INCHAKUNDU SERVICE CO- OPERATIVE BANK LTD vs. INCOME TAX OFFICER

WP(C)/12661/2023HC KeralaKLHC01027910202310 April 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What were the facts?

The petitioner, Inchakundu 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, which is pending before the Commissioner of Income Tax (Appeals) (respondent 3). The petitioner filed this writ petition seeking a direction to the Appellate Authority to consider the appeal expeditiously and also sought a stay on coercive steps pursuant to the assessment order.

What did the High Court hold?

The High Court of Kerala, in this writ petition, did not adjudicate on the merits of the claim for deduction under Section 80P. The Court noted that the petitioner had already availed the statutory remedy by filing an appeal before the Commissioner of Income Tax (Appeals). Therefore, the writ petition was disposed of by directing the Appellate Authority to consider and pass orders on the petitioner's appeal at the earliest. The Court also directed that no coercive steps shall be taken against the petitioner pursuant to the assessment order until the disposal of the appeal. The substantive issue regarding the eligibility for deduction under Section 80P, based on the Supreme Court judgment, was left to be decided by 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 Assessing Officer found that it did not satisfy the ingredients of a Primary Agricultural Credit Society as contemplated under the Kerala Co-operative Societies Act, 1969. Assessee's Contention: The petitioner 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 challenge the assessment order. Revenue's Contention: The revenue, through the Income Tax Officer, rejected the deduction on the grounds stated above. No specific arguments or reliance on authorities by the revenue are recorded in the judgment for this writ petition.

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. 12661 OF 2023 PETITIONER: INCHAKUNDU SERVICE CO- OPERATIVE BANK LTD MUPLIYAM, CHENGALLUR S.O, THRISSUR,PIN - 680312 REPRESENTED BY ITS SECRETARY SMT. K.A JAICY BY ADVS. K.S.HARIHARAN NAIR RAJATH R NATH HARIMA HARIHARAN G.REMADEVI MOHANA KUMAR B. RESPONDENTS: 1 THE INCOME TAX OFFICER WARD 2(2), 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 10.04.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 12661 OF 2023 2 T.R. RAVI, J. -------------------------------------------- W.P.(C).No.12661 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 Soc

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