THE ANICKAD REGIONAL FARMER’S SERVICE CO-OPERATIVE BANK LIMITED vs. THE NATIONAL FACELESS APPEAL CENTRE,

WP(C)/6222/2023HC KeralaKLHC01014702202323 February 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What were the facts?

The petitioner, The Anickad Regional Farmer's Service Co-operative Bank Limited, is a Primary Agricultural Credit Society. An assessment order (Ext.P1) was passed against the petitioner, rejecting its claim for deduction under Section 80P. The reason for rejection was the alleged lack of evidence that the petitioner satisfied the ingredients of a Primary Agricultural Credit Society as per the Kerala Co-operative Societies Act. The petitioner challenged this assessment order by filing an appeal (Ext.P2) before the 1st respondent, the National Faceless Appeal Centre, New Delhi. The petitioner relied on the Supreme Court judgment in Mavilayi Service Cooperative Bank Ltd. v. Commissioner of Income Tax to argue that the assessment itself was incorrect. The writ petition was filed seeking a direction for the timely disposal of the pending appeal.

What did the High Court hold?

The High Court of Kerala did not decide the merits of the assessment or the appeal. Instead, the Court deemed it fit to dispose of the writ petition by directing the 1st respondent, the National Faceless Appeal Centre, to consider and pass appropriate orders on the petitioner's pending appeal (Ext.P2) in a time-bound manner. The Court directed the 1st respondent to dispose of the appeal expeditiously, within a period of 2 months from the date of receipt of a copy of the judgment. Furthermore, the Court ordered that no coercive steps shall be initiated against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The specific findings on the grounds for rejection of the Section 80P deduction were not addressed by the High Court.

What were the issues?

1. Whether the assessment order rejecting the petitioner's claim for deduction under Section 80P is legally sustainable, considering the petitioner's status as a Primary Agricultural Credit Society and the reliance placed on the Supreme Court judgment in Mavilayi Service Cooperative Bank Ltd. v. Commissioner of Income Tax. Assessee's Contention: The petitioner argued that the assessment itself was incorrect, relying on the Supreme Court judgment in Mavilayi Service Cooperative Bank Ltd. v. Commissioner of Income Tax. The petitioner contended that as a Primary Agricultural Credit Society, it is entitled to the 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, however, rejected the deduction on the ground that the petitioner did not satisfy the ingredients of a Primary Agricultural Credit Society as contemplated under the Kerala Co-operative Societies Act.

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 THUR AY, THE 23RD DAY OF FEBRUARY 2023 / 4TH PHALGUNA, 1944 WP(C) NO. 6222 OF 2023 PETITIONER: 1 THE ANICKAD REGIONAL FARMER'S SERVICE CO-OPERATIVE BANK LIMITED AGED 55 YEARS NO.3867, PALLICKATHODU, ANICKAD P.O., KOTTAYAM, PIN – 686503 REPRESENTED BY ITS THE MANAGING DIRECTOR, 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, AYKAR BHAVAN, KOTTAYM,, PIN - 686001 BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.02.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WPC No.6222 of 2023 2 T.R. RAVI, J. ------------------------------------ W.P.(C.) No.6222 of 2023 ------------------------------------ Dated this the 23rd day of February, 2023 JUDGMENT Petitioner is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. Ext.P1

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