THE THIRUMITTACODE SERVICE CO-OPERATIVE BANK LIMITED REPRESENTED BY ITS SECRETARY MANIKANDAN K K vs. ADDITIONAL/JOINT/DEPUTY/ASSISANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER

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WP(C)/1707/2023HC KeralaKLHC01004167202319 January 2023Author: HONOURABLE MR. JUSTICE GOPINATH P.4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court did not decide the merits of the case. Instead, it noted that the petitioner had already preferred an appeal before the Commissioner of Income Tax (Appeals) and that this appeal was pending. Therefore, the High Court deemed it appropriate to dispose of the writ petition by directing the Appellate Authority to consider the appeal in a time-bound manner. The Court directed the 2nd respondent (Commissioner of Income Tax (Appeals)) to consider and pass appropriate orders on the petitioner's appeal (Ext.P2) as expeditiously as possible. 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. No issue was expressly left undecided, as the Court's action was procedural.

What were the facts?

The petitioner, The Thirumittacode Service Co-operative Bank Limited, a Primary Agricultural Credit Society, received an assessment order dated 23.09.2022 for assessment year 2020-21. The Assessing Officer rejected the petitioner's claim for deduction under Section 80P, stating there was no evidence that the petitioner satisfied the ingredients of a Primary Agricultural Credit Society as per the Kerala Co-operative Societies Act. The petitioner filed an appeal before the Commissioner of Income Tax (Appeals), arguing that the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax governs the matter and renders the assessment incorrect. The High Court considered the pending appeal.

What were the issues?

1. Whether the assessment order dated 23.09.2022, rejecting the deduction under Section 80P for assessment year 2020-21, is valid, considering the petitioner's claim to be a Primary Agricultural Credit Society under the Kerala Co-operative Societies Act. Assessee's Contention: The petitioner contends that the assessment order is incorrect, relying on the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, which they argue governs the present case. Revenue's Contention: The judgment does not record any specific contentions made by the revenue in response to the petitioner's arguments before the High Court.

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 GOPINATH P. THURSDAY, THE 19TH DAY OF JANUARY 2023 / 29TH POUSHA, 1944 WP(C) NO. 1707 OF 2023 PETITIONER/S: THE THIRUMITTACODE SERVICE CO-OPERATIVE BANK LIMITED REPRESENTED BY ITS SECRETARY MANIKANDAN K K AGED 51 YEARS CHATHANNUR P O PALAKKAD DISTRICT KERALA, PIN - 679537 BY ADV ALAN PRIYADARSHI DEV RESPONDENT/S: 1 ADDITIONAL/JOINT/DEPUTY/ASSISANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER ASSESSMENT UNIT, INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE, MINISTRY OF FINANCE, ROOM NO 401, NEW DELHI, PIN - 110003 2 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, JAWAHARLAL NEHRU STADIUM NEW DELHI, PIN - 110003 ADV. JOSE JOSEPH (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 1707 OF 2023 2

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 on 23.09.2022, for the assessment year 2020-21. 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 has sought to canvass that the judgment of the Supreme Court in Mavilayi Service Co- operative Bank Ltd. v. Commissioner of Income Tax [2021 (1) KLT 485] now governs the field thereby rendering the assessment itself as 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 Appellate Authority to consider the appeal in a time bound manner.

WP(C) NO. 1707 OF 2023 3

4.

Accordingly, there will be a direction to the 2nd respondent to consider and pass appropriate orders on Ext.P2, as expeditiously as possible.

5.

Till the disposal of the appeal, no coercive steps shall be initiated against the petitioner pursuant to Ext.P1 assessment order.

The writ petition is disposed of as above. GOPINATH P. JUDGE ajt

WP(C) NO. 1707 OF 2023 4

Appendix — schedule of exhibits
APPENDIX OF WP(C) 1707/2023 PETITIONER EXHIBITS EXHIBIT P-1 TRUE COPY OF ASSESSMENTORDER FOR AY 2020-21 PASSED BY THE FIRST RESPONDENT DATED 23.09.2022 EXHIBIT-P2 TRUE COPY OF MEMORANDUM OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 20.10.2022 EXHIBIT-P3 TRUE COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 19.10.2022

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