PARIYARAM SERVICE CO OPERATIVE BANK LTD vs. THE INCOME TAX OFFICER

WP(C)/12855/2023HC KeralaKLHC01028287202311 April 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What were the facts?

The petitioner, Pariyaram Service Co-operative Bank Ltd., is a Primary Agricultural Credit Co-operative Society. The Income Tax Officer (respondent 1) passed an assessment order (Ext.P1) rejecting the petitioner's claim for deduction under Section 80P of the Income Tax Act. 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 has filed an appeal (Ext.P2) against this assessment order before the Commissioner of Income Tax (Appeals) (respondent 3), which is currently pending. The petitioner relies on the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485.

What did the High Court hold?

The High Court of Kerala noted that the petitioner, Pariyaram Service Co-operative Bank Ltd., has already availed the statutory remedy by filing an appeal (Ext.P2) before the Commissioner of Income Tax (Appeals) (respondent 3). Therefore, the Court disposed of the writ petition by directing the Appellate Authority to consider and pass orders on the appeal at the earliest. The Court also granted interim relief by directing the respondents not to take any coercive steps against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The substantive issue regarding the eligibility for deduction under Section 80P was not decided on merits by the High Court, as the matter was pending before the appellate authority.

What were the issues?

1. Whether the petitioner, a Primary Agricultural Credit Co-operative Society, is eligible for deduction under Section 80P of the Income Tax Act, 1961, when the assessment order claims it has not satisfied the ingredients of such a society as contemplated under the Kerala Co-operative Societies Act. Assessee's Contentions: The petitioner argues that it is a Primary Agricultural Credit Co-operative Society and is entitled to the deduction under Section 80P. It relies on the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485 to support its claim. Revenue's Contentions: The judgment does not record any specific contentions made by the revenue in this writ petition. However, the assessment order (Ext.P1) indicates the revenue's stance that the petitioner failed to satisfy the necessary ingredients for a Primary Agricultural Credit Society.

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 TUE AY, THE 11TH DAY OF APRIL 2023 / 21ST CHAITHRA, 1945 WP(C) NO. 12855 OF 2023 PETITIONER: PARIYARAM SERVICE CO OPERATIVE BANK LTD PARIYARAM P.O, THRISSUR, PIN - 680721 REPRESENTED BY ITS SECRETARY SRI. DENNY M.V.

BY ADVS. K.S.HARIHARAN NAIR RAJATH R NATH HARIMA HARIHARAN G.REMADEVI MOHANA KUMAR B. DHEERAJ SASIDHARAN RESPONDENTS: 1 THE INCOME TAX OFFICER WARD 2(4), RANGE-4, AAYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, THRISSUR, PIN – 680001 2 ASSESSMENT UNIT NEAC, MAYUR BHAWAN, CONNAUGHT LANE, NEW DELHI, PIN – 110001 3 COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, C-BLOCK, 4TH FLOOR, S.P.M CIVIC CENTRE, NEW DELHI, PIN – 110001 SRI. JOSE JOSEPH, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.04.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 12855 OF 2023 2 T.R. RAVI, J. -------------------------------------------- W.P.(C) No.12855 of 2023 -------------------------------------------- Dated this the 11th day of April, 2023 JUDGMENT The petitioner is a Primary Agricultural Credit Co-operative Society registered under the Kerala Co-op

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