THE NAGALASSERY SERVICE CO-OPERATIVE BANK LTD. vs. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOMEE TAX/INCOME TAX OFFICER

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WP(C)/26009/2024HC KeralaKLHC01124050202422 July 2024Bench: HONOURABLE MR. JUSTICE GOPINATH P.4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court did not decide the merits of the case. Instead, it acknowledged that the petitioner had already preferred an appeal (Ext.P2) before the 2nd respondent (Appellate Authority) which was pending consideration. Therefore, the Court deemed it appropriate to dispose of the writ petition by directing the Appellate Authority to consider the appeal in a time-bound manner. The Court directed the 2nd respondent to consider and pass appropriate orders on Ext.P2 expeditiously. 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 issue regarding the validity of the assessment order and the applicability of the Mavilayi Service Co-operative Bank Ltd. judgment was left to be decided by the Appellate Authority.

What were the facts?

The petitioner, The Nagalassery Service Co-operative Bank Ltd., a Primary Agricultural Credit Society, received an assessment order dated March 16, 2024. 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 defined by the Kerala Co-operative Societies Act. The petitioner challenged this assessment order before the Joint Commissioner (Appeals)/Commissioner of Income Tax (Appeals). The petitioner argued 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 appellate authority.

What were the issues?

1. Whether the assessment order dated March 16, 2024, rejecting the petitioner's claim for deduction under Section 80P of the Income Tax Act, 1961, is legally sustainable, 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 [2021 (1) KLT 485] governs the issue and supports their claim for deduction. Revenue's Contentions: The judgment does not record any specific contentions made by the revenue in response to the petitioner's arguments before the High Court. The assessment order itself rejected the deduction on the ground of insufficient evidence regarding the petitioner's status as 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. MONDAY, THE 22ND DAY OF JULY 2024 / 31ST ASHADHA, 1946 WP(C) NO. 26009 OF 2024 PETITIONER: THE NAGALASSERY SERVICE CO-OPERATIVE BANK LTD. NO. P 541, KOOTTANAD, PATTAMBI, PALAKKAD, REPRESENTED BY ITS SECRETARY, KRISHNAKUMAR.N., PIN – 679 533. BY ADVS. K.KRISHNA ACHYUTH MENON RESPONDENTS: 1 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, DELHI, PIN – 110 001. 2 THE JOINT COMMISSIONER (APPEALS)/COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, DELHI, PIN – 110 001. BY ADV. P R AJITHKUMAR (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.07.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

W.P.(C) No.26009/2024 -: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 16.03.2024. In the assessment order, petitioner's claim for deduction under Section 80P was rejected on the ground that there was no evidence to show that petitioner satisfied the ingredients of the Primary Agricultural Credit Society as contemplated under the Kerala Co-operative Societies Act. 2. While assailing the assessment order before the 2nd respondent, petitioner has sought to canvas that the judgment of the Supreme Court in Mavilayi Service Co- operative Bank Ltd. v. Commissioner of Income Tax [2021 (1) KLT 485] now governs the field thereby rendering the assessment itself as incorrect. 3. Since the petitioner has already preferred an appeal as Ext.P2 and the same is pending consideration before the

W.P.(C) No.26009/2024 -:3:- 2nd respondent, I deem it fit that this writ petition be disposed of directing the Appellate Authority to consider the appeal in a time bound manner. 4. Accordingly, there will be a direction to the 2nd respondent to consider and pass appropriate orders on Ext.P2, as expeditiously as possible. 5. Till the disposal of the appeal, no coercive steps shall be initiated against the petitioner pursuant to Ext.P1 assessment order. The writ petition is disposed of as above.

Sd/- GOPINATH P.

JUDGE ats

W.P.(C) No.26009/2024 -:4:- APPENDIX OF WP(C) 26009/2024 PETITIONER’S EXHIBITS Exhibit P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2022-23 DTD. 16-03-2024. Exhibit P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 15-04-2024. Exhibit P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 15-04-2024. Exhibit P4 COPY OF JUDGMENT IN WPC NO. 29879/23 OF THIS HON'BLE COURT DTD. 20-09-2023.

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