CHALISSERY SERVICE CO-OPERATIVE BANK LTD. vs. ADDITIONAL / JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX

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WP(C)/2152/2022HC KeralaKLHC01004906202221 January 2022Author: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court did not decide the merits of the case. Instead, it noted that the petitioner had already preferred an appeal (Ext.P2) before the 2nd respondent (Appellate Authority) and that this appeal was pending consideration. 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 to consider and pass appropriate orders on Ext.P2 expeditiously. Additionally, the Court ordered that no coercive steps shall be initiated pursuant to Ext.P1 assessment order until such time as the appeal is decided. The issue of whether the deduction under Section 80P was rightly rejected was left to be decided by the Appellate Authority.

What were the facts?

The petitioner, Chalissery Service Co-operative Bank Ltd., is a Primary Agricultural Credit Society. The Assessing Officer issued an assessment order on September 28, 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 per the Co-operative Societies Act. The petitioner filed an appeal before the Appellate Authority (2nd respondent). In the appeal, the petitioner argued that 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 rendered prior to the assessment order.

What were the issues?

1. Whether the Assessing Officer erred in rejecting the deduction under Section 80P by failing to consider the ingredients of a Primary Agricultural Credit Society as contemplated under the Co-operative Societies Act, 1969, and the relevant Supreme Court judgment? Assessee's Contentions: The petitioner argued that the assessment order was passed without considering the binding judgment of the Supreme Court in Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others. The petitioner contended that this judgment should have been considered by the Assessing Officer, especially since the assessment order was issued after the Supreme Court's decision. 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
WP(C) NO. 2152 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. 2152 OF 2022 PETITIONER/S: CHALISSERY SERVICE CO-OPERATIVE BANK LTD. P-579, CHALISSERY, PALAKKAD-679536, REPRESENTED BY ITS SECRETARY, SHRI. PUSHPAKARAN VALIYAVEETUVALAPPIL KANDU. BY ADVS. T.M.SREEDHARAN (SR.) V.P.NARAYANAN NISHA JOHN RESPONDENT/S: 1 ADDITIONAL / JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL STADIUM, DELHI-110003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, JAWAHARLAL STADIUM, DELHI-110003. SRI.CHRISTOPHER ABRAHAM, SC 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. 2152 OF 2022 2 BECHU KURIAN THOMAS, J. ======================== W.P.(C) No.2152 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.

3.

Since the petitioner has already preferred an appeal

WP(C) NO. 2152 OF 2022 3 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 pursuant to Ext.P1 assessment order. The writ petition is disposed of as above. BECHU KURIAN THOMAS

JUDGE jm/

WP(C) NO. 2152 OF 2022 4

Appendix — schedule of exhibits
APPENDIX OF WP(C) 2152/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER AND DEMAND NOTICE ALONG WITH COMPUTATION OF INCOME FOR AY 2014-15 DATED 28.9.2021. Exhibit P2 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 25.10.2021 SUBMITTED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEAR 2014-15. Exhibit P3 TRUE COPY OF STAY PETITION DATED 25.10.2021 FOR AY 2015-16 SUBMITTED BEFORE THE 2ND RESPONDENT.

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