner, Kuzhur Service Co-operative Bank Limited, is a Primary Agricultural Credit Society. The Assessing Officer (AO) passed an assessment order (Ext.P1) rejecting the petitioner's claim for deduction under Section 80P. The AO's reasoning was that the petitioner did not satisfy the ingredients of a Primary Agricultural Credit Society as per the Kerala Co-operative Societies Act. The petitioner challenged this assessment order before the Commissioner of Income Tax (Appeals) (3rd respondent) by filing an appeal (Ext.P2) and a stay petition (Ext.P3). The petitioner relied on the Supreme Court judgment in Mavilayi Service Cooperative Bank Ltd. v. Commissioner of Income Tax, 2021 (1) KLT 485, to argue that the assessment was incorrect. The writ petition was filed seeking a direction for the timely disposal of the pending appeal and stay petition.

What did the High Court hold?

The High Court did not decide the merits of the case. Instead, it directed the 3rd respondent, the Commissioner of Income Tax (Appeals), 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 primary finding is procedural: the pending appeal and stay petition need to be adjudicated promptly. The ratio is that when an appeal and stay petition are pending before the appellate authority, the High Court may direct expeditious disposal and grant interim protection.

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 and the Supreme Court's ruling in Mavilayi Service Cooperative Bank Ltd. v. Commissioner of Income Tax (2021 (1) KLT 485)? Assessee's Contentions: The petitioner argued that the assessment order is incorrect and that the Supreme Court judgment in Mavilayi Service Cooperative Bank Ltd. v. Commissioner of Income Tax governs the field, implying their eligibility for the deduction under Section 80P. They have filed an appeal and stay petition before the 3rd respondent. Revenue's Contentions: The judgment does not record any specific contentions from the revenue in response to the writ petition. The AO's initial assessment order rejected the deduction on the ground that the petitioner did not satisfy the ingredients of a Primary Agricultural Credit Society as contemplated under the Kerala Co-operative Societies Act.

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. 13218 OF 2023 PETITIONER: KUZHUR SERVICE CO-OPERATIVE BANK LIMITED KUZHUR P. O, THRISSUR, REPRESENTED BY ITS SECRETARY SMT. SUNITHA V.R., PIN – 680 734 BY ADVS. K.S.HARIHARAN NAIR HARIMA HARIHARAN G.REMADEVI RAJATH R NATH DHEERAJ SASIDHARAN MOHANA KUMAR B. RESPONDENTS: 1 THE INCOME TAX OFFICER WARD 2(2), AAYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, THRISSSUR, PIN – 680 001 2 ASSESSMENT UNIT NEAC, MAYUR BHAWAN, CONNAUGHT LANE, NEW DELHI, PIN - 110001 3 COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, DELHI, C-BLOCK, 4TH FLOOR, S.P.M CIVIC CENTER, 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. 13218 OF 2023 2

T.R.RAVI, J. ---------------------------------------- WP (C) No.13218 of 2023 ------------------------------------------- Dated this the 12th day of April, 2023 JUDGMENT Petitioner is a Primary Agricultural Credit Society registered under the Kerala Co

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 80P

All 4,983 judgments and leading authorities on Section 80P →

Recent GST High Court judgments

Search GST case law →