The Kallara Village Service Co-operative Bank vs. THE NATIONAL FACELESS APPEAL CENTRE,

WP(C)/7797/2023HC KeralaKLHC01018259202307 March 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What were the facts?

The petitioner, The Kallara Village Service Co-operative Bank Limited, a Primary Agricultural Credit Co-operative Society, was issued an assessment order (Ext.P1) rejecting 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 challenged this assessment order, relying 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) before the National Faceless Appeal Centre, which is pending. The present writ petition was filed seeking directions regarding this appeal.

What did the High Court hold?

The High Court of Kerala did not decide on the merits of the assessment order or the eligibility for deduction under Section 80P. Instead, it noted that the petitioner had already availed the statutory remedy by filing an appeal (Ext.P2) before the appellate authority. 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 directed that no coercive steps would be taken against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The issue of the validity of the assessment order and the eligibility for Section 80P deduction was therefore left undecided by the High Court, as it was pending before the appellate authority.

What were the issues?

1. Whether the assessment order rejecting the deduction under Section 80P of the Income Tax Act is valid, considering the petitioner's status as a Primary Agricultural Credit Co-operative Society and the Supreme Court's ruling in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax. Assessee's Contention: The assessee argues that the assessment order is erroneous as it wrongly denied the deduction under Section 80P. They rely on the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax to support their claim that they are eligible for the deduction. Revenue's Contention: The judgment does not record any specific contentions from the revenue regarding the merits of the assessment order. The revenue's role in this proceeding is in response to the writ petition filed by the assessee.

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 7TH DAY OF MARCH 2023 / 16TH PHALGUNA, 1944 WP(C) NO. 7797 OF 2023 NAME AND ADDRESS OF THE PETITIONER: THE KALLARA VILLAGE SERVICE CO-OPERATIVE BANK LIMITED NO.3123, KALLARA, KOTTAYAM DISTRICT, REPRESENTED BY ITS SECRETARY. BY ADV O.D.SIVADAS NAME AND ADDRESS OF THE RESPONDENTS: 1 THE NATIONAL FACELESS APPEAL CENTRE, NEW DELHI, REPRESENTED BY THE PRINCIPAL CHIEF COMMISSIONER,PIN – 110001. 2 THE ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, NEW DELHI - 110 001. 3 THE INCOME TAX OFFICER, WARD NO. 2, KOTTAYAM., PIN – 686001. BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07.03.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 7797 OF 2023 2 T.R. RAVI, J. -------------------------------------------- W.P.(C) No.7797 of 2023 -------------------------------------------- Dated this the 07th day of March, 2023 JUDGMENT The petitioner is a Primary Agricultural Credit Co-operative Society registered under the Kerala Co-operative Societies Act, 1

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