M/S. CHALISSEY SERVICE CO-OPERATIVE BANK LTD.P-579, vs. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX /INCOME TAX OFFICER,

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WP(C)/2121/2022HC KeralaKLHC01004842202221 January 2022Author: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala did not decide on the merits of the assessment order or the appeal. Instead, it directed the 2nd respondent, the Commissioner of Income Tax (Appeals), to consider and pass appropriate orders on the petitioner's appeal (Ext.P2) expeditiously. The Court also ordered that no coercive steps shall be initiated against the petitioner pursuant to the assessment order (Ext.P1) until the appeal is decided. The judgment's ratio is that when an appeal is pending and a relevant Supreme Court judgment exists, the appellate authority should be directed to consider the appeal promptly, and interim protection should be granted. No issue was expressly left undecided; the court chose to defer to the appellate process.

What were the facts?

The petitioner, M/s. Chalissery Service Co-operative Bank Ltd., a Primary Agricultural Credit Society, received an assessment order dated 28.09.2021 from the Assessing Officer. The order rejected the petitioner's claim for deduction under Section 80P, stating there was no evidence that the petitioner fulfilled the criteria of a Primary Agricultural Credit Society under the Co-operative Societies Act. The petitioner filed an appeal against this assessment order before the Commissioner of Income Tax (Appeals). The petitioner argued that the Assessing Officer failed to consider the Supreme Court's judgment in Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others, despite the assessment order being issued 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 contemplated under the Co-operative Societies Act, 1969. Assessee's Contentions: - The Assessing Officer failed to consider the Supreme Court judgment in Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others, which was delivered prior to the assessment order. Revenue's Contentions: - No specific contentions were recorded for the revenue 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
WP(C) NO. 2121 OF 2022 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS FRIDAY, THE 21ST DAY OF JANUARY 2022 / 1ST MAGHA, 1943 WP(C) NO. 2121 OF 2022 PETITIONER/S: M/S. CHALISSEY SERVICE CO-OPERATIVE BANK LTD.P-579, CHALISSERY, PALAKKAD-679 536, REPRESENTED BY ITS SECRETARY, SHRI.,PUSHPAKARAN VALIYAVEETUVALAPPIL KANDU. BY ADVS. T.M.SREEDHARAN (SR.) NISHA JOHN V.P.NARAYANAN RESPONDENT/S: 1 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX /INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, INCOME TX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.4501, 2ND FLOOR, E-RAMP, JAWAHARLALA STADIUM, DELHI-110 003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, JAWAHARLAL STADIUM, DELHI-110 003. SRI.JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.01.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 2121 OF 2022 2 BECHU KURIAN THOMAS, J. ======================== W.P.(C) No.2121 of 2022 ------------------------------------------------ Dated this the 21st day of January, 2022

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 28.09.2021. 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.

WP(C) NO. 2121 OF 2022 3

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 directing the Appellate Authority to consider the appeal in a time bound manner.

4.

Accordingly there will a direction to the 2nd respondent to consider and pass appropriate orders on Ext.P2, as expeditiously as possible.

5.

Till such time, no coercive steps shall be initiated against the petitioner pursuant to Ext.P1 assessment order. The writ petition is disposed of as above. BECHU KURIAN THOMAS

JUDGE jm/

WP(C) NO. 2121 OF 2022 4

Appendix — schedule of exhibits
APPENDIX OF WP(C) 2121/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER AND DEMAND NOTICE ALONG WITH COMPUTATION OF INCOME FOR AY 2015-16 DATED 28.09.2021. Exhibit P2 TRUE COPY OF THE MEMORANDUM OF APPEAL FOR THE ASSESSMENT YEAR 2015-16 DATED 25.10.2021 SUBMITTED BEFORE THE 2ND RESPONDENT. Exhibit P3 TRUE COPY OF THE STAY PETITION FOR THE ASSESSMENT YEAR 2015-16 DATED 25.10.2021 SUBMITTED BEFORE THE 2ND RESPONDENT.

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