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

WP(C)/4794/2023HC KeralaKLHC01011528202314 February 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What were the facts?

The petitioner, The Kongad Service Co-operative Bank Ltd., a Primary Agricultural Credit Co-operative Society, filed a writ petition before the High Court of Kerala. The petitioner was issued an assessment order (Ext.P1) rejecting its claim for deduction under Section 80P of the Income Tax Act. The Assessing Officer's basis for rejection was the alleged lack of evidence demonstrating the petitioner's satisfaction of the ingredients of a Primary Agricultural Credit Society as defined under the Kerala Co-operative Societies Act. The petitioner challenged this assessment order by filing an appeal (Ext.P2) before the National Faceless Appeal Centre, Delhi, which was pending. The petitioner relied on the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485.

What did the High Court hold?

The High Court of Kerala, in its judgment dated February 14, 2023, disposed of the writ petition. The Court noted that the petitioner had already availed the statutory remedy by filing an appeal (Ext.P2) before the Appellate Authority. Therefore, the Court directed the Appellate Authority to consider and pass orders on the pending appeal at the earliest. The Court also granted interim relief by directing the respondents not to take any coercive steps against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The Court did not decide the merits of the Section 80P deduction claim itself, as the matter was pending before 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, considering the Assessing Officer's finding that it failed to provide evidence of satisfying the ingredients of such a society as per the Kerala Co-operative Societies Act. Assessee's Contentions: The petitioner argued that the assessment order was erroneous and relied on the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485 to support its claim for deduction under Section 80P. Revenue's Contentions: The judgment does not record any specific contentions made by the revenue in response to the writ petition. However, the assessment order itself indicates the revenue's stance that the petitioner did not satisfy the conditions for the deduction.

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 14TH DAY OF FEBRUARY 2023 / 25TH MAGHA, 1944 WP(C) NO. 4794 OF 2023 PETITIONER: THE KONGAD SERVICE CO-OPERATIVE BANK LTD. NO.-P 538, KONGAD POST, PALAKKAD - 678631, REPRESENTED BY ITS SECRETARY, JAYAKRISHNAN.K.A. 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 E-ASSESSMENT CENTRE, DELHI – 110001. 2 NATIONAL FACELESS APPEAL CENTRE, DELHI - 110001, REPRESENTED BY THE COMMISSIONER OF INCOME TAX (APPEALS). SRI. JOSE JOSEPH, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.02.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 4794 OF 2023 2 T.R. RAVI, J. -------------------------------------------- W.P.(C) No.4794 of 2023 -------------------------------------------- Dated this the 14th day of February, 2023 JUDGMENT The petitioner is a Primary Agricultural Credit Co-operative Society registered under the Kerala Co-operative Societies Act, 1969. The petitioner has been assessed for tax as per Ext.P1 order rejecting the claim for deducti

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