M/S. AKATHETHARA SERVICE CO-OPERATIVE BANK LTD. vs. THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER

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WP(C)/3800/2023HC KeralaKLHC01009159202306 February 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala did not decide on the merits of the assessment order or the appeal. Instead, the Court found it appropriate to dispose of the writ petition by directing the appellate authority (the 2nd respondent) to consider and pass appropriate orders on the pending appeal (Ext.P2) expeditiously. The Court directed the 2nd respondent to dispose of the appeal within a period of 2 months from the date of receipt of a copy of the judgment. 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 primary finding is that the appeal needs to be heard and decided by the appellate authority.

What were the facts?

The petitioner, M/s. Akatethara Service Co-operative Bank Ltd., a Primary Agricultural Credit Society, received an assessment order (Ext.P1) from the respondent revenue. The assessment order rejected the petitioner's claim for deduction under Section 80P. The reason cited was the lack of evidence demonstrating that the petitioner met the criteria of a Primary Agricultural Credit Society as defined by the Kerala Co-operative Societies Act. The petitioner challenged this assessment order by filing an appeal (Ext.P2) before the second respondent, the National Faceless Appeal Centre, Delhi. The petitioner relied on the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax to argue that the assessment itself was incorrect. The present writ petition was filed before the High Court of Kerala seeking a direction for the expeditious disposal of the pending appeal.

What were the issues?

1. Whether the assessment order rejecting the deduction under Section 80P on the ground of insufficient evidence regarding the petitioner's status as a Primary Agricultural Credit Society is correct? (Question of law and fact, concerning Section 80P of the Income Tax Act, 1961). Assessee's contentions: The petitioner argued that the assessment itself was incorrect, relying on the Supreme Court's judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax. The petitioner had already filed an appeal against the assessment order. Revenue's contentions: The judgment does not record any specific contentions from the revenue in this writ petition. The assessment order itself rejected the deduction, stating there was no evidence to show the petitioner satisfied 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

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI MONDAY, THE 6TH DAY OF FEBRUARY 2023 / 17TH MAGHA, 1944 WP(C) NO. 3800 OF 2023 PETITIONER: 1 M/S. AKATHETHARA SERVICE CO-OPERATIVE BANK LTD. F-1514, AKATHETHARA POST, PALAKKAD, PIN - 678008 REPRESENTED BY ITS SECRETARY, SUBHA VARMA P. BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA RESPONDENTS: 1 THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER NATIONAL FACELESS ASSESSMENT CENTRE DELHI, PIN - 678008 2 NATIONAL FACELESS APPEAL CENTRE, DELHI, PIN - 110001 REPRESENTED BY THE COMMISSIONER OF INCOME TAX (APPEALS) SRI. JOSE JOSEPH, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.02.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.3800 of 2023 2 T.R. RAVI, J. ------------------------------------ W.P.(C.) No.3800 of 2023 ------------------------------------ Dated this the 06th day of February, 2023

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. 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 the 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 relied on the judgment of the Supreme Court in Mavilayi Service Co- operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485 to submit that the assessment itself is incorrect.

3.

Since the petitioner has already preferred an appeal as Ext.P2 and the same is pending consideration before the 2nd respondent, I deem it fit that this writ petition be disposed of directing the 2nd respondent 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 within a period of 2 months from the date of receipt of a copy of this judgment.

5.

Till the disposal of the appeal, no coercive steps shall be initiated against the petitioner pursuant to Ext.P1. T.R.RAVI JUDGE SKP/06-02

Appendix — schedule of exhibits
APPENDIX OF WP(C) 3800/2023 PETITIONER’S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2021-22 DTD. 12-12-2022 EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 11-01-2023 EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 11-01-2023 RESPONDENTS' EXHIBITS:NIL TRUE COPY P.A. TO JUDGE

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