THE KOTHAKURISSI SERVICE CO-OPERATIVE BANK LTD, F.NO.1049, PALAKKAD, REPRESENTED BY ITS SECRETARY, vs. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER

WP(C)/1729/2023HC KeralaKLHC01004241202319 January 2023Author: HONOURABLE MR. JUSTICE GOPINATH P.4 pages
AI SummaryRemanded

What were the facts?

The petitioner, The Kothakurissi Service Co-operative Bank Ltd., a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969, is challenging an assessment order dated 26.09.2022 for the assessment year 2020-21. The Assessing Officer rejected the petitioner's claim for deduction under Section 80P, stating there was no evidence that the petitioner satisfied the ingredients of a Primary Agricultural Credit Society as per the Kerala Co-operative Societies Act. The petitioner has filed an appeal against this assessment order before the Commissioner of Income Tax (Appeals), the 2nd respondent, arguing that the Supreme Court's judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax governs the situation and renders the assessment incorrect. The High Court considered the writ petition.

What did the High Court hold?

The High Court of Kerala did not decide the merits of the case. Instead, it disposed of the writ petition by directing the Appellate Authority (the 2nd respondent, Commissioner of Income Tax (Appeals)) to consider and pass appropriate orders on the petitioner's pending appeal (Ext.P2) expeditiously. The Court also ordered that no coercive steps shall be initiated against the petitioner pursuant to the assessment order (Ext.P1) until the appeal is disposed of. The primary reasoning for this decision was that the petitioner had already preferred an appeal, which was pending before the appellate authority, making it appropriate for that authority to address the issues raised. The judgment does not provide a finding on the validity of the assessment order or the applicability of Section 80P, as these were matters for the appellate authority to decide.

What were the issues?

1. Whether the assessment order dated 26.09.2022, which rejected the petitioner's claim for deduction under Section 80P of the Income Tax Act, 1961, is valid, considering the petitioner's status as a Primary Agricultural Credit Society. Assessee's Contentions: The petitioner contends that the assessment order is incorrect because the Supreme Court's judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax governs the field. This judgment, it is argued, supports the petitioner's claim for deduction under Section 80P. Revenue's Contentions: The judgment does not record any specific contentions made by the revenue in response to the writ petition. The assessment order itself rejected the deduction 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.

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. THUR AY, THE 19TH DAY OF JANUARY 2023 / 29TH POUSHA, 1944 WP(C) NO. 1729 OF 2023 PETITIONER/S: THE KOTHAKURISSI SERVICE CO-OPERATIVE BANK LTD, F.NO.1049, PALAKKAD, REPRESENTED BY ITS SECRETARY, GEETHA A. AGED 54 YEARS PANAMANNA, OTTAPALAM, PALAKKAD, PIN - 679501 BY ADV ALAN PRIYADARSHI DEV RESPONDENT/S: 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, E- RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI, PIN - 110003 2 THE COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, JAWAHARLAL NEHRU STADIUM, NEW DELHI, PIN - 110003 ADV. JOSE JOSEPH (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 1729 OF 2023 2 JUDGMENT Petitioner is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. Ext.P1 order of assessment was issued against the petitioner on 26.09.2022, fo

The order continues below.

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