UDAYANAPURAM SERVICE CO-OPERATIVE BANK LTD vs. INCOME TAX OFFICER

The only question that is involved is whether the petitioner’s Society is entitled to the benefit of Section 80P.

The petitioner has approached this Court contending that the said question has not been gone into by the assessing officer and that, it is a clear violation of the judgment of the Hon'ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. and others v. Commissioner of Income Tax and another; 431 ITR 1. The petitioner has along with I.A. No.1 of 2023 produced the return filed by the petitioner wherein, a specific claim has been made for deduction under Section 80P of the Income Tax Act. The consideration of the assessment order is available in paragraph 3 of the order which says that it is evident from the name of the assessee that the assessee is a Co-operative Bank. Other than that, the question whether the petitioner is a Primary Agricultural Credit Society or a Primary Co-operative Agricultural and Rural Development Bank has not been specifically gone into. The justification stated is that even though several notices were issued to the petitioner, they did not respond. This Court has in the judgment in W.A. No.753/2021 considered an assessment order in which the question had not been specifically answered and set aside the assessment order and directed reconsideration.

After hearing the counsel on either side, I am of the view that the petitioner ought to be given another chance to put forward their case before the assessing officer. In the result, the writ petition is allowed. Exts.P1 and P2 are set aside. The 2nd respondent is directed to pass fresh assessment order with notice to the petitioner in accordance with law. The petitioner shall place before the authority the necessary documents which are required to show that they are entitled to come within the frame work of Section 80P. T.R.RAVI JUDGE SKP/06-03