THE PERINTHALMANNA CO-OPERATIVE AGRIOULTURAL & RURAL DEVELOPMENT BANK LTD. NO.P505 vs. THE INCOME TAX OFFICER

WP(C)/3696/2023HC KeralaKLHC01008921202303 February 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What were the facts?

The petitioner, The Perinthalmanna Co-operative Agricultural & Rural Development Bank Ltd. No.P505, is a society registered under the Kerala Co-operative Societies Act, 1969. The Income Tax Officer passed an assessment order (Ext.P1) rejecting the petitioner's 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 contemplated under the Kerala Co-operative Societies Act. The petitioner challenged this assessment order by filing an appeal (Ext.P2) before the Commissioner of Income-Tax (Appeals), which is currently pending. The petitioner also filed a writ petition before the High Court of Kerala.

What did the High Court hold?

The High Court of Kerala, while acknowledging that the petitioner has already availed a statutory remedy by filing an appeal (Ext.P2) before the Commissioner of Income-Tax (Appeals), disposed of the writ petition. The Court directed the Appellate Authority to consider and pass orders on the appeal at the earliest. Furthermore, the Court ordered that the respondents (Income Tax Officer and Commissioner of Income-Tax (Appeals)) shall not take any coercive steps against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The substantive issue regarding the eligibility for deduction under Section 80P was not decided on merits by the High Court in this writ petition, as the focus was on directing the expeditious disposal of the pending appeal.

What were the issues?

1. Whether the petitioner, a Co-operative Society, is eligible for deduction under Section 80P of the Income Tax Act, 1961, when the assessing officer rejected the claim on the grounds that it did not satisfy the ingredients of a Primary Agricultural Credit Society as per the Kerala Co-operative Societies Act, 1969. Assessee's Contention: The petitioner relies on the judgment of the Hon'ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax reported in (2021 (1) KLT 485) to challenge the assessment order. The petitioner has availed the statutory remedy of appeal. Revenue's Contention: The judgment does not record any specific contentions made by the revenue in this writ petition. The assessment order itself rejected the deduction under Section 80P.

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 FRIDAY, THE 3RD DAY OF FEBRUARY 2023 / 14TH MAGHA, 1944 WP(C) NO. 3696 OF 2023 PETITIONER: THE PERINTHALMANNA CO-OPERATIVE AGRIOULTURAL & RURAL DEVELOPMENT BANK LTD. NO.P505 PERINTHALMANNA, MALAPPURAM, PIN – 679322 REPRESENTED BY ITS SECRETARY. BY ADVS. V.KRISHNA MENON E.K.MADHAVAN P.VIJAYAMMA J.SURYA PRINSUN PHILIP RESPONDENTS: 1 THE INCOME TAX OFFICER WARD (2), TIRUR, PIN - 676001 2 THE COMMISSIONER OF INCOME-TAX (APPEALS) AAYAKAR BHAVAN, KOZHIKODE, PIN - 673001 SRI. JOSE JOSEPH, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.02.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 3696 OF 2023 2 T.R. RAVI, J. -------------------------------------------- W. P. (C). No.3696 of 2023 -------------------------------------------- Dated this the 3rd day of February, 2023 JUDGMENT The petitioner is a 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 deduction made under Se

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