KOPPAM SERVICE COOPERATIVE BANK LTD., PALAKKAD, REPRESENTED BY ITS SECRETARY, UNNIKRISHNAN T.P . vs. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, ASSESSMENT UNIT,

WP(C)/1893/2023HC KeralaKLHC01004673202320 January 2023Author: HONOURABLE MR. JUSTICE GOPINATH P.3 pages
AI SummaryRemanded

What were the facts?

The petitioner, Koppam Service Co-operative Bank Ltd., is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. The Assessing Officer passed an assessment order (Ext.P1) rejecting the petitioner's claim for deduction under Section 80P. The reason for rejection was the alleged lack of evidence demonstrating that the petitioner satisfied the criteria of a Primary Agricultural Credit Society as defined by the Kerala Co-operative Societies Act. The petitioner challenged this assessment order before the Commissioner of Income Tax (Appeals) (the 2nd respondent) by filing an appeal (Ext.P2) and a stay petition (Ext.P3). The petitioner contended that the Supreme Court's judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485 now governs the issue and renders the assessment incorrect.

What did the High Court hold?

The High Court of Kerala did not decide the merits of the appeal. Instead, it directed the 2nd respondent, the Commissioner of Income Tax (Appeals), to consider and pass appropriate orders on the petitioner's appeal (Ext.P2) and stay petition (Ext.P3) expeditiously, at any rate, within a period of 3 months from the date of receipt of a certified copy of the judgment. Furthermore, the Court ordered that no coercive steps shall be initiated against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The Court found it appropriate to dispose of the writ petition by directing the 2nd respondent to consider the pending appeal in a time-bound manner.

What were the issues?

1. Whether the assessment order rejecting the petitioner's claim for deduction under Section 80P is valid, considering the petitioner's status as a Primary Agricultural Credit Society under the Kerala Co-operative Societies Act, 1969. Assessee's Contention: The petitioner argues that the assessment is incorrect and that the Supreme Court's judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485 governs the field, implying that their claim for deduction under Section 80P should be allowed. Revenue's Contention: The revenue, through the Assessing Officer, rejected the deduction on the grounds that the petitioner failed to provide evidence to satisfy the ingredients of a Primary Agricultural Credit Society as contemplated under the Kerala Co-operative Societies 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 GOPINATH P. FRIDAY, THE 20TH DAY OF JANUARY 2023 / 30TH POUSHA, 1944 WP(C) NO. 1893 OF 2023 PETITIONER: KOPPAM SERVICE COOPERATIVE BANK LTD., PALAKKAD, REPRESENTED BY ITS SECRETARY, UNNIKRISHNAN T.P . AGED 56 YEARS NO.F.1205, PULASSERI PO, KOPPAM, PATTAMBI, PALAKKAD REPRESENTED BY ITS SECRETARY, UNNIKRISHNAN T.P ., PIN – 679307. BY ADV ALAN PRIYADARSHI DEV RESPONDENTS: 1 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, ASSESSMENT UNIT, DELHI ASSESSMENT UNIT, NATIONAL E-ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI, PIN - 110003 2 THE COMMISSIONER OF INCOME TAX (APPEALS), DELHI NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, JAWAHARLAL STADIUM, DELHI, PIN - 110003 OTHER PRESENT: ADV. JOSE JOSEPH (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

W.P (C) No.1893/2023 -2- J U D G M E N T Petitioner is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societi

The order continues below.

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