KUMARAMPUTHUR SERVICE CO-OPERATIVE BANK LTD. NO.P-373 vs. THE ADDITIONAL/JOINT DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER

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WP(C)/21200/2021HC KeralaKLHC01054473202120 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 assessment order or the appeal. Instead, the Court deemed it appropriate to direct the Appellate Authority (the 3rd respondent, Commissioner of Income Tax (Appeals)) to consider the appeal filed by the petitioner in a time-bound manner. The Court ordered the 3rd respondent to consider and pass appropriate orders on the petitioner's appeal (Ext.P3) as expeditiously as possible. Furthermore, the Court directed that no coercive steps shall be initiated pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The issue of whether the Assessing Officer correctly rejected the Section 80P deduction was left to be decided by the appellate authority.

What were the facts?

The petitioner, Kumaranputhur Service Co-operative Bank Ltd., is a Primary Agricultural Credit Society. The Assessing Officer passed an assessment order on August 27, 2021, rejecting the petitioner's claim for deduction under Section 80P. The reason cited was the lack of evidence demonstrating 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 against this assessment order before the Commissioner of Income Tax (Appeals). The petitioner contended that the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, which was rendered prior to 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 Supreme Court's judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax? 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 Ltd. v. Commissioner of Income Tax, and 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 response to the writ petition.

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 WEDNESDAY, THE 20TH DAY OF OCTOBER 2021 / 28TH ASWINA, 1943 WP(C) NO. 21200 OF 2021 PETITIONER: KUMARAMPUTHUR SERVICE CO-OPERATIVE BANK LTD. NO.P-373 MANNARKKAD COLLEGE P.O., KUMARAMPUTHUR PALAKKAD-678 583, REPRESENTED BY ITS SECRETARY-IN-CHARGE, VIJAYAKUMAR K.K. BY ADV.HARISANKAR V. MENON ADV.MEERA V.MENON RESPONDENTS: 1 THE ADDITIONAL/JOINT DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER NATIONAL E-ASSESSMENT CENTRE, DELHI-110 001. 2 NATIONAL FACELESS APPEAL CENTRE DELHI-110 001, REPRESENTED BY THE PRINCIPAL CHIEF COMMISSIONER. 3 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, THRISSUR-680 001. ADV.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.10.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.21200/21 -:2:- BECHU KURIAN THOMAS, J. ----------------------------------------- W.P.(C) No.21200 of 2021 ---------------------------------------- Dated this the 20th day of October, 2021

JUDGMENT Petitioner is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. Ext.P1 order of assessment was issued against the petitioner on 27.08.2021. 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 Kerala Co-operative Societies Act.

2.

While assailing the assessment order before the 3rd 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 officer though the assessment order was rendered subsequent to the Supreme Court Judgment.

3.

Since the petitioner has already preferred an appeal as Ext.P3 and the same is pending consideration before the 3rd 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 3rd 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 vps

Appendix — schedule of exhibits
APPENDIX OF WP(C) 21200/2021 PETITIONER'S/S' EXHIBITS EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE IST RESPONDENT FOR THE YEAR 2018-19 DATED 27.8.2021. EXHIBIT P2 COPY OF WEB PAGE SCREEN SHOT EVIDENCING THE INABILITY TO FILE THE APPEAL. EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DATED 25.9.2021. EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE IST RESPONDENT DATED 22.9.2021. EXHIBIT P5 COPY OF COVERING LETTER SUBMITTED BY THE PETITIONER'S CHARTERED ACCOUNTANT DATED 25.9.2021. EXHIBIT P6 COPY OF JUDGMENT OF THIS HON'BLE COURT IN WPC NO.9007/2021 DATED 16.7.2021.

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