THE THAVANOOR SERVICE CO-OPERATIVE BANK LIMITED vs. THE NATIONAL FACELESS APPEAL CENTRE,

WP(C)/40/2023HC KeralaKLHC01000134202312 January 2023Author: HONOURABLE MR. JUSTICE GOPINATH P.4 pages
AI SummaryRemanded

What were the facts?

The petitioner, The Thavanoor Service Co-operative Bank Limited, a Primary Agricultural Credit Society, is challenging an assessment order (Ext.P1) issued by the revenue. The assessment order rejected the petitioner's claim for deduction under Section 80P of the Income Tax Act, 1961, citing a lack of evidence that the petitioner met the criteria of a Primary Agricultural Credit Society under the Kerala Co-operative Societies Act, 1969. The petitioner contends that a Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485 now governs the field and renders the assessment incorrect. The petitioner has already filed an appeal (Ext.P3) before the National Faceless Appeal Centre, which is pending.

What did the High Court hold?

The High Court did not decide the merits of the appeal. Instead, it directed the 1st respondent, the National Faceless Appeal Centre, to consider and pass appropriate orders on the petitioner's pending appeal (Ext.P3) expeditiously, within a period of 2 months from the date of receipt of a copy of the judgment. The Court also ordered that no coercive steps shall be initiated against the petitioner pursuant to the assessment order (Ext.P1) and another related document (Ext.P2) until the disposal of the appeal. The core reasoning for this decision was the pendency of the appeal before the appropriate appellate authority, making the writ petition premature for a decision on the merits of the assessment.

What were the issues?

1. Whether the assessment order rejecting the claim for deduction under Section 80P is incorrect in light of the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485. (Question of law) Assessee's Contentions: The petitioner argues that the assessment order is incorrect because the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485 governs the field and supports their claim for deduction under Section 80P. The petitioner relies on this Supreme Court judgment. Revenue's Contentions: The judgment does not record any specific contentions made by the revenue in this writ petition. However, the assessment order itself indicates the revenue's stance was that the petitioner failed to provide evidence satisfying the ingredients of a Primary Agricultural Credit Society.

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 12TH DAY OF JANUARY 2023 / 22ND POUSHA, 1944 WP(C) NO. 40 OF 2023 PETITIONER: 1 THE THAVANOOR SERVICE CO-OPERATIVE BANK LIMITED AGED 42 YEARS THAVANOOR, MALAPPURAM DISTRICT, PIN - 679573 REPRESENTED BY ITS SECRETARY. BY ADV O.D.SIVADAS RESPONDENTS: 1 THE NATIONAL FACELESS APPEAL CENTRE, NEW DELHI, 110 001 REPRESENTED BY THE PRINCIPAL CHIEF COMMISSIONER 2 THE ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, NEW DELHI , PIN - 110001 3 THE INCOME TAX OFFICER, WARD 4, TIRUR, MALAPPURAM DISTRICT, PIN - 676001 BY ADV. CHRISTOPHER ABRAHAM, STANDING COUNSEL ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WPC No.40 of 2023 2 JUDGMENT Dated this the 12th day of January, 2023 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. In the assessment order, petitioner's claim for deducti

The order continues below.

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