CHENDAMAGALAM SERVICE CO-OPERATIVE BANK LTD. NO.132 vs. ADDITIONAL/ASSISTANT COMMISSIONER OF INCOME TAX

WP(C)/2560/2023HC KeralaKLHC01006272202327 January 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What were the facts?

The petitioner, Chendamangalam Service Co-operative Bank Ltd. No. 132, a Primary Agricultural Credit Co-operative Society, is challenging an assessment order (Ext.P1). This order rejected its claim for deduction under Section 80P of the Income Tax Act. The reason for rejection was the alleged failure to demonstrate that the petitioner satisfied the criteria of a Primary Agricultural Credit Society as defined under the Kerala Co-operative Societies Act. The petitioner relies on the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax. An appeal (Ext.P2) has been filed before the 2nd respondent, the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), and is currently pending.

What did the High Court hold?

The High Court of Kerala, while acknowledging the petitioner's pending appeal before the Appellate Authority, did not decide on the merits of the Section 80P deduction claim. The Court noted that the petitioner had already availed the statutory remedy by filing an appeal. Therefore, the writ petition was disposed of by directing the Appellate Authority to consider and pass orders on the 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 until the appeal is disposed of. The core issue regarding the eligibility for Section 80P deduction was thus left to be decided by 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, 1961, when the assessment order found that it did not satisfy the ingredients of a Primary Agricultural Credit Society as contemplated under the Kerala Co-operative Societies Act. Assessee's Contention: The petitioner argues that the assessment order is erroneous, relying on the Supreme Court's decision in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax to support its claim for deduction under Section 80P. Revenue's Contention: The revenue, through the assessment order, has rejected the deduction on the grounds that the petitioner failed to establish its status as a Primary Agricultural Credit Society as per the relevant state 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 FRIDAY, THE 27TH DAY OF JANUARY 2023 / 7TH MAGHA, 1944 WP(C) NO. 2560 OF 2023 PETITIONER: CHENDAMAGALAM SERVICE CO-OPERATIVE BANK LTD. NO.132 REPRESENTED BY ITS SECRETARY IN CHARGE, CHENDAMAGALAM P.O, ERNAKULAM DISTRICT, PIN – 683512. BY ADVS. M.M.MONAYE M.PAUL VARGHESE K.V.SANOSH ANJANA SUGUNAN RESPONDENTS: 1 ADDITIONAL/ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL STADIUM, DELHI – 110003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE (NFAC) INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, JAWAHARLAL STADIUM, DELHI – 110003. 3 PRINCIPAL COMMISSIONAR OF INCOME TAX, KERALA C.R. BUILDING, I.S. PRESS ROAD, KOCHI - 682018 4 THE INCOME TAX OFFICER WARD - 2, TPS, KAP COMMERCIAL COMPLEX, O/O ADDITIONAL COMMISSIONER OF INCOME TAX ALUVA RANGE, R.S. ROAD, ALUVA – 683101. ADV. JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 2560 OF 2023 2 T.R. RAVI, J

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 80P

All 4,983 judgments and leading authorities on Section 80P →

Recent GST High Court judgments

Search GST case law →