M/S. CHALISSERY SERVICE CO--OPERATIVE BANK LTD. vs. ADDITIONAL / JOINT /DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX,

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WP(C)/3586/2022HC KeralaKLHC01007911202203 February 2022Author: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala did not decide the merits of the case. Instead, it noted that the petitioner had already preferred an appeal before the 2nd respondent (Commissioner of Income Tax (Appeals)) and that this appeal was pending consideration. Consequently, the 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 2nd respondent was directed to consider and pass appropriate orders on the appeal expeditiously. Furthermore, the Court ordered that no coercive steps would be initiated against the petitioner pursuant to the assessment order until the disposal of the appeal. The issue of whether the deduction under Section 80P was rightly denied was expressly left undecided by the High Court.

What were the facts?

The petitioner, M/s. Chalissery Service Co-operative Bank Ltd., a Primary Agricultural Credit Co-operative Society, received an assessment order dated 25.05.2021. 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 defined under the Kerala Co-operative Societies Act. The petitioner filed an appeal before the Commissioner of Income Tax (Appeals), the 2nd respondent, arguing that the assessing officer failed to consider the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, which was delivered prior to the assessment order. The writ petition was filed seeking a direction to the Appellate Authority to consider the appeal.

What were the issues?

1. Whether the assessing officer erred in rejecting the petitioner's claim for deduction under Section 80P of the Income Tax Act, 1961, by failing to consider the ingredients of a Primary Agricultural Credit Society as contemplated under the Kerala Co-operative Societies Act, 1969? Assessee's Contentions: - The petitioner argued that the assessing officer did not consider the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, despite the assessment order being passed subsequent to this judgment. Revenue's Contentions: - The judgment does not record any specific contentions from the revenue regarding this issue.

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 BECHU KURIAN THOMAS THURSDAY, THE 3RD DAY OF FEBRUARY 2022 / 14TH MAGHA, 1943 WP(C) NO. 3586 OF 2022 PETITIONER/S: M/S. CHALISSERY SERVICE CO--OPERATIVE BANK LTD. P-579, CHALISSERY, PALAKKAD 679 536, REPRESENTED BY ITS SECRETARY, SHRI. PUSHPAKARAN, VALIYAVEETUVALAPPIL KANDU. BY ADVS. T.M.SREEDHARAN (SR.) NISHA JOHN V.P.NARAYANAN RESPONDENT/S: 1 ADDITIONAL / JOINT /DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX OFFICER, NATIONAL E- ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL STADIUM, DELHI 110 003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, JAWAHARLAL STADIUM, DELHI 110 003. OTHER PRESENT: ADV.JOSE JOSEPH-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.02.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 3586 OF 2022 2 BECHU KURIAN THOMAS, J. ======================== W.P.(C) No. 3586 of 2022 ======================== Dated this the 3rd day of February, 2022

J U D G M E N T Petitioner is a Primary Agricultural Credit Co-operative Society registered under the Kerala Co-operative Societies Act, 1969. Ext.P1 order of assessment was issued against the petitioner on 25.05.2021. 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] was not considered by the assessing

WP(C) NO. 3586 OF 2022 3 officer though the assessment order was rendered subsequent to the Supreme Court Judgment.

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.

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. BECHU KURIAN THOMAS JUDGE LU

WP(C) NO. 3586 OF 2022 4

Appendix — schedule of exhibits
APPENDIX OF WP(C) 3586/2022 PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER AND DEMAND NOTICE ALONG WITH COMPUTATION OF INCOME FOR AY 2018-19 DATED 25.05.2021. EXHIBIT P2 TRUE COPY OF THE MEMORANDUM OF APPEAL FOR THE ASSESSMENT YEAR 2018-19 DATED 17.08.2021 SUBMITTED BEFORE THE 2ND RESPONDENT. EXHIBIT P3 TRUE COPY OF THE STAY PETITION FOR THE ASSESSMENT YEAR 2018-19 DATED 02.08.2021 SUBMITTED BEFORE THE 2ND RESPONDENT. // True Copy // PA To Judge

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