AMBALAPARA SERVICE CO-OPERATIVE BANK vs. ADDITIONAL /JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER,

WP(C)/2265/2023HC KeralaKLHC01005556202324 January 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What were the facts?

The petitioner, Ambalapara Service Co-operative Bank, a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969, is challenging an assessment order (Ext.P1). This order rejected the bank's claim for deduction under Section 80P of the Income Tax Act. The Assessing Officer's reasoning was that the petitioner failed to provide evidence of satisfying the ingredients of a Primary Agricultural Credit Society as defined by the Kerala Co-operative Societies Act. The petitioner has filed an appeal (Ext.P2) against this assessment order, which is currently pending before the 2nd respondent, the Commissioner of Income Tax (Appeals). The petitioner has approached the High Court of Kerala by way of a writ petition.

What did the High Court hold?

The High Court of Kerala noted that the petitioner has already availed a statutory remedy by filing an appeal against the assessment order. Therefore, the Court disposed of the writ petition by directing the Appellate Authority (the 2nd respondent) to consider the appeal (Ext.P2) and pass orders thereon at the earliest. The Court also granted interim relief to the petitioner, directing that no coercive steps shall be taken 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 deduction claim under Section 80P.

What were the issues?

1. Whether the petitioner, a Primary Agricultural Credit Society, is entitled to claim deduction under Section 80P of the Income Tax Act, 1961, when the Assessing Officer found that it did not satisfy the ingredients of a Primary Agricultural Credit Society as contemplated under 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; 2021 (1) KLT 485 to challenge the assessment order. 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 on the grounds stated in the facts.

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 24TH DAY OF JANUARY 2023 / 4TH MAGHA, 1944 WP(C) NO. 2265 OF 2023 PETITIONER: 1 AMBALAPARA SERVICE CO-OPERATIVE BANK AGED 53 YEARS OTTAPALAM, PALAKKAD, PIN - 679512 REPRESENTED BY ITS SECRETARY, MOHAN KUMAR M. BY ADV ALAN PRIYADARSHI DEV RESPONDENTS: 1 ADDITIONAL /JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER, ASSESSMENT UNIT, NATIONAL E-ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL STADIUM, DELHI - 110 003 2 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, JAWAHARLAL STADIUM, DELHI - 110 003. SRI. JOSE JOSEPH, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WPC No.2265 of 2023 2 T.R. RAVI, J. ----------------------------------------- W.P.(C.) No.2265 of 2023 ----------------------------------------- Dated this the 24th day of January, 2023 JUDGMENT The petitioner is a Primary Agricultural Credit Society registered under the Kerala Co-opera

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