M/S THE PANNIYANKARA SERVICE CO-OPERATIVE BANK KALLAI, KOZHIKODE vs. JOINT COMMISSIONER OF INCOME TAX RANGE-1, KOZHIKODE

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WP(C)/2963/2023HC KeralaKLHC01007142202330 January 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court did not decide the merits of the assessment order or the appeal. Instead, the Court found it appropriate to direct the 1st respondent (Joint Commissioner of Income Tax) to consider the pending appeal (Ext.P3) in a time-bound manner. The Court ordered the 1st respondent to pass appropriate orders on Ext.P3 expeditiously, within a period of 2 months from the date of receipt of a copy of the judgment. Furthermore, the Court granted a stay on coercive steps against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. No specific finding was made on the legality of the assessment or the entitlement to the Section 80P deduction.

What were the facts?

The petitioner, M/s The Panniyankara Service Co-operative Bank Kallai, a Primary Agricultural Credit Society, filed a writ petition challenging an assessment order (Ext.P1). The assessment order rejected the petitioner's claim for deduction under Section 80P of the Income Tax Act, 1961. The stated reason for rejection was the absence of evidence demonstrating that the petitioner satisfied the ingredients of a Primary Agricultural Credit Society as defined under the Kerala Co-operative Societies Act, 1969. The petitioner had already filed an appeal (Ext.P3) against this assessment order before the Joint Commissioner of Income Tax (1st respondent), which was pending. The petitioner relied on the Supreme Court judgment in Mavilayi Service Cooperative Bank Ltd. v. Commissioner of Income Tax to argue that the assessment itself was incorrect.

What were the issues?

1. Whether the assessment order rejecting the deduction under Section 80P is legally sustainable, considering the petitioner's status as a Primary Agricultural Credit Society. Assessee's Contentions: The petitioner argued that the assessment order was incorrect, relying on the Supreme Court's decision in Mavilayi Service Cooperative Bank Ltd. v. Commissioner of Income Tax. The petitioner contended that as a Primary Agricultural Credit Society, it was entitled to the deduction under Section 80P. 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 on the grounds that the petitioner did not satisfy 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

Heard together (2 matters)

WP(C) NO. 2963 OF 2023
WP(C) No.2963 of 2022

Read from the judgment's own cause title. This page is filed under one of them.

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI MONDAY, THE 30TH DAY OF JANUARY 2023 / 10TH MAGHA, 1944 WP(C) NO. 2963 OF 2023 PETITIONER: M/S THE PANNIYANKARA SERVICE CO-OPERATIVE BANK KALLAI, KOZHIKODE,PIN – 673 003 REPRESENTED BY ITS SECRETARY P. MAHESH CHANDRA, BY ADVS. S.ARUN RAJ ARJUN S.RAJ C.T.SUJA RESPONDENTS: 1 JOINT COMMISSIONER OF INCOME TAX RANGE-1, KOZHIKODE, AAYAKAR BHAVAN, KOZHIKODE, PIN – 673 001 2 THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, CENTRAL REVENUE BUILDING, KAKKANAD, ERNAKULAM, PIN – 682 030 3 INCOME TAX OFFICER WARD (13), AAYAKAR BHAVAN, MANANCHIRA, KOZHIKODE, PIN – 673 001 BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) No.2963 of 2022 2 T.R.RAVI, J. ---------------------------------------- WP (C) No.2963 of 2023 ------------------------------------------- Dated this the 30th day of January, 2023

JUDGMENT Petitioner is a Primary Agricultural Credit Society registered under the Kerala Cooperative 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 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 Cooperative 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.P3 and the same is pending consideration before the 1st respondent, I deem it fit that this writ petition be disposed of directing the 1st respondent to consider the appeal in a time bound manner.

4.

Accordingly, there will be a direction to the 1st respondent to consider and pass appropriate orders on Ext.P3, 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 sn JUDGE

Appendix — schedule of exhibits
APPENDIX OF WP(C) 2963/2023 PETITIONER'S EXHIBITS Exhibit P1 A TRUE COPY OF THE ORDER DATED 27-7-2018 PASSED UNDER SECTION 271D R.W.S 269SS OF THE ACT BY THE FIRST RESPONDENT Exhibit P2 A TRUE COPY OF THE ORDER DATED 24-8-2022 PASSED BY THE CIT (APPEALS), NATIONAL FACELESS APPEAL CENTRE, DELHI FOR THE AY 2015-16 Exhibit P3 A TRUE COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE AY 2015-16 Exhibit P4 A TRUE COPY OF THE STAY APPLICATION FILED BY THE PETITIONER IN EXHIBIT P-3 APPEAL BEFORE THE 2ND RESPONDENT FOR THE AY 2015-16 Exhibit P5 A TRUE COPY OF THE NOTICE DATED 16-1-2023 ISSUED BY THE 3RD RESPONDENT RESPONDENT'S EXHIBITS : NIL //TRUE COPY// PA TO JUDGE

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