KODUNGALLUR TALUK PRIMARY CO-OPERATIVE AGRICULTURAL RURAL DEVELOPMENT BANK LTD vs. ADDITIONAL./JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER

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WP(C)/13393/2021HC KeralaKLHC01035652202113 September 2021Author: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court noted that the petitioner had already preferred an appeal before the Commissioner of Income Tax (Appeals) and that the appeal was pending. Therefore, the Court deemed it fit to dispose of the writ petition by directing the Appellate Authority to consider the appeal in a time-bound manner. The Court directed the 2nd respondent (Commissioner of Income Tax (Appeals)) to consider and pass appropriate orders on the petitioner's appeal (Ext.P2) expeditiously, at any rate, within a period of six months from the date of receipt of a copy of the judgment. The Court clarified that the Appellate Authority shall not insist on the deposit of 20% of the amount in dispute, considering the nature of the plea raised by the petitioner. Furthermore, no coercive steps shall be initiated pursuant to the assessment order (Ext.P1) until the appeal is decided. The judgment did not decide the merits of the Section 80P claim or the applicability of the Supreme Court judgment.

What were the facts?

The petitioner, Kodungallur Taluk Primary Co-operative Agricultural Rural Development Bank Ltd., is a Primary Agricultural Credit Society. The Assessing Officer passed an assessment order dated 10.04.2021, rejecting the petitioner's claim for deduction under Section 80P. The rejection was based on the ground that the petitioner did not satisfy the ingredients of a Primary Agricultural Credit Society as contemplated under the Co-operative Societies Act. The petitioner filed an appeal before 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] was not considered by the assessing officer, 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 per the Co-operative Societies Act. 2. Whether the Assessing Officer failed to consider the binding precedent of the Supreme Court judgment in Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others [2021 (1) KLT 485] while passing the assessment order. Assessee's contentions: The petitioner argued that the Assessing Officer did not consider 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 relevant to their claim for deduction under Section 80P, even though the assessment order was passed subsequent to this judgment. Revenue's contentions: No specific contentions for the revenue are recorded in the judgment.

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 MONDAY, THE 13TH DAY OF SEPTEMBER 2021 / 22ND BHADRA, 1943 WP(C) NO. 13393 OF 2021 PETITIONER : KODUNGALLUR TALUK PRIMARY CO-OPERATIVE AGRICULTURAL RURAL DEVELOPMENT BANK LTD., NO. R 1353, P.O KODUNGALLUR 680 664, THRISSUR DISTRICT REPRESENTED BY ITS SECRETARY SHRI SHOUKATHALI K.K BY ADVS. T.M.SREEDHARAN (SR.) V.P.NARAYANAN ALAN PRIYADARSHI DEV RESPONDENTS : 1 ADDITIONAL./JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER, INCOME TAX OFFICER, NATIONAL E- ASSESSMENT CENTRE, NEW DELHI - 110 001 2 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, NEW DELHI - 110 001 BY ADVS. SRI.P.K.RAVINDRANATHA MENON (SR.) SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13.09.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 13393 OF 2021 2 BECHU KURIAN THOMAS, J. =-=-=-=-=-=-=-=-=-=-=-=-=-= W.P.(C).No.13393 of 2021 =-=-=-=-=-=-=-=-=-=-=-=-=-= Dated this the 13th day of September, 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 10.04.2021. 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 2nd 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.

3.

Since the petitioner has already preferred an appeal as Ext.P2 and the same is pending consideration before the 2nd respondent, I deem it fit that this writ petition be disposed of WP(C) NO. 13393 OF 2021 3 directing the Appellate Authority to consider the appeal in a time bound manner.

Accordingly there will a direction to the 2nd respondent to consider and pass appropriate orders on Ext.P2, as expeditiously as possible, at any rate, within a period of six months from the date of receipt of a copy of this judgment. It is clarified that the Appellate Authority shall not insist on deposit of 20% of the amount in dispute considering the nature of the case that has been pleaded by the petitioner. Till such time, 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. 13393 OF 2021 4

Appendix — schedule of exhibits
APPENDIX OF WP(C) 13393/2021 PETITIONER'S EXHIBITS : Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER AND DEMAND NOTICE DATED 10-04-2021 ALONG WITH COMPUTATION OF INCOME ALONG WITH DEMAND NOTICE PASSED BY THE 1ST RESPONDENT FOR AY-2018-19 Exhibit P2 TRUE COPY OF THE MEMORANDUM OF APPEALS E- FILED DATED 29-04-2021 FOR THE ASSESSMENT YEAR 2018-19 FILED BEFORE THE 2ND RESPONDENT Exhibit P3 TRUE COPY OF THE STAY PETITION DATED 19- 04-2021 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT.

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