THE PERAKAM SERVICE CO- OPERATIVE BANK LTD NO. F 6916 vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

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WP(C)/37744/2022HC KeralaKLHC01081294202225 November 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala, while acknowledging the pendency of the appeal (Ext.P3) before the Income Tax Appellate Tribunal (1st respondent), deemed it appropriate to dispose of the writ petition by directing the Tribunal to consider the appeal expeditiously. The Court directed the 1st respondent (Commissioner of Income Tax (Appeals)) to consider and pass appropriate orders on Ext.P3 appeal within a period of 2 months from the date of receipt of a copy of the judgment. 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. The Court did not decide on the merits of the Section 80P deduction claim itself, but rather on the procedural aspect of ensuring timely adjudication of the appeal.

What were the facts?

The petitioner, The Perakam Service Co-operative Bank Ltd., is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. An assessment order (Ext.P1) was passed against the petitioner, rejecting its claim for deduction under Section 80P. The reason for rejection was the absence of evidence demonstrating that the petitioner satisfied the ingredients of a Primary Agricultural Credit Society as defined by the Kerala Co-operative Societies Act. The petitioner challenged this assessment order by filing an appeal (Ext.P3) before the Commissioner of Income Tax (Appeals), the 1st respondent. The petitioner argued that the Supreme Court's judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485 now governs the field, making the assessment incorrect. This writ petition was filed seeking a direction for the expeditious disposal of the pending appeal.

What were the issues?

1. Whether the assessment order rejecting the petitioner's claim for deduction under Section 80P is incorrect in light of the Supreme Court's judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485. (Question of law) Assessee's Contentions: The petitioner argued that the Supreme Court's decision in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485 governs the present case and renders the assessment order incorrect. The petitioner's claim for deduction under Section 80P was rejected by the Assessing Officer on the grounds that the petitioner did not satisfy the ingredients of a Primary Agricultural Credit Society as contemplated under the Kerala Co-operative Societies Act. Revenue's Contentions: The judgment does not record any specific contentions made by the revenue in this writ petition. The revenue was represented by counsel.

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. FRIDAY, THE 25TH DAY OF NOVEMBER 2022 / 4TH AGRAHAYANA, 1944 WP(C) NO. 37744 OF 2022 PETITIONER: THE PERAKAM SERVICE CO- OPERATIVE BANK LTD NO. F 6916 CHAVAKKAD, PERAKAM P.O THRISSUR-680506 ,REPRESENTED BY ITS SECRETARY., PIN - 680506 BY ADV P.C.SASIDHARAN RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, ROOM NO. 356, C.R. BUILDING, IP ESTATE, DELHI- 110002., PIN - 110002 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX O/O THE PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, MANANCHIRA, KOZHIKODE, KERALA - 673001. , PIN - 673001 3 THE INCOME TAX OFFICER WARD 2(1), THRISSUR, OFFICE OF THE INCOME TAX OFFICER, THRISSUR- 680001., PIN - 680001 BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA ADV. CHRISTOPHER ABRAHAM (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.11.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P. (C) No. 37744 of 2022 ..2.. JUDGMENT Dated this the 25th day of November, 2022 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. 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 1st 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 W.P. (C) No. 37744 of 2022 ..3.. appeal as Ext.P3 and the same is pending consideration before the Income Tax Appellate Tribunal (1st respondent), I deem it fit that this writ petition be disposed of directing the Tribunal 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 appeal, 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 assessment order. The writ petition is disposed of as above. GOPINATH P. JUDGE RMV

W.P. (C) No. 37744 of 2022 ..4.. APPENDIX OF WP(C) 37744/2022 PETITIONER EXHIBITS Exhibit P1 EXHIBIT P1:- THEOF THE ASSESSMENT ORDER DURING THE ASSESSMENT YEAR 2020-2021 DATED 22/09/2022 Exhibit P2 EXHIBIT P2:- THEOF THE DEMAND NOTICE DATED 22/09/2022 Exhibit P3 EXHIBIT P3:- THEOF THE APPEAL DATED 20/10/2022 Exhibit P4 EXHIBIT P4:- THEOF THE ACKNOWLEDGEMENT RECEIPT OF INCOME TAX FORMS SHOWING THE FILING OF THE APPEAL ON 20/10/2022 Exhibit P5 EXHIBIT P5:- THEOF THE STAY PETITION DATED 21/10/2022 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT Exhibit P6 EXHIBIT P6:- THEOF THE JUDGMENT IN W.A.NO.1536 OF 2019 DATED 1/7/2019 Exhibit P7 EXHIBIT P7:- THEOF THE JUDGMENT IN W.P(C) NO.14282/2021 DATED 19/7/2021 Exhibit P8 EXHIBIT P8:- THEOF THE JUDGMENT IN W.P(C) NO. 34067/2022 DATED 27/10/2022 RESPONDENTS' EXHIBITS:NILP.A.TO JUDGE

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