THE CHITTATTUKARA SERVICE CO-OPERATIVE BANK LTD NO.P.1642, vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

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WP(C)/23359/2021HC KeralaKLHC01059487202128 October 2021Author: 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 (Ext.P3) before the first respondent, the Commissioner of Income Tax (Appeals), which was pending. Therefore, the Court deemed it appropriate to dispose of the writ petition by directing the Appellate Authority to consider the pending appeal in a time-bound manner. The Court directed the first respondent to consider and pass appropriate orders on Ext.P3 expeditiously. Furthermore, the Court ordered that no coercive steps would be initiated pursuant to the assessment order (Ext.P1) until the disposal of the appeal. No specific finding was made on the Section 80P deduction or the applicability of the Supreme Court judgment.

What were the facts?

The petitioner, Chittattukara Service Co-operative Bank Ltd., a Primary Agricultural Credit Society, is challenging an assessment order dated April 20, 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 appealed this order to the Commissioner of Income Tax (Appeals). The petitioner argued that the Supreme Court judgment in Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others [2021 (1) KLT 485], which was rendered after the assessment order, was not considered by the assessing officer.

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 Supreme Court judgment in Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others [2021 (1) KLT 485]. Revenue's contentions: The judgment records no specific contentions from the revenue regarding the issues raised by the assessee.

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 28TH DAY OF OCTOBER 2021 / 6TH KARTHIKA, 1943 WP(C) NO. 23359 OF 2021 PETITIONER: THE CHITTATTUKARA SERVICE CO-OPERATIVE BANK LTD NO.F.1642, CHITTATTUKARA.P.O, THRISSUR-680511, REPRESENTED BY ITS SECRETARY. BY ADV P.C.SASIDHARAN RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, DELHI-110 001. 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 1 & TPS, CITY PLAZA, INCOME TAX OFFICE, WEST NADA, GURUVAYOOR, KERALA-680 101. BY ADV JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28.10.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 23359 OF 2021 2 BECHU KURIAN THOMAS, J =========================== W.P.(C) No.23359 of 2021 --------------------------------- Dated this the 28 th day of October, 2021

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 20.04.2021. 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.

2.

While assailing the assessment order 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 the assessing officer though the assessment order was rendered subsequent to the Supreme Court

WP(C) NO. 23359 OF 2021 3 Judgment.

3.

Since the petitioner has already preferred an appeal as Ext.P3 and the same is 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 appeal 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, as expeditiously as possible.

5.

Till the disposal of the appeal, no coercive steps shall be initiated pursuant to Ext.P1 assessment order. The writ petition is disposed of as above. BECHU KURIAN THOMAS, JUDGE AMV/28/10//2021

WP(C) NO. 23359 OF 2021 4

Appendix — schedule of exhibits
APPENDIX PETITIONERS EXHIBITS : EXT.P1 TRUE COPY OF THE ASSESSEMENT ORDER DATED 20.04.2021 EXT.P2 TRUE COPY OF DEMAND NOTICE DATED 20.04.2021 EXT.P3 TRUE COPY OF THE APPEAL DATED 29.04.2021 EXT.P4 TRUE COPY OF THE ACKNOWLEDGMENT OF RECEIPT OF FORM EVIDENCING OF FILING APPEAL DATED 29.04.2021 EXT.P5 TRUE COPY OF THE STAY PETITION DATED 20.05.2021 EXT.P6 TRUE COPY OF THE ORDER ISSUED BY THE 3RD RESPONDENT DATED 18.10.2021 EXT.P7 TRUE COPY OF STAY PETITION FILED BY THE PETITIONER DATED 22.10.2021 BEFORE THE 2ND RESPONDENT EXT.P8 TRUE COPY OF THE JUDGMENT DATED 01.07.2019 IN W.A. 1536 OF 2019 EXT.P9 TRUE COPY OF THE JUDGMENT IN W.P.(C) NO. 22073/2021 DATED 13.10.2021 RESPONDENTS EXHIBITS : NIL TRUE COPY

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