BHARANIKKAVU SERVICE CO OPERATIVE BANK LTD vs. INCOME TAX OFFICER

WP(C)/765/2023HC KeralaKLHC01001860202311 January 2023Author: HONOURABLE MR. JUSTICE GOPINATH P.4 pages
AI SummaryRemanded

What were the facts?

The petitioner, Bharanikavu Service Co-operative Bank Ltd., is a Primary Agricultural Credit Society. The Assessing Officer (AO) passed an assessment order on December 29, 2019, rejecting the petitioner's claim for deduction under Section 80P. The AO's reasoning was that the petitioner did not satisfy the ingredients of a Primary Agricultural Credit Society as defined under the Kerala Co-operative Societies Act. The petitioner challenged this assessment order before the Commissioner of Income Tax (Appeals) (CIT(A)), arguing that the Supreme Court's judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax governs the field and renders the assessment incorrect. The appeal is currently pending before the CIT(A). The petitioner filed a writ petition before the High Court of Kerala seeking a time-bound disposal of their appeal.

What did the High Court hold?

The High Court of Kerala did not decide the merits of the case. Instead, it directed the Appellate Authority (2nd respondent, CIT(A)) to consider and pass appropriate orders on the appeal (Ext.P3) expeditiously. The Court found it fit to dispose of the writ petition by directing the appellate authority to hear the pending appeal. The reasoning was that the appeal was already preferred and was pending consideration. The operative direction was to dispose of the appeal in a time-bound manner. Additionally, the Court ordered that no coercive steps shall be initiated against the petitioner pursuant to the assessment order (Ext.P1) and demand notice (Ext.P2) until the disposal of the appeal. No issue was expressly left undecided, as the Court chose to direct the appellate authority to decide the substantive issues.

What were the issues?

1. Whether the assessment order dated 29.12.2019, which rejected the petitioner's claim for deduction under Section 80P, is legally sustainable, considering the judgment of the Supreme Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax? Assessee's contentions: The assessee argues that the assessment order is incorrect because the Supreme Court's decision in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax governs the issue and supports their claim for deduction under Section 80P. They contend that this precedent renders the AO's rejection of their claim erroneous. Revenue's contentions: The judgment does not record any specific contentions made by the revenue in this writ petition. The revenue's position would have been presented before the AO and the CIT(A).

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. WEDNE AY, THE 11TH DAY OF JANUARY 2023 / 21ST POUSHA, 1944 WP(C) NO. 765 OF 2023 PETITIONER/S: BHARANIKKAVU SERVICE CO OPERATIVE BANK LTD BHARANIKAVU, PALLICKAL P.O MAVELIKKARA, ALAPPUZHA, REPRESENTED BY ITS SECRETARY - JAYAPRAKASH K S, PIN - 690503 BY ADVS. R.JAIKRISHNA NARAYANI HARIKRISHNAN C.S.ARUN SHANKAR ANISH P. RESPONDENT/S: 1 INCOME TAX OFFICER WARD 1 AND TPS, INCOME TAX OFFICE, OFFICE OF ADDL CIT, THIRUVALLA RANGE, T K ROAD, THIRUVALLA, PATHANAMTHITTA, PIN - 689101 2 COMMISSIONER INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTER (NFAC) INCOME TAX DEPARTMENT NORTH BLOCK, NEW DELHI, PIN - 110001 ADV. JOSE JOSEPH (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 765 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 29.12.2019. In the assessment order, petitioner's claim for deduction under Section 80P was rejected on the ground that t

The order continues below.

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