AVANANKUZHI SERVICE CO-OPERATIVE BANK LTD NO.2387 vs. THE JOINT COMMISSIONER OF INCOME TAX
What did the High Court hold?
The High Court disposed of the writ petition by directing the concerned assessing authority to determine which documents are actually required for completing the assessment. This determination must also consider the petitioner society's entitlement to exemption under Section 80P of the Income Tax Act. The assessing authority is to complete this exercise within one month of receiving a copy of the judgment. The court further stipulated that the assessment proceedings should only be finalized after this selective document identification process is concluded. The principle established is that faceless assessment procedures should accommodate practical limitations and consider the specific circumstances of assessees, particularly those claiming statutory exemptions, by focusing on essential documentation rather than demanding an exhaustive upload.
What were the facts?
The petitioner, Avanankuzhi Service Co-operative Bank Ltd, filed a writ petition before the High Court of Kerala challenging the Income Tax Department's request for uploading a large volume of documents, estimated at nearly one lakh, for assessment purposes. The petitioner argued that the online system could not support such a large upload and that, as a co-operative society entitled to exemption under Section 80P of the Income Tax Act, extensive scrutiny of all documents might not be necessary. The assessment year(s) are not specified. The dispute arises from the procedural demands of the faceless assessment process.
What were the issues?
1. Whether the Income Tax Department's demand for uploading a voluminous quantity of documents, potentially exceeding one lakh, is practically feasible and necessary for the assessment of a co-operative society claiming exemption under Section 80P of the Income Tax Act? Assessee's Contention: The petitioner argued that the online system's limitations prevent the upload of such a large volume of documents. Furthermore, given its status as a co-operative society eligible for Section 80P exemption, the necessity of scrutinizing every single document is questionable. Revenue's Contention: The revenue, through its Standing Counsel, suggested that the Assessing Officer should first identify only the essential documents required for completing the assessment. Subsequently, a revised request for uploading these specific documents could be made to the petitioner.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
JUDGMENT The petitioner has approached this Court stating that it is unable to upload all the documents sought for by the Income Tax Department as a part of it's assessment on account of the voluminous nature of the documents. It is submitted that if all the documents required by the Department are to be uploaded, nearly one lakh documents will have to be uploaded by the petitioner. It is submitted that the system does not support the same and this is causing great difficulty to the petitioner. It is also pointed out that the petitioner is a Co-operative Society, which is entitled to exemption under Section 80P of the Income Tax Act and it may really not be necessary for the authorities to scrutinize all the documents now sought to be produced.
The learned Standing Counsel appearing for the Income Tax Department submits that in the first instance, the concerned Assessing Officer may be directed to determine which of the documents are necessary for the purpose of completing the assessment and thereafter, a fresh request for uploading such documents can be made on the petitioner.
WP(C) NO. 26197 OF 2021 3
Taking note of the above submission, this writ petition stands disposed of directing the concerned assessing authority to determine the documents that may actually be required for completing the assessment of the petitioner also keeping in mind the fact that the petitioner Society is entitled to an exemption under Section 80P of the Income Tax Act. This shall be done within a period of one month from the date of receipt of a copy of this judgment. Needless to say that the assessment proceedings shall be completed only after the above exercise is carried out. The writ petition will stands disposed of as above. GOPINATH P. JUDGE DK
WP(C) NO. 26197 OF 2021 4
Appendix — schedule of exhibits
More judgments on Section 80P
- Shree Bandharda Seva Sahkari Mandli Ltd… vs Income Tax Officer Ward -4, JunagadhITA 881/RJT/2025[2019-20]Status: Disposed19 Oct 2026AY 2019-20
- Duddukuru Primary Agricultural Cooperative… vs ITO, Ward - 1, TadepalligudemITA 258/VIZ/2026[2015-16]Status: Disposed16 Oct 2026AY 2015-16
- Parthasaradhi Mutually Aided Co-Operative… vs Income-Tax Officer, Ward-17(1), HyderabadITA 2322/HYD/2026[AY 2016-17]Status: Disposed16 Oct 2026
- Jijamata Mahila Gramin Bigar Sheti Sahakari… vs ITO Ward -1, BhandraITA 102/NAG/2026[2020-21]Status: Disposed12 Oct 2026AY 2020-21
- Shri Na vs Ari Khedut Sahkari Society Ltd…ITA 362/SRT/2025[2016-17]Status: Disposed9 Oct 2026AY 2016-17
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