THE MUNDUR SERVICE CO-OPERATIVE BANK LTD. vs. THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/
What did the High Court hold?
The High Court of Kerala, while acknowledging the petitioner's appeal (Ext.P3) pending before the 3rd respondent (Commissioner of Income Tax (Appeals)), deemed it appropriate to dispose of the writ petition by directing the Appellate Authority to consider the appeal expeditiously. The Court did not decide on the merits of the Section 80P deduction claim or the assessing officer's reasoning. The operative direction was for the 3rd respondent to consider and pass appropriate orders on Ext.P3 as expeditiously as possible. Additionally, the Court ordered that no coercive steps shall be initiated against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. No issue was expressly left undecided; the Court chose to defer the decision to the appellate authority.
What were the facts?
The petitioner, The Mundur Service Co-operative Bank Ltd., is a Primary Agricultural Credit Society. The Assessing Officer passed an assessment order on February 26, 2021, rejecting the petitioner's claim for deduction under Section 80P. The reason for rejection was the alleged lack of evidence that the petitioner satisfied the ingredients of a Primary Agricultural Credit Society as defined under the Kerala Co-operative Societies Act. The petitioner challenged this assessment order before the Commissioner of Income Tax (Appeals), the 3rd respondent. The petitioner argued that the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, delivered prior to the assessment order, was not considered by the assessing officer.
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 subsequent to the Supreme Court's judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, and this crucial judgment, which would have supported their claim, was not considered by the assessing officer. Revenue's Contentions: The judgment does not record any specific contentions made by the revenue in response to the writ petition. The revenue was represented by counsel, but their arguments are not detailed in the provided text.
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 26.02.2021. 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 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.
Since the petitioner has already preferred an appeal as Ext.P3 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 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 vps
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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