THE VELLATTANJUR SERVICE CO-OPERATIVE BANK LTD NO: 3906 vs. THE COMMISSIONER OF INCOME TAX(APPELAS)
What did the High Court hold?
The High Court of Kerala did not decide the merits of the assessment order or the appeal. Instead, the Court deemed it fit to dispose of the writ petition by directing the Appellate Authority (the 1st respondent) to consider the appeal filed by the petitioner (Ext.P3) in a time-bound manner. The Court directed the 1st respondent to consider and pass appropriate orders on Ext.P3 as expeditiously as possible. Furthermore, the Court ordered that no coercive steps shall be initiated against the petitioner pursuant to Ext.P1 assessment order until the disposal of the appeal. The specific finding on the eligibility for deduction under Section 80P was left to be decided by the appellate authority.
What were the facts?
The petitioner, The Vellattanjur Service Co-operative Bank Ltd., a Primary Agricultural Credit Society, received an assessment order dated 21.04.2021. The assessing officer rejected the petitioner's claim for deduction under Section 80P, stating that the petitioner did not satisfy the ingredients of a Primary Agricultural Credit Society as defined by the Kerala Co-operative Societies Act. The petitioner appealed this assessment order before the first respondent, the Commissioner of Income Tax (Appeals). In their appeal, the petitioner argued that the assessing officer failed to consider the Supreme Court's judgment in Mavilayi Service Cooperative Bank Ltd. v. Commissioner of Income Tax, which was rendered prior to the assessment order.
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 Kerala Co-operative Societies Act, 1969. Assessee's contentions: The petitioner argued that the assessment order was passed without considering the Supreme Court's judgment in Mavilayi Service Cooperative Bank Ltd. v. Commissioner of Income Tax [2021 (1) KLT 485], despite the assessment order being issued subsequent to this judgment. The petitioner sought to rely on this Supreme Court decision. 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?
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 Kerala Co-operative Societies Act, 1969. Ext.P1 order of assessment was issued against the petitioner on 21.04.2021. 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 Kerala Co- operative Societies Act.
While assailing the assessment order before the 1st respondent, petitioner has sought to canvass that the judgment of the Supreme Court in Mavilayi Service Cooperative Bank Ltd. v. Commissioner of Income Tax
WP(C) NO. 25647 OF 2021 3 [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.P3 and the same is pending consideration before the 1st 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 1st respondent to consider and pass appropriate orders on Ext.P3, as expeditiously as possible.
Till the disposal of the appeal, 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. 25647 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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