PERUR SERVICE COOPERATIVE BANK LIMITED, NO.F-1614, PALAKKAD REPRESENTED BY ITS SECRETARY SHRI SAT vs. ADDITIONAL /JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX OFFICER,

PDF · subscribers
WP(C)/2275/2023HC KeralaKLHC01005627202324 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 case. Since the petitioner had already availed a statutory remedy by filing an appeal before the Appellate Authority (2nd respondent), the High Court disposed of the writ petition. The Court directed the Appellate Authority to consider the appeal (Ext.P2) and pass orders at the earliest. 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 issue was left undecided as the Court did not delve into the substantive grounds of appeal.

What were the facts?

The petitioner, The Perur Service Co-operative Bank Ltd., 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 reason for rejection was the alleged lack of evidence demonstrating that the petitioner satisfied the ingredients of a Primary Agricultural Credit Society as defined under 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 by way of a writ petition seeking directions regarding the pending appeal.

What were the issues?

1. Whether the assessment order rejecting the claim for deduction under Section 80P of the Income Tax Act, based on the ground that the petitioner did not satisfy the ingredients of a Primary Agricultural Credit Society as contemplated under the Kerala Co-operative Societies Act, is sustainable? The assessee (petitioner) contends that the assessment order rejecting the deduction under Section 80P is erroneous. The assessee 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 revenue's contentions are not recorded in the judgment.

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. 2275 OF 2023 PETITIONER: 1 THE PERUR SERVICE COOPERATIVE BANK LTD., F. NO.1614, PERUR, LAKKIDI PO, OTTAPALAM KERALA, PIN – 679302 REPRESENTED BY ITS SECRETARY SHRI SATHISH K AGED 54 YEARS BY ADV ALAN PRIYADARSHI DEV RESPONDENTS: 1 ADDITIONAL /JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI, PIN - 110003 2 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, JAWAHARLAL NEHRU STADIUM, DELHI, PIN - 110003 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.2275 of 2023 2 T.R. RAVI, J. ----------------------------------------- W.P.(C.) No.2275 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) 2275/2023 PETITIONER’S EXHIBITS: EXHIBIT1 TRUE COPY OF THE ASSESSMENT ORDER AND DEMAND NOTICE FOR AY 2020-21 DATED 29.09.2022 EXHIBIT-P2 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 27- 10-2022 FOR THE ASSESSMENT YEAR 2020-21 SUBMITTED TO THE 2ND RESPONDENT EXHIBIT-P3 TRUE COPY OF THE STAY PETITION DATED 25-10-2022 SUBMITTED TO 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 →