KARAMUCK SERVICE CO-OPERATIVE BANK LTD NO.16 vs. THE COMMISSIONER OF INCOME TAX (APPEALS)
What did the High Court hold?
The High Court of Kerala, while acknowledging the pendency of the petitioner's appeal before the appellate authority, directed the appellate authority to consider the appeal expeditiously. The Court did not decide on the merits of the Section 80P deduction claim or the applicability of the Mavilayi Service Cooperative Bank judgment. The operative direction was to ensure a time-bound disposal of the appeal. The Court also granted a stay on coercive steps pursuant to the assessment order until the disposal of the appeal. No issue was expressly left undecided, as the matter was disposed of on procedural grounds.
What were the facts?
The petitioner, Karamuck Service Co-operative Bank Ltd, a Primary Agricultural Credit Society, challenged an assessment order dated May 31, 2021. The assessing officer rejected the petitioner's claim for deduction under Section 80P, stating that there was no evidence that the petitioner met the criteria of a Primary Agricultural Credit Society under the Co-operative Societies Act. The petitioner argued that the assessing officer failed to consider the Supreme Court's judgment in Mavilayi Service Cooperative Bank and Others v. Commissioner of Income Tax, Calicut and Others, despite the assessment order being passed after this judgment. The petitioner had already filed an appeal against the assessment order, which was pending before the appellate authority.
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 Cooperative Bank and Others v. Commissioner of Income Tax, Calicut and Others. The assessee contended that the assessing officer's order was flawed as it did not take into account the binding precedent set by the Supreme Court in the Mavilayi Service Cooperative Bank case, which was delivered prior to the assessment order. The assessee argued that this omission rendered the assessment order unsustainable. The revenue did not record any specific arguments in the judgment provided.
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 31.05.2021. 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 3rd respondent, petitioner has sought to canvass that the judgment of the Supreme Court in Mavilayi Service Cooperative 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.P4 and the same is pending consideration before the 3rd
WP(C) NO. 22073 OF 2021 3 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.
Accordingly, there will be a direction to the 3rd respondent to consider and pass appropriate orders on Ext.P4, as expeditiously as possible.
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 RKM
WP(C) NO. 22073 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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