BALARAMAPURAM SERVICE CO-OPERATIVE BANK LTD, NO T-14 vs. THE CENTRAL BOARD OF DIRECT TAXES

PDF · subscribers
WP(C)/34741/2022HC KeralaKLHC01074259202201 November 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala did not decide the merits of the appeal. Instead, it directed the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (the 3rd respondent), to consider and pass appropriate orders on the petitioner's pending appeal (Ext.P2) expeditiously, within a period of 2 months from the date of receipt of a copy of the judgment. The Court also granted a stay on coercive steps against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The primary focus was on procedural expediency rather than substantive legal determination.

What were the facts?

The petitioner, Balaramapuram Service Co-operative Bank Ltd., a Primary Agricultural Credit Society, received an assessment order (Ext.P1) rejecting its claim for deduction under Section 80P. The Assessing Officer's reasoning was 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 challenged this assessment order by filing an appeal (Ext.P2) before the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi. 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 governed the issue and rendered the assessment incorrect. The 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 deduction under Section 80P is valid, considering the petitioner's status as a Primary Agricultural Credit Society under the Kerala Co-operative Societies Act and the applicability of the Supreme Court's decision in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485. Assessee's contentions: The petitioner argued that the assessment order was incorrect as it failed to consider the binding precedent set by the Supreme Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485, which governs the field concerning deductions for Primary Agricultural Credit Societies. Revenue's contentions: The judgment does not record any specific contentions made by the revenue in this writ petition.

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. TUESDAY, THE 1ST DAY OF NOVEMBER 2022 / 10TH KARTHIKA, 1944 WP(C) NO. 34741 OF 2022 PETITIONER: BALARAMAPURAM SERVICE CO-OPERATIVE BANK LTD, NO T-14 BP 7/623, VIZHINJAM ROAD BALARAMAPURAM P.O THIRUVANANTHAPURAM, PIN - 695501 REPRESENTED BY ITS SECRETARY A. JAFFER KHAN BY ADVS. K.P.PRADEEP HAREESH M.R. SANAND RAMAKRISHNAN T.T.BIJU T.THASMI M.J.ANOOPA SANU S MALAKEEL RESPONDENTS: 1 THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE, MINISTRY OF FINANCE GOVERNMENT OF INDIA, NORTH BLOCK NEW DELHI, PIN - 110001 , REPRESENTED BY ITS CHAIRMAN 2 ADDITIONAL COMMISSIONER OF INCOME TAX INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI ROOM NO. 401, 2ND FLOOR, E-RAMP, PIN - 110003 JAWAHARLAL NEHRU STADIUM, DELHI 3 COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE (NFAC), DELHI, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI, PIN – 110003. OTHER PRESENT: ADV.CHRISTOPHER ABRAHAM (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.11.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P (C) No.34741/2022 -2-

J U D G M E N T 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 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 an appeal as Ext.P2 and the same is pending consideration before the Income Tax Appellate Tribunal (3rd 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 3rd respondent to consider and pass appropriate orders on Ext.P2, 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 Exts.P1. The writ petition is disposed of as above. GOPINATH P. JUDGE AMG

W.P (C) No.34741/2022 -3-

Appendix — schedule of exhibits
APPENDIX OF WP(C) 34741/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER NO ITBA/AST/S/143(3)/2022-23/1045902393(1) DATED 23-09- 2022 ISSUED FOR THE YEAR 2020-21 BY THE 2NDRESPONDENT TO THE PETITIONER Exhibit P2 TRUE COPY OF THE APPEAL DATED 03-10-2022 FILED FOR THE YEAR 2020-21 BEFORE THE 3RDRESPONDENT BY THE PETITIONER Exhibit P3 TRUE COPY OF THE DEMAND NOTICE ITBA/AST/S/156/2022- 23/1045902409(1) DATED 23-09-2022 ISSUED FOR THE YEAR 2020-21 BY THE 2ND RESPONDENT Exhibit P4 TRUE COPY OF THE JUDGMENT DATED 23-02-2022 IN WPC NO 6109 OF 2022

More judgments on Section 80P

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

Recent GST High Court judgments

Search GST case law →