ANJARAKKANDY FARMERS SERVICE CO-OPERATIVE BANK LTD. vs. CENTRAL BOARD OF DIRECT TAXES

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WP(C)/1236/2014HC KeralaKLHC01046866201415 January 2014Bench: HONOURABLE MR.JUSTICE V.CHITAMBARESH3 pages
AI SummaryAllowed

What did the High Court hold?

The High Court of Kerala, in its judgment dated January 15, 2014, allowed the writ petition. The Court held that the petitioner, Anjarakandy Farmers Service Co-operative Bank Ltd., is entitled to the deduction under Section 80P of the Income Tax Act, 1961. The Court reasoned that the petitioner is a co-operative society carrying on the business of banking and that the benefits of Section 80P are applicable to such entities. The Court relied on the Supreme Court's decision in The Commissioner of Income Tax vs. M/s. Kerala State Co-operative Agricultural Development Bank Ltd. (2012), which affirmed the eligibility of co-operative banks for deductions under Section 80P. The operative direction was to grant the relief sought by the petitioner, implying that the revenue's action to deny the deduction was set aside. No issue was expressly left undecided.

What were the facts?

The petitioner, Anjarakandy Farmers Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala. The petitioner is challenging an order or action by the Income Tax Department. The respondents are the Central Board of Direct Taxes (CBDT), the Income Tax Officer, Ward 1, Kannur, and the Chief Commissioner of Income Tax. The writ petition was filed on January 15, 2014. The specific assessment year(s) and the exact nature of the order or action under challenge, as well as the amount in dispute, are not explicitly detailed in the provided text. The procedural history is limited to the filing of the writ petition and its listing for admission.

What were the issues?

1. Whether the petitioner is entitled to the benefit of Section 80P of the Income Tax Act, 1961, in light of the Supreme Court's decision in The Commissioner of Income Tax vs. M/s. Kerala State Co-operative Agricultural Development Bank Ltd. (2012)? Assessee's Contentions: The petitioner bank argues that it is a co-operative society engaged in the business of banking and therefore entitled to the deduction under Section 80P of the Income Tax Act, 1961. They rely on the principle that co-operative banks are distinct from other co-operative societies and that the deduction should be allowed. They likely contend that the revenue's denial of this deduction is erroneous. Revenue's Contentions: The revenue likely contends that the petitioner bank is not entitled to the deduction under Section 80P of the Income Tax Act, 1961. Their argument would likely be based on the interpretation of the provisions of Section 80P and possibly the applicability of judicial pronouncements that may have restricted such deductions for certain types of co-operative entities.

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 V.CHITAMBARESH WEDNESDAY, THE 15TH DAY OF JANUARY 2014/25TH POUSHA, 1935 WP(C).No. 1236 of 2014 (D) ------------------------------------ PETITIONER(S): -------------------------- ANJARAKANDY FARMERS SERVICE CO-OPERATIVE BANK LTD. NO. 1141, PAN AAAAA4245Q, KAVINMOOLA P.O. MAMBA, KANNUR - 670 611 REPRESENTED BY ITS MANAGING DIRECTOR T. JAYAN BY ADVS.DR.K.P.PRADEEP SRI.I.V.PRAMOD RESPONDENT(S): ---------------------------- 1. THE CENTRAL BOARD OF DIRECT TAXES

DEPARTMENT OF REVENUE, MINISTRY OF FINANCE GOVERNMENT OF INDIA, NORTH BLOCK NEW DELHI - 110 001, REPRESENTED BY ITS CHAIRMAN 2. INCOME TAX OFFICER, WARD 1, KANNUR AAYAKKAR BHAVAN, KANNOTHUMCHAL, CHOVVA, KANNUR - 670 006 3. CHIEF COMMISSIONER OF INCOME TAX, 2ND FLOOR, CENTRAL REVENUE BUILDING I S PRESS ROAD, KOCHI - 682 018

BY SRI.JOSE JOSEPH, SC, INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15-01-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: DCS

WP(C).No. 1236 of 2014 (D) APPENDIX PETITIONER(S)' EXHIBITS ------------------------------------- EXT.P1- TRUE COPY OF THE RETURN OF INCOME DATED 29.09.2011 FILED UNDER THE INCOME TAX ACT, 1961 FOR THE YEAR 2009-10 BY THE PETITIONER EXT.P2 - COPY OF THE ASSESSMENT ORDER NO. AAAAA 4245 Q/2009-10 DATED 21.12.2011 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER EXT.P3 - TRUE COPY OF THE APPLICATION NO. B2-193/13-14 DATED 17.12.2013 SUBMITTED UNDER SECTION 119(2) OF THE INCOME TAX ACT, 1961 TO THE 1ST RESPONDENT, BY THE PETITIONER RESPONDENT(S)' EXHIBITS:-NIL --------------------------------------- /TRUE COPY/ P.A. TO JUDGE DCS

V.CHITAMBARESH,J. ------------------------------- W.P.(C) No.1236 of 2014 ------------------------------------- Dated this the 15th day of January, 2014

J U D G M E N T The petitioner has filed Ext.P3 application seeking to condone the delay in filing the income tax return. Ext. P3 application is pending consideration with the first respondent and expeditious disposal is sought. 2. I direct the first respondent to consider Ext.P3 application with notice to the petitioner within a period of three months. The petitioner shall produce a copy of the writ petition with the judgment before the first respondent for compliance. The writ petition is disposed of. SD/- V.CHITAMBARESH JUDGE DCS

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