VELLINEZHI PANCHAYATH SERVICE COOPERATIVE BANK LIMITED, PALAKKAD, REPRESENTED BY ITS SECRETARY vs. ADDITIONAL /JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX /INCOME TAX OFFICER, NATIONAL E-ASSE

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WP(C)/2289/2023HC KeralaKLHC01005652202324 January 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala noted that the petitioner has already availed a statutory remedy by preferring an appeal before the Commissioner of Income Tax (Appeals). Therefore, the Court disposed of the writ petition by directing the Appellate Authority to consider the appeal and pass orders on the same at the earliest. The Court also directed that the respondent shall not take any coercive steps against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal (Ext.P2). The High Court did not decide on the merits of the Section 80P deduction claim. The core principle here is that when a statutory appeal is pending, the High Court may direct expeditious disposal and grant interim protection, rather than adjudicating the substantive issue in a writ petition.

What were the facts?

The petitioner, Vellinezhi Panchayath Service Co-operative Bank Limited, is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. The Assessing Officer passed an order (Ext.P1) rejecting the petitioner's claim for deduction under Section 80P of the Income Tax Act. The rejection was based on the ground that the petitioner did not satisfy the ingredients of a Primary Agricultural Credit Society as contemplated by the Kerala Co-operative Societies Act. The petitioner challenged this assessment order by filing an appeal (Ext.P2) before the Commissioner of Income Tax (Appeals), which is currently pending. The petitioner has approached the High Court of Kerala by way of a writ petition seeking directions regarding the pending appeal.

What were the issues?

1. Whether the petitioner, a Primary Agricultural Credit Society, is eligible for deduction under Section 80P of the Income Tax Act, 1961, when the Assessing Officer has rejected the claim on the grounds that it does not satisfy the ingredients of a Primary Agricultural Credit Society as per the Kerala Co-operative Societies Act, 1969. Assessee's Contention: The petitioner relies on the judgment of the Hon'ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485 to challenge the assessment order. The petitioner has availed the statutory remedy by filing an appeal before the Commissioner of Income Tax (Appeals). Revenue's Contention: The judgment does not record any specific contentions made by the revenue in this writ petition. The assessment order itself rejected the deduction claim.

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 TUESDAY, THE 24TH DAY OF JANUARY 2023 / 4TH MAGHA, 1944 WP(C) NO. 2289 OF 2023 PETITIONER: 1 VELLINEZHI PANCHAYATH SERVICE COOPERATIVE BANK LIMITED, REG. NO.1217, SREELAKSHMI COMPLEX, THIRUVAZHIYODE, PALAKKAD - 679 514 KERALA, PIN – 679514 REPRESENTED BY ITS SECRETARY SHRI CHANDRA MOHANAN T. AGED 50 YEARS BY ADV ALAN PRIYADARSHI DEV RESPONDENTS: 1 ADDITIONAL /JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX /INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE NATIONAL E-ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110 003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, JAWAHARLAL NEHRU STADIUM, DELHI-110 003 SRI. JOSE JOSEPH, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.2289 of 2023 2 T.R. RAVI, J. ----------------------------------------- W.P.(C.) No.2289 of 2023 ----------------------------------------- Dated this the 24th day of January, 2023

JUDGMENT The petitioner is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. The petitioner has been assessed for tax as per Ext.P1 order rejecting the claim for deduction made under Section 80P of Income Tax Act on the ground that there was no evidence to show that the petitioner has satisfied the ingredients of the Primary Agricultural Credit Society as contemplated under the Kerala Co-operative Societies Act. Reliance is placed on the judgment of the Hon’ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485 to challenge the assessment order. The petitioner has preferred Ext.P2 appeal and the same is pending before the 2nd respondent.

Since the petitioner has already availed a statutory remedy, this writ petition is disposed of directing the Appellate Authority to consider the appeal and pass orders on the same at the earliest.

The respondent shall not take any coercive steps against the petitioner pursuant to Ext.P1 assessment order till the disposal of Ext.P2 appeal. T.R.RAVI JUDGE SKP/24-01

Appendix — schedule of exhibits
APPENDIX OF WP(C) 2289/2023 PETITIONER’S EXHIBITS: EXHIBIT-P1 TRUE COPY OF THE ASSESSMENT ORDER AND DEMAND NOTICE FOR AY 2020-21 DATED 23.09.2022 PASSED BY THE 1ST RESPONDENT EXHIBIT-P2 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 15- 10-2022 FOR THE ASSESSMENT YEAR 2020-21 SUBMITTED TO THE 2ND RESPONDEN EXHIBIT-P3 TRUE COPY OF THE STAY PETITION DATED 12-10-2022 SUBMITTED TO THE 2ND RESPONDENT RESPONDENTS' EXHIBITS:NIL TRUE COPY P.A. TO JUDGE

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