THE ENGANDIYUR FARMERS CO-OPERATIVE BANK LTD NO. E- 977 vs. THE COMMISSIONER OF INCOME TAX (APPEALS)
What did the High Court hold?
The High Court of Kerala did not decide the merits of the case. Instead, it directed the Appellate Authority (the first respondent) to consider and pass appropriate orders on the petitioner's pending appeal (Ext.P3) expeditiously. The Court also granted interim relief by directing that no coercive steps shall be initiated against the petitioner pursuant to the assessment order (Ext.P1) until the appeal is decided. The primary finding of the Court was procedural: that the appeal should be heard and decided in a time-bound manner. The issue of whether the deduction under Section 80P was rightly denied by the assessing officer remains undecided by the High Court, as it was left for the appellate authority to determine.
What were the facts?
The petitioner, The Engandiyur Farmers Co-operative Bank Ltd., a Primary Agricultural Credit Society, received an assessment order dated August 17, 2021. The assessing officer 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 Co-operative Societies Act. The petitioner filed an appeal against this assessment order before the Commissioner of Income Tax (Appeals), the first respondent. In the appeal, the petitioner argued that the assessing officer failed to consider the Supreme Court's judgment in Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others, despite the assessment order being issued after this judgment.
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 Co-operative Societies Act. Assessee's Contentions: The petitioner argued that the assessment order was 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, which was delivered prior to the assessment order. The petitioner contended that this omission by the assessing officer was erroneous. Revenue's Contentions: The judgment does not record any specific contentions from the revenue regarding this issue. The revenue's position is implicitly represented by the assessment order passed by the assessing officer.
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 Petitioner is a Primary Agricultural Credit Society registered under the Co-operative Societies Act, 1969. Ext.P1 order of assessment was issued against the petitioner on 17.08.2021. 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 Co-operative Societies Act.
While assailing the assessment order before the 1st respondent Appellate Authority, 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 the assessing officer though the assessment order was rendered subsequent to the Supreme Court judgment.
Since the petitioner has already preferred an appeal as Ext.P3 and the same is pending consideration before the 1st respondent, I deem it fit that this writ petition be disposed of directing the Appellate Authority to consider the appeal in a time bound
WP(C) NO. 27921 OF 2021 3 manner.
Accordingly there will a direction to the 1st respondent to consider and pass appropriate orders on Ext.P3 as expeditiously as possible.
Till such time, 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 jm/
WP(C) NO. 27921 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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