THE PULLUR SERVICE CO-OPERATIVE BANK NO. F.550, vs. THE COMMISSIONER OF INCOME TAX (APPEALS),

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WP(C)/30579/2021HC KeralaKLHC01075528202114 January 2022Author: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala observed that the petitioner had already preferred appeals before the first respondent (Commissioner of Income Tax (Appeals)) against the assessment orders. Since these appeals were pending, the Court deemed it appropriate to dispose of the writ petition by directing the Appellate Authority to consider the appeals in a time-bound manner. The Court directed the first respondent to consider and pass appropriate orders on the pending appeals (Ext.P3, Ext.P10 & Ext.P17) expeditiously. Furthermore, the Court ordered that no coercive steps shall be initiated against the petitioner pursuant to the assessment orders until the disposal of the appeals. The Court did not decide the merits of the Section 80P deduction claim itself, leaving it for the appellate authority to adjudicate.

What were the facts?

The petitioner, The Pullur Service Co-operative Bank, a Primary Agricultural Credit Society, is challenging assessment orders for assessment years 2013-2014, 2014-2015, and 2015-2016, issued on September 28, 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 contemplated under the Co-operative Societies Act. The petitioner argued that the assessing officer failed to consider the Supreme Court judgment in Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others, despite the assessment orders being passed after this judgment. The petitioner had already filed appeals before the first respondent, the Commissioner of Income Tax (Appeals).

What were the issues?

1. Whether the assessment orders, which rejected the claim for deduction under Section 80P, were passed without considering the binding judgment of the Supreme Court in Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others (2021)? (Question of law and fact, concerning Section 80P of the Income Tax Act, 1961). Assessee's contention: The assessing officer failed to consider the Supreme Court judgment in Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others, even though the assessment orders were issued subsequent to this judgment. Revenue's contention: No specific contention recorded by the revenue in this regard in the judgment.

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 FRIDAY, THE 14TH DAY OF JANUARY 2022 / 24TH POUSHA, 1943 WP(C) NO. 30579 OF 2021 PETITIONER: THE PULLUR SERVICE CO-OPERATIVE BANK NO. F.550, PULLUR, THRISSUR-680683, REPRESENTED BY ITS SECRETARY. 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-110 002. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, O/O. THE PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, MANANCHIRA, KOZHIKODE, KERALA-673 001. 3 THE INCOME TAX OFFICER, WARD 2(1), AAYANKAR BHAVAN, INCOME TAX OFFICE, SHAKTHAN THAMPURAN NAGAR, THRISSUR-680 001. ADV.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.01.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO.30579 OF 2021 2 BECHU KURIAN THOMAS, J ======================= W.P.(C) No. 30579 of 2021 ------------------------------- Dated this the 14 th day of January, 2022

JUDGMENT Petitioner is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. Ext.P1, Ext.P8 and Ext.P15 orders of assessment, relating to the assessment years 2013-2014, 2014-2015 & 2015-2016, were issued against the petitioner on 28.09.2021. In the assessment orders, 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 Co-operative Societies Act.

2.

While assailing the assessment orders before the 1 st respondent, petitioner has sought to canvass that the judgment of the Supreme Court in Mavilayi Service Co- operative Bank and Others v. Commissioner of Income Tax, Calicut and Others [2021 (1) KLT 485] was not considered by WP(C) NO.30579 OF 2021 3 the assessing officer, though the assessment orders were rendered subsequent to the Supreme Court Judgment.

3.

Since the petitioner has already preferred appeals as Ext.P3, Ext.P10 & Ext.P17 and the same are pending consideration before the 1 st 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 1 st respondent to consider and pass appropriate orders on Ext.P3, Ext.P10 & Ext.P17, as expeditiously as possible.

5.

Till the disposal of the appeals, no coercive steps shall be initiated against the petitioner, pursuant to Ext.P1, Ext.P8 and Ext.P15 assessment orders. The writ petition is disposed of as above. BECHU KURIAN THOMAS, JUDGE AMV/14/01/2022

WP(C) NO.30579 OF 2021 4

Appendix — schedule of exhibits
APPENDIX OF WP(C) 30579/2021 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 28/09/2021 ISSUED BY THE 1ST RESPONDENT. Exhibit P2 TRUE COPY OF DEMAND NOTICE DATED 28/09/2021. Exhibit P3 TRUE COPY OF THE APPEAL DATED 27/10/2021. Exhibit P4 TRUE COPY OF THE ACKNOWLEDGMENT OF RECEIPT OF FORM EVIDENCING OF FILING APPEAL DATED 27/10/2021. Exhibit P5 TRUE COPY OF THE STAY PETITION DATED 15/11/2021. Exhibit P6 TRUE COPY OF THE ORDER ISSUED BY THE 3RD RESPONDENT DATED 17/12/2021. Exhibit P7 TRUE COPY OF STAY PETITION FILED BY THE PETITIONER DATED 22/12/2021 BEFORE THE 2ND RESPONDENT. Exhibit P8 TRUE COPY OF THE ASSESSMENT ORDER DATED 28/09/2021 ISSUED BY THE 1ST RESPONDENT. Exhibit P9 TRUE COPY OF DEMAND NOTICE DATED 28/09/2021. Exhibit P10 TRUE COPY OF THE APPEAL DATED 27/10/2021. Exhibit P11 TRUE COPY OF THE ACKNOWLEDGMENT OF RECEIPT OF FORM EVIDENCING OF FILING APPEAL DATED 27/10/2021. Exhibit P12 TRUE COPY OF THE STAY PETITION DATED 15/11/2021. Exhibit P13 TRUE COPY OF THE ORDER ISSUED BY THE 3RD RESPONDENT DATED 17/12/2021. Exhibit P14 TRUE COPY OF STAY PETITION FILED BY THE PETITIONER DATED 22/12/2021 BEFORE THE 2ND RESPONDENT. Exhibit P15 TRUE COPY OF THE ASSESSMENT ORDER DATED 28/09/2021 ISSUED BY THE 1ST RESPONDENT. Exhibit P16 TRUE COPY OF DEMAND NOTICE DATED 28/09/2021. Exhibit P17 TRUE COPY OF THE APPEAL DATED 27/10/2021. Exhibit P18 TRUE COPY OF THE ACKNOWLEDGMENT OF WP(C) NO.30579 OF 2021 5 RECEIPT OF FORM EVIDENCING OF FILING APPEAL DATED 27/10/2021. Exhibit P19 TRUE COPY OF THE STAY PETITION DATED 15/11/2021. Exhibit P20 TRUE COPY OF THE ORDER ISSUED BY THE 3RD RESPONDENT DATED 17/12/2021. Exhibit P21 TRUE COPY OF STAY PETITION FILED BY THE PETITIONER DATED 22/12/2021 BEFORE THE 2ND RESPONDENT. Exhibit P22 TRUE COPY OF THE JUDGMENT IN WPC NO.14282/2021 DATED 19/07/2021. Exhibit P23 THE TRUE COPY OF THE JUDGMENT IN WPC NO.26935/2021 DATED 30/11/2021. RESPONDENTS EXHIBITS NIL TRUE COPY

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