THE MANJOOR SERVICE CO-OPERATIVE BANK LTD NO. K 73, vs. THE NATIONAL FACELESS APPEAL CENTRE,

WP(C)/8026/2023HC KeralaKLHC01018676202308 March 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What were the facts?

The petitioner, The Manjoor Service Co-operative Bank Ltd., a Primary Agricultural Credit Cooperative Society, is challenging an assessment order (Ext.P1) that rejected its 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 relies on the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax to contest the assessment. An appeal (Ext.P2) has been filed by the petitioner and is pending before the first respondent, the National Faceless Appeal Centre. The writ petition has been filed seeking a direction for the early disposal of this appeal and to restrain coercive steps.

What did the High Court hold?

The High Court of Kerala, in its writ jurisdiction, did not decide the merits of the case regarding the eligibility for deduction under Section 80P. Instead, the Court noted that the petitioner had already availed the statutory remedy by filing an appeal (Ext.P2) before the Appellate Authority (1st respondent). Therefore, the writ petition was disposed of by directing the Appellate Authority to consider and pass orders on the appeal 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. The specific finding on the ingredients of a Primary Agricultural Credit Society or the applicability of the Mavilayi judgment was left to be decided by the Appellate Authority.

What were the issues?

1. Whether the petitioner, a Primary Agricultural Credit Cooperative Society, is eligible for deduction under Section 80P of the Income Tax Act, considering the assessment order's finding that it did not satisfy the ingredients of such a society under the Kerala Co-operative Societies Act. Assessee's Contention: The petitioner argues that it is a Primary Agricultural Credit Cooperative 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 to support its claim. Revenue's Contention: The revenue, through the assessment order, rejected the deduction on the basis that the petitioner did not meet the criteria for a Primary Agricultural Credit Society under the relevant state act. No specific arguments from 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 WEDNE AY, THE 8TH DAY OF MARCH 2023 / 17TH PHALGUNA, 1944 WP(C) NO. 8026 OF 2023 PETITIONER: THE MANJOOR SERVICE CO-OPERATIVE BANK LTD NO. K 73, MANJOOR P.O., KURUPPANTHARA, KOTTAYAM DISTRICT, PIN - 686603 REPRESENTED BY ITS SECRETARY. BY ADV O.D.SIVADAS RESPONDENTS: 1 THE NATIONAL FACELESS APPEAL CENTRE, NEW DELHI, PIN – 110001 REPRESENTED BY THE PRINCIPAL CHIEF COMMISSIONER. 2 THE ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, NEW DELHI, PIN - 110001 3 THE INCOME TAX OFFICER WARD NO. 3, KOTTAYAM, PIN - 686001 BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.03.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 8026 OF 2023 2 T.R. RAVI, J. ----------------------------------------- W. P. (C). No.8026 of 2023 -------------------------------------------- Dated this the 8th day of March, 2023 JUDGMENT The petitioner is a Prim

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