COCHIN NAVAL BASE CIVILIAN EMPLOYEES CO-OPERATIVE SOCIETY LTD.NO.4146 V. THE INCOME TAX OFFICER WARD -2

WP(C)/16867/2021

AI Insights

The case involves the Cochin Naval Base Civilian Employees Cooperative Society Ltd., which contested an assessment order rejecting its claim for deduction under Section 80P of the Income Tax Act. The assessment order, issued on April 6, 2021, claimed that the society did not meet the criteria of a Primary Agricultural Credit Society as required under the Kerala Co-operative Societies Act. The society appealed the assessment, citing a relevant Supreme Court judgment that was allegedly overlooked in the assessment. The High Court of Kerala, upon hearing the writ petition, directed the appellate authority to expedite the consideration of the appeal and stay any coercive actions based on the assessment order until the appeal is resolved.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 751629 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 02-12-2021
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Cooperative Bank Ltd. v. Commissioner of Income Tax [2021 (1) KLT 485]
• Laws Referred To: Income Tax Act, Kerala Co-operative Societies Act, 1969
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH; CHRISTOPHER ABRAHAM
• Assessee Lawyers: M SASINDRAN INDUKALADHARAN
• Keywords: Appeal; Assessment Order; Deduction; Income Tax; Primary Agricultural Credit Society; Stay Petition
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS THURSDAY, THE 2ND DAY OF DECEMBER 2021 / 11TH AGRAHAYANA, 1943 WP(C) NO. 16867 OF 2021 PETITIONER : COCHIN NAVAL BASE CIVILIAN EMPLOYEES CO-OPERATIVE SOCIETY LTD.NO.4146, NAVAL BASE, COCHIN - 682 004 REPRESENTED BY ITS SECRETARY. BY ADVS. M.SASINDRAN SREEHARI INDUKALADHARAN RESPONDENTS : 1 THE INCOME TAX OFFICER WARD -2, CENTRAL REVENUE BUILDING, I.S.PRESS ROAD, KACHERIPPADY, ERNAKULAM - 682 018. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), KOCHI - 682 002. BY SRI.JOSE JOSEPH, SC BY ADV.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.12.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 16867 OF 2021 2 BECHU KURIAN THOMAS, J. =-=-=-=-=-=-=-=-=-=-=-=-=-= W.P.(C) No.16867 of 2021 =-=-=-=-=-=-=-=-=-=-=-=-=-= Dated this the 2nd day of December, 2021 JUDGMENT Even though by order dated 26.08.2021, this Court had restrained the respondents from proceeding with the recovery of the amount involved in the order of assessment, till disposal of the stay petition filed by the petitioner before the statutory authority, it is informed across the Bar that till date, the stay petition has not been considered. 2. Having regard to the fact that in matters where issue of Section 80P of the Income Tax Act is applicable, this Court has been consistently directing the Appellate Authority to consider and pass appropriate orders on the appeal itself, rather than directing consideration of the stay petition. The circumstances reveal that, similar orders can be passed in this case also. 3. Petitioner is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. Ext.P3 order of assessment was issued against the petitioner on 06.04.2021. 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. WP(C) NO. 16867 OF 2021 3 4. While assailing the assessment order before the first respondent, petitioner has sought to canvass that the judgment of the Supreme Court in Mavilayi Service Cooperative 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. 5 Since the petitioner has already preferred an appeal as Ext.P5 and the same is pending consideration before the 2nd 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. 6. Accordingly, there will be a direction to the 2nd respondent to consider and pass appropriate orders on Ext.P5, as expeditiously as possible. 7. Till the disposal of the appeal, no coercive steps shall be initiated against the petitioner pursuant to Ext.P3 assessment order. The writ petition is disposed of as above. Sd/- BECHU KURIAN THOMAS, JUDGE RKM WP(C) NO. 16867 OF 2021 4 APPENDIX OF WP(C) 16867/2021 PETITIONER'S EXHIBITS : Exhibit P1 TRUE TYPED COPY OF THE CERTIFICATE NO.4146 DATED 29/07/1957 ISSUED BY THE REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM. Exhibit P2 TRUE COPY OF THE ORDER NO.LC.R.B./1376/18/K.DIS. DATED 31/03/2018 ISSUED BY THE JOINT REGISTRAR (GENERAL), ERNAKULAM. Exhibit P3 TRUE COPY OF THE ASSESSMENT ORDER DATED 06/04/2021 FOR THE ASSESSMENT YEARS 2018- 2019 ISSUED BY GOVERNMENT OF INDIA. Exhibit P4 TRUE COPY OF THE DEMAND NOTICE DATED 06/04/2021 ISSUED BY GOVERNMENT OF INDIA. Exhibit P5 TRUE COPY OF THE APPEAL MEMORANDUM BEFORE THE 2ND RESPONDENT. Exhibit P6 TRUE COPY OF THE STAY PETITION BEFORE THE 2ND RESPONDENT. Exhibit P7 TRUE COPY OF THE JUDGMENT DATED 28/06/2021 IN W.A.NO.753/2021. "