Kadannamanna Service Co-operative Bank vs. THE NATIONAL FACELESS APPEAL CENTRE,

WP(C)/3807/2023HC KeralaKLHC01009175202306 February 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What were the facts?

The petitioner, Kadannimanna Service Co-operative Bank Limited, a Primary Agricultural Credit Cooperative Society, is challenging an assessment order (Ext.P1) passed by the revenue. The assessment order rejected the petitioner's claim for deduction under Section 80P of the Income Tax Act. The ground for rejection was the alleged lack of evidence to establish that the petitioner satisfied the ingredients of a Primary Agricultural Credit Society as defined under the Kerala Co-operative Societies Act. The petitioner has filed an appeal (Ext.P2) against this assessment order, which is currently pending before the National Faceless Appeal Centre, New Delhi (1st respondent). The petitioner has approached the High Court of Kerala via a writ petition seeking a direction for the expeditious disposal of their appeal.

What did the High Court hold?

The High Court of Kerala, in its writ jurisdiction, did not decide the merits of the assessment order or the appeal. Instead, the Court acknowledged that the petitioner had already availed the statutory remedy by filing an appeal (Ext.P2) against the assessment order (Ext.P1). Consequently, the writ petition was disposed of by directing the Appellate Authority (1st respondent) to consider and pass orders on the pending appeal at the earliest. Furthermore, the Court granted interim relief to the petitioner by directing that no coercive steps shall be taken against them pursuant to the assessment order (Ext.P1) until the disposal of their appeal (Ext.P2). The specific finding on the legality of the assessment order or the deductibility under Section 80P was expressly left undecided by the High Court in this proceeding.

What were the issues?

1. Whether the assessment order rejecting the claim for 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 as contemplated under the Kerala Co-operative Societies Act, is sustainable? The Assessee's Contention: The petitioner argues that the assessment order is erroneous and relies on the judgment of the Hon'ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax (2021 (1) KLT 485) to challenge the assessment. The petitioner has already availed the statutory remedy by filing an appeal against the assessment order. The Revenue's Contention: The judgment does not record any specific contentions made by the revenue in this writ petition. However, the assessment order itself indicates the revenue's stance that the petitioner failed to provide evidence to satisfy the criteria for 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 MONDAY, THE 6TH DAY OF FEBRUARY 2023 / 17TH MAGHA, 1944 WP(C) NO. 3807 OF 2023 PETITIONER: KADANNAMANNA SERVICE CO-OPERATIVE BANK LIMITED NO. 10561, KADANNAMANNA.P.O., MANAKADA VIA, MALAPPURAM, PIN – 679324 REPRESENTED BY ITS SECRETARY. BY ADV O.D.SIVADAS RESPONDENTS: 1 THE NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, 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, INCOME TAX DEPARTMENT, NEW DELHI, PIN - 110001 3 THE INCOME TAX OFFICER, AYKAR BHAVAN, WARD 4, TIRUR, MALAPPURAM DISTRICT, PIN - 676001 BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA SRI. CHRISTOPHER ABRAHAM, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.02.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 3807 OF 2023 2 T.R. RAVI, J. -------------------------------------------- W. P. (C). No.3807 of 2023 ---------------------------------------

The order continues below.

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