THE VELLATTANJUR SERVICE CO-OPERATIVE BANK LTD. NP. 3906, vs. THE COMMISSIONER OF INCOME TAX (APPEALS)
What did the High Court hold?
The High Court of Kerala, while acknowledging the pendency of the appeal filed by the petitioner (Ext.P3) before the Commissioner of Income Tax (Appeals), deemed it appropriate to dispose of the writ petition by directing the Appellate Authority to consider the appeal in a time-bound manner. The Court directed the 1st respondent (Commissioner of Income Tax (Appeals)) to consider and pass appropriate orders on Ext.P3 as expeditiously as possible. Furthermore, the Court ordered that no coercive steps shall be initiated against the petitioner pursuant to the assessment order (Ext.P1) until such time as the appeal is decided. The specific issue regarding the rejection of the Section 80P deduction was not decided on merits by the High Court, as the matter was remitted to the appellate authority for consideration.
What were the facts?
The petitioner, The Vellattanjur Service Co-operative Bank Ltd., is a Primary Agricultural Credit Society. The assessing officer passed an assessment order on August 31, 2021, rejecting the petitioner's claim for deduction under Section 80P. The reason for rejection was the alleged lack of evidence that the petitioner satisfied the ingredients of a Primary Agricultural Credit Society as defined under the Co-operative Societies Act. The petitioner filed an appeal against this assessment order before the Commissioner of Income Tax (Appeals). The petitioner contended 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 passed 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, 1969? Assessee's Contentions: The petitioner argued that the assessment order was passed subsequent to the Supreme Court's judgment in Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others, and that this crucial judgment was not considered by the assessing officer. The petitioner sought to rely on this judgment to support its claim for deduction. 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?
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 31.08.2021. 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. 27873 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. 27873 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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