THE SREEKRISHNAPURAM SERVICE CO-OPERATIVE BANK LTD. vs. THE ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER

PDF · subscribers
WP(C)/4825/2023HC KeralaKLHC01011589202314 February 2023Bench: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala did not decide on the merits of the case concerning the eligibility for deduction under Section 80P. Instead, it noted that the petitioner had already availed the statutory remedy by filing an appeal (Ext.P2) before the Appellate Authority. Therefore, the Court disposed of the writ petition by directing the Appellate Authority to consider and pass orders on the appeal at the earliest. The Court also granted interim relief by directing the respondents not to take any coercive steps against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The core issue of eligibility for Section 80P deduction was left to be decided by the Appellate Authority.

What were the facts?

The petitioner, Sreekrishnapuram Service Co-operative Bank Ltd., is a Primary Agricultural Credit Co-operative Society. The Assessing Officer passed an order (Ext.P1) rejecting the petitioner's claim for deduction under Section 80P of the Income Tax Act. The rejection was based on the finding that the petitioner did not satisfy the ingredients of a Primary Agricultural Credit Society as defined under the Kerala Co-operative Societies Act. The petitioner has filed an appeal (Ext.P2) against this assessment order, which is pending before the Appellate Authority (2nd respondent). The petitioner relies on the Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485 to challenge the assessment.

What were the issues?

1. Whether the petitioner, as a Primary Agricultural Credit Co-operative Society, is eligible for deduction under Section 80P of the Income Tax Act, 1961, based on the satisfaction of ingredients as contemplated under the Kerala Co-operative Societies Act, 1969. Assessee's Contention: The petitioner argues that it is a Primary Agricultural Credit Co-operative Society and is entitled to the deduction under Section 80P. It relies on the Supreme Court's decision in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485 to support its claim. Revenue's Contention: The revenue, through the Assessing Officer, rejected the deduction on the grounds that the petitioner failed to provide evidence to satisfy the ingredients of a Primary Agricultural Credit Society as per the Kerala Co-operative Societies Act. No specific authorities or precedents were mentioned by 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

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI TUESDAY, THE 14TH DAY OF FEBRUARY 2023 / 25TH MAGHA, 1944 WP(C) NO. 4825 OF 2023 PETITIONER: THE SREEKRISHNAPURAM SERVICE CO-OPERATIVE BANK LTD. F 1213, SREEKRISHNAPURAM P.O., PALAKKAD- 679513, REPRESENTED BY ITS SECRETARY, ULLASKUMAR.C. BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA RESPONDENTS: 1 THE ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER NATIONAL E-ASSESSMENT CENTRE, DELHI – 110001. 2 NATIONAL FACELESS APPEAL CENTRE, DELHI - 110001, REPRESENTED BY THE COMMISSIONER OF INCOME TAX (APPEALS). SRI. JOSE JOSEPH, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.02.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 4825 OF 2023 2 T.R. RAVI, J. -------------------------------------------- W.P.(C) No.4825 of 2023 -------------------------------------------- Dated this the 14th day of February, 2023 JUDGMENT The petitioner is a Primary Agricultural Credit Co-operative Society registered under the Kerala Co-operative Societies Act, 1969. The petitioner has been assessed for tax as per Ext.P1 order rejecting the claim for deduction made under Section 80P of Income Tax Act on the ground that there was no evidence to show that the petitioner has satisfied the ingredients of the Primary Agricultural Credit Society as contemplated under the Kerala Co-operative Societies Act. Reliance is placed on the judgment of the Hon’ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485 to challenge the assessment order. The petitioner has preferred Ext.P2 appeal and the same is pending before the 2nd respondent. Since the petitioner has already availed the statutory

WP(C) NO. 4825 OF 2023 3 remedy, this writ petition is disposed of directing the Appellate Authority to consider the appeal and pass orders on the same at the earliest. The respondents shall not take any coercive steps against the petitioner pursuant to Ext.P1 assessment order till the disposal of Ext.P2 appeal. Sd/- T.R.RAVI JUDGE mpm

WP(C) NO. 4825 OF 2023 4 APPENDIX OF WP(C) 4825/2023 PETITIONER’S EXHIBITS Exhibit P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2021-22 DTD. 20-12-2022. Exhibit P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 19-01-2023. Exhibit P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 19-01-2023.

More judgments on Section 80P

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

Latest GST High Court judgments

Search GST case law →