THE CHERPALACHERI SERVICE CO-OPERATIVE BANK LTD, PALAKKAD, REPRESENTED BY ITS SECRETARY, SMT. PRE vs. 1. ADDITIONAL /JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX OFFICER,

PDF · subscribers
WP(C)/2202/2023HC KeralaKLHC01005410202324 January 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala did not decide the merits of the case. Instead, it noted that the petitioner has already availed a statutory remedy by filing an appeal (Ext.P2) before the Appellate Authority. Therefore, the Court disposed of the writ petition by directing the Appellate Authority to consider and pass orders on the appeal at the earliest. The Court also directed that no coercive steps shall be taken against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. No specific finding was made on the eligibility for deduction under Section 80P, as the appeal is yet to be adjudicated.

What were the facts?

The petitioner, Cherpalacheri Service Co-operative Bank Ltd., a Primary Agricultural Credit Society, is challenging an assessment order (Ext.P1) that rejected its 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 defined under the Kerala Co-operative Societies Act. The petitioner relies on the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax. An appeal (Ext.P2) has been filed by the petitioner and is pending before the 2nd respondent, the Commissioner of Income Tax (Appeals), NFAC. This writ petition was filed before the High Court of Kerala.

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, considering the criteria for such societies under the Kerala Co-operative Societies Act. The assessee argues that it is a Primary Agricultural Credit Society and therefore entitled to the deduction. The revenue's position, as reflected in the assessment order, is that the petitioner has not satisfied the ingredients of a Primary Agricultural Credit Society as contemplated under the Kerala Co-operative Societies Act, thus disentitling it to the deduction. The assessee relies on the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax.

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. 2202 OF 2023 PETITIONER: 1 THE CHERPALACHERI SERVICE CO-OPERATIVE BANK LTD, PALAKKAD, REPRESENTED BY ITS SECRETARY, SMT. PREMALATHA M. AGED 57 YEARS CHERPULASSERI POST, PALAKKAD - 679 503. BY ADV ALAN PRIYADARSHI DEV RESPONDENTS: 1 ADDITIONAL /JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX OFFICER, ASSESSMENT UNIT, NATIONAL E-ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL STADIUM, DELHI - 110 003 2 THE COMMISSIONER OF INCOME TAX (APPEALS), NFAC NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, JAWAHARLAL 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.2202 of 2023 2 T.R. RAVI, J. ----------------------------------------- W.P.(C.) No.2202 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) 2202/2023 PETITIONER’S EXHIBITS: EXHIBIT-P1 TRUE COPY OF THE ASSESSMENT ORDER AND DEMAND NOTICE DATED 23-9-2022 PASSED BY THE FIRST RESPONDENT FOR F6-2020-21 EXHIBIT-P2 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 22- 10-2022 SUBMITTED BEFORE THE SECOND RESPONDENT EXHIBIT-P3 TRUE COPY OF THE STAY PETITION DATED 22-10-2022 SUBMITTED BEFORE THE 2ND RESPONDENT RESPONDENTS' EXHIBITS:NIL TRUE COPY P.A. TO JUDGE

More judgments on Section 80P

All 5,069 judgments and leading authorities on Section 80P →

Recent GST High Court judgments

Search GST case law →