KORATTY SERVICE CO-OPERATIVE BANK LIMITED NO.R.314 vs. THE INCOME TAX OFFICER,

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WP(C)/16566/2022HC KeralaKLHC01033413202223 May 2022Author: 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 filed an appeal (Ext.P2) before the 3rd respondent (Appellate Authority) and that this appeal 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 3rd respondent was directed to dispose of Ext.P2 expeditiously, within six months from the date of receipt of a copy of the judgment, after providing the petitioner an opportunity of hearing. Coercive proceedings against the petitioner pursuant to the assessment order (Ext.P1) were to be kept in abeyance until the appeal was decided.

What were the facts?

The petitioner, Koratty Service Co-operative Bank Limited, a Primary Agricultural Credit Society, received an assessment order dated 29.03.2022. 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 Kerala Co-operative Societies Act. The petitioner appealed this order to the 3rd respondent, the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. In the appeal, the petitioner argued that the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax [2021 (1) KLT 485] was not considered by the assessing officer, despite the assessment order being issued after this judgment.

What were the issues?

1. Whether the assessing officer erred by not considering the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax [2021 (1) KLT 485] when passing the assessment order dated 29.03.2022, particularly concerning the deduction under Section 80P of the Income Tax Act, 1961, for a Primary Agricultural Credit Society. Assessee's Contentions: The petitioner argued that the assessment order was passed subsequent to the Supreme Court's decision 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 relied on the Supreme Court judgment. Revenue's Contentions: The judgment does not record any specific contentions from the revenue regarding this issue.

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 25TH DAY OF MAY 2022 / 4TH JYAISHTA, 1944 W.P.(C) NO.16566 OF 2022 PE TITIONER: KORATTY SERVICE CO-OPERATIVE BANK LIMITED, KORATTY, THRISSUR, PIN-680 308 REPRESENTED BY ITS SECRETARY SRI. SANIL KUMAR N.G. BY ADVS. K.S.HARIHARAN NAIR G.REMADEVI P.F.JOY RAJATH R NATH(K/1695/2019) HARIMA HARIHARAN RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD 2 (2), AAYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, THRISSUR, PIN-680 001. 2 THE ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI-110 001. 3 COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, DELHI-110 001. SRI. JOSE JOSEPH, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.05.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: -2- W.P.(C) NO.16566 OF 2022 BECHU KURIAN THOMAS, J. ------------------------------------------ W.P.(C) No.16566 of 2022 ------------------------------------------ Dated this the 25th day of May, 2022

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 29.03.2022. 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 petitioner has already preferred an appeal as -3- W.P.(C) NO.16566 OF 2022 Ext.P2 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. Accordingly, there will be a direction to the 3rd respondent to dispose of Ext.P2 appeal, as expeditiously as possible, at any rate, within a period of six months from the date of receipt of a copy of this judgment, after granting an opportunity of hearing to the petitioner. Till then, all coercive proceedings against the petitioner pursuant to Ext.P1 shall be kept in abeyance. BECHU KURIAN THOMAS JUDGE bpr

-4- W.P.(C) NO.16566 OF 2022

Appendix — schedule of exhibits
APPENDIX PETITIONER'S EXHIBITS EXHIBIT P1 COPY OF ASSESSMENT ORDER DATED 29.03.2022 ISSUED BY THE 2ND RESPONDENT FOR THE ASSESSMENT YEAR 2013-14. EXHIBIT P2 COPY OF APPEAL MEMORANDUM FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DATED 26.04.2022 AGAINST EXT.P1. EXHIBIT P3 COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DATED 26.04.2022 IN EXT.P2 APPEAL.

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