THE ELAVALLY SERVICE CO-OPERATIVE BANK LTD NO F-1456 vs. COMMISSIONER OF INCOME TAX

PDF · subscribers
WP(C)/24828/2021HC KeralaKLHC01062722202111 November 2021Author: 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 assessment order or the appeal. Instead, it directed the appellate authority (1st respondent) to consider and pass appropriate orders on the petitioner's pending appeal (Ext.P3) expeditiously. The Court acknowledged that the appeal was already filed and pending. Furthermore, the Court ordered that no coercive steps would be initiated against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The specific finding on the Section 80P deduction and the applicability of the Supreme Court judgment were left to be decided by the appellate authority.

What were the facts?

The petitioner, Elavally Service Co-operative Bank Ltd., a Primary Agricultural Credit Society, challenged an assessment order dated April 29, 2021. The assessing officer rejected the bank's claim for deduction under Section 80P, stating there was no evidence that the petitioner satisfied the ingredients of a Primary Agricultural Credit Society as defined by the Kerala Co-operative Societies Act. The petitioner argued before the appellate authority (1st respondent) that the Supreme Court's judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, rendered after the assessment order, was not considered by the assessing officer. The petitioner filed an appeal (Ext.P3) which was pending.

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. Assessee's contentions: The petitioner argued that the assessment order was passed without considering the Supreme Court's judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, which was delivered subsequent to the assessment order. The petitioner contended that this judgment was relevant to their claim for deduction under Section 80P. Revenue's contentions: The judgment does not record any specific contentions made by the revenue in response to the petitioner's arguments regarding the Section 80P deduction or the applicability of the Supreme Court 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 THURSDAY, THE 11TH DAY OF NOVEMBER 2021 / 20TH KARTHIKA, 1943 WP(C) NO. 24828 OF 2021 PETITIONER: THE ELAVALLY SERVICE CO-OPERATIVE BANK LTD NO F-1456 H.O.VAKA, THRISSUR-680602,REPRESENTED BY ITS SECRETARY. BY ADV P.C.SASIDHARAN RESPONDENTS: 1 COMMISSIONER OF INCOME TAX NATIONAL FACELESS APPEAL CENTRE, DELHI-110001. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, O/O THE PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, MANANCHIRA, KOZHIKODE, KERALA-673001. 3 THE INCOME TAX OFFICER, WARD 1 & TPS, CITY PLAZA, INCOME TAX OFFICE, WEST NADA, GURUVAYOOR, KERALA-680101. OTHER PRESENT: SRI.JOSE JOSEPH,SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.11.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 24828 OF 2021 2 BECHU KURIAN THOMAS, J .............................................… W.P.(C) NO.24828 OF 2021 …........................................ Dated this the 11th day of November, 2021

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 29.04.2021. 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.

2.

While assailing the assessment order before the 1st 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.

WP(C) NO. 24828 OF 2021 3

3.

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.

4.

Accordingly, there will be a direction to the 1st respondent to consider and pass appropriate orders on Ext.P3, as expeditiously as possible.

5.

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 AJM

WP(C) NO. 24828 OF 2021 4

Appendix — schedule of exhibits
APPENDIX OF WP(C) 24828/2021 PETITIONER’S EXHIBITS : Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 29/04/2021. Exhibit P2 TRUE COPY OF DEMAND NOTICE DATED 29/04/2021. Exhibit P3 TRUE COPY OF THE APPEAL DATED 04/05/2021. Exhibit P4 TRUE COPY OF THE ACKNOWLEDGMENT OF RECEIPT OF FORM EVIDENCING OF FILING APPEAL DATED 04/05/2021. Exhibit P5 TRUE COPY OF THE STAY PETITION DATED 19/5/2021. Exhibit P6 TRUE COPY OF THE ORDER ISSUED BY THE 3RD RESPONDENT DATED 28/10/2021. Exhibit P7 TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER DATED 03/11/2021 BEFORE THE 2ND RESPONDENT. Exhibit P8 TRUE COPY OF THE JUDGMENT DATED 1/7/2019 IN W.A.1536 OF 2019. Exhibit P9 TRUE COPY OF THE JUDGMENT IN W.P(C)NO.22073/2021 DATED 13/10/2021. RESPONDENT’S EXHIBITS : NIL AJM //TRUE COPY// PA TO JUDGE

More judgments on Section 80P

All 5,069 judgments and leading authorities on Section 80P →

Recent GST High Court judgments

Search GST case law →