KORATTY SERVICE CO-OPERATIVE BANK LIMITED, NO. R 314 vs. THE INCOME TAX OFFICER

WP(C)/12597/2023HC KeralaKLHC01027772202310 April 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What were the facts?

The petitioner, Koratty Service Co-operative Bank Limited, is a Primary Agricultural Credit Co-operative Society. The Income Tax Officer 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 challenged this assessment order by filing an appeal (Ext.P2) before the Commissioner of Income Tax (Appeals), which is pending. The petitioner filed a writ petition before the High Court of Kerala seeking directions for the disposal of the appeal and to restrain coercive steps.

What did the High Court hold?

The High Court of Kerala noted that the petitioner, Koratty Service Co-operative Bank Limited, had already availed the statutory remedy by filing an appeal (Ext.P2) before the Commissioner of Income Tax (Appeals). Therefore, the Court did not delve into the merits of the assessment order or the applicability of Section 80P. The Court's decision was procedural. The writ petition was disposed of by directing the Appellate Authority (3rd respondent) to consider and pass orders on the appeal at the earliest. Additionally, the Court directed that no coercive steps shall be taken against the petitioner pursuant to the assessment order (Ext.P1) until the appeal is disposed of. The specific finding on the validity of the assessment order or the interpretation of Section 80P was left to the appellate authority.

What were the issues?

1. Whether the assessment order rejecting the claim for deduction under Section 80P of the Income Tax Act is valid, considering the petitioner's status as a Primary Agricultural Credit Co-operative Society. Assessee's Contention: The assessee argues that the assessment order is incorrect and relies on the judgment of the Hon'ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485 to support its claim for deduction under Section 80P. Revenue's Contention: The judgment does not record any specific contentions made by the revenue in this writ petition. The assessment order itself indicates the revenue's stance that the petitioner failed to satisfy the ingredients of 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 MONDAY, THE 10TH DAY OF APRIL 2023 / 20TH CHAITHRA, 1945 WP(C) NO. 12597 OF 2023 PETITIONER: KORATTY SERVICE CO-OPERATIVE BANK LIMITED, NO. R 314 KORATTY, THRISSUR,PIN – 680308 REPRESENTED BY ITS SECRETARY SRI. SANIL KUMAR N.G, BY ADVS. K.S.HARIHARAN NAIR HARIMA HARIHARAN RAJATH R NATH G.REMADEVI RESPONDENTS: 1 THE INCOME TAX OFFICER WARD 2(2), AAYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, THRISSSUR, 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 CENTER, NEW DELHI, PIN - 110001 SRI. JOSE JOSEPH, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10.04.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 12597 OF 2023 2 T.R. RAVI, J. -------------------------------------------- W.P.(C).No.12597 of 2023 -------------------------------------------- Dated this the 10th day of April, 2023 JUDGMENT The petitioner is a Primary Agricultural Credit Co-operative Society registered under the Kerala Co-operative Societies Act, 196

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 →