THE KODUVAYUR SERVICE CO-OPERATIVE BANK LTD. vs. THE ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER

WP(C)/10355/2023HC KeralaKLHC01023448202324 March 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What were the facts?

The petitioner, The Koduvayur Service Co-operative Bank Ltd., a society registered under the Kerala Co-operative Societies Act, 1969, is challenging an assessment order (Ext.P1). The assessment order rejected the petitioner's claim for deduction under Section 80P of the Income Tax Act. The rejection was based on the ground that the petitioner failed to provide evidence demonstrating it satisfied the ingredients of a Primary Agricultural Credit Society as defined under the Kerala Co-operative Societies Act. The petitioner relies on the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax. The petitioner has filed an appeal (Ext.P2) against the assessment order, which is currently pending before the 2nd respondent, the National Faceless Appeal Centre. This writ petition was filed seeking intervention from the High Court.

What did the High Court hold?

The High Court of Kerala, in its writ jurisdiction, has disposed of the writ petition. The Court noted that the petitioner has already availed the statutory remedy by filing an appeal (Ext.P2) against the assessment order (Ext.P1). Therefore, the Court directed the Appellate Authority (the 2nd respondent) to consider the pending appeal and pass orders thereon at the earliest. Additionally, the Court ordered that no coercive steps shall be taken against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal (Ext.P2). The Court did not decide on the merits of the claim for deduction under Section 80P or the validity of the assessment order itself, as the primary focus was on directing the expeditious disposal of the statutory appeal.

What were the issues?

1. Whether the assessment order rejecting the deduction under Section 80P of the Income Tax Act, on the grounds that the petitioner did not satisfy the ingredients of a Primary Agricultural Credit Society, is valid? Assessee's Contention: The petitioner argues that the assessment order is erroneous and relies on the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax 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, as described in the facts, rejected the deduction for lack of evidence regarding the petitioner's status as 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 FRIDAY, THE 24TH DAY OF MARCH 2023 / 3RD CHAITHRA, 1945 WP(C) NO. 10355 OF 2023 PETITIONER: THE KODUVAYUR SERVICE CO-OPERATIVE BANK LTD. NO. P.756, KODUVAYUR, PALAKKAD , REPRESENTED BY ITS SECRETARY-IN-CHARGE, SUJEESH.K.K, PIN - 678521 BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA RESPONDENTS: 1 THE ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER NATIONAL FACELESS E-ASSESSMENT CENTRE, DELHI, PIN - 110001 2 NATIONAL FACELESS APPEAL CENTRE DELHI , REPRESENTED BY THE COMMISSIONER OF INCOME TAX (APPEALS)., PIN - 110001 OTHER PRESENT: SRI. JOSE JOSEPH, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.03.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 10355 of 2023 2 T.R. RAVI, J. -------------------------------------------- W.P.(C) No.10355 of 2023 -------------------------------------------- Dated this the 24th day of March, 2023 JUDGMENT The petitioner is a Service Co-operative Society registered under the Kerala Co-operative Societies Act, 1969. The petitioner has been assessed for tax as per Ext.P1 order reje

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