THE KATTOOR SERVICE CO-OPERATIVE BANK LTD vs. THE INCOME TAX OFFICER

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WP(C)/23759/2022HC KeralaKLHC01049534202222 July 2022Author: 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 directed the Appellate Authority (3rd respondent) to consider and pass appropriate orders on the pending appeals (Exts. P3, P6, P9) expeditiously. The Court also granted interim relief by directing that no coercive steps would be initiated against the petitioner pursuant to the assessment orders (Exts. P1, P4, P7) and demand notices (Exts. P2, P5, P8) until the disposal of the appeals. The primary issue regarding the validity of the Section 80P deduction in light of the Supreme Court's judgment was therefore left to be decided by the appellate authority.

What were the facts?

The petitioner, The Kattoor Service Co-operative Bank Ltd., a Primary Agricultural Credit Society, received assessment orders (Exts. P1, P4, P7) on March 25, 2022, March 24, 2022, and March 25, 2022, respectively. The assessing authority rejected the petitioner's claim for deduction under Section 80P, stating there was no evidence that the petitioner met the criteria for a Primary Agricultural Credit Society under the Kerala Co-operative Societies Act. The petitioner argued that the Supreme Court's judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax now governs such cases and renders the assessment incorrect. Appeals (Exts. P3, P6, P9) were filed by the petitioner before the 3rd respondent (Income Tax Officer, National Faceless Assessment Centre) and were pending.

What were the issues?

1. Whether the assessment orders rejecting the deduction under Section 80P are valid, considering the Supreme Court's judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax. Assessee's Contentions: The petitioner argued that the assessment orders were incorrect as they failed to consider the binding precedent set by the Supreme Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, which governs the field of deductions for Primary Agricultural Credit Societies. Revenue's Contentions: The judgment does not record any specific contentions from the revenue regarding the issues raised by the petitioner.

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 22ND DAY OF JULY 2022 / 31ST ASHADHA, 1944 WP(C) NO. 23759 OF 2022 PETITIONERS: THE KATTOOR SERVICE CO-OPERATIVE BANK LTD NO.426, KATTOOR P O, THRISSUR DISTRICT, KERALA, PIN-680 702. REPRESENTED BY ITS SECRETARY VIJAYAKUMAR T V. BY ADVS. C.A.JOJO MATHEWS JOSEPH RESPONDENTS: 1 THE INCOME TAX OFFICER WARD2 (1), AYAKAR BHAVAN, SAKTHAN STAND, THRISSUR-680 001. 2 THE COMMISSIONER OF INCOME TAX ( APPEALS) NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI-110 001. 3 INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI-110001. BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.07.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.23759/2022 -:2:-

JUDGMENT Petitioner is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. Exts.P1, P4 & P7 assessment orders were issued against the petitioner on 25.03.2022, 24.03.2022 & 25.03.2022 respectively. 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 orders before the 3rd 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 appeals as Exts.P3, P6 & P9 and the same are pending consideration before the 3rd respondent, I deem it fit that this writ petition be disposed of directing the Appellate Authority to consider the appeals in a time bound manner.

4.

Accordingly, there will be a direction to the 3rd respondent to consider and pass appropriate orders on Ext.P3, P6 & P9 as expeditiously as possible.

5.

Till the disposal of the appeals, no coercive steps shall be initiated against the petitioner pursuant to Ext.P1, P4 & P7 assessment orders and Exts.P2, P5 & P8 demand notices. The writ petition is disposed of as above. GOPINATH P.

JUDGE ats

Appendix — schedule of exhibits
APPENDIX OF WP(C) 23759/2022 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE ASSESSMENT ORDER AY 2014- 15 DATED 25.03.2022 ISSUED BY THE 3RD RESPONDENT Exhibit P2 A TRUE COPY OF THE DEMAND NOTICE DATED 25.03.2022 ISSUED BY THE 3RD RESPONDENT Exhibit P3 A TRUE COPY OF THE APPEAL FOR AY 2014-15 FILED BEFORE THE 2ND RESPONDENT DATED 15.07.2022 Exhibit P4 A TRUE COPY OF THE ASSESSMENT ORDER AY 2015- 16 DATED 24.03.2022 ISSUED BY THE 3RD RESPONDENT Exhibit P5 A TRUE COPY OF THE DEMAND NOTICE DATED 24.03.2022 ISSUED BY THE 3RD RESPONDENT Exhibit P6 A TRUE COPY OF THE APPEAL FOR AY 2015-16 FILED BEFORE THE 2ND RESPONDENT DATED 15.07.2022 Exhibit P7 A TRUE COPY OF THE ASSESSMENT ORDER AY 2016- 17 DATED 25.03.2022 ISSUED BY THE 3RD RESPONDENT Exhibit P8 A TRUE COPY OF THE DEMAND NOTICE DATED 25.03.2022 ISSUED BY THE 3RD RESPONDENT Exhibit P9 A TRUE COPY OF THE APPEAL FOR AY 2016-17 FILED BEFORE THE 2ND RESPONDENT DATED 15.07.2022 Exhibit P10 A TRUE COPY OF THE DEMAND NOTICE FOR AN AMOUNT OF RS.90,83, 94,980/-FOR AYS 2014-15 TO 2016-17 ISSUED BY THE 1ST RESPONDENT DATED 04.07.2022

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