Kadakkavoor Service Co-operative Bank Ltd No 1063 V. Assessment Unit Income Tax Department National Faceless Assessment Centre, Delhi and The Income Tax Officer Ward-2 (1) and The Commissioner of Income Tax (Appeals) and The Commissioner of Income Tax (Appeals) National Faceless Appeal Centre, North Block, Delhi

WP(C)/41846/2023

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The case involves Kadakkavoor Service Co-operative Bank Ltd, which filed a writ petition against the revenue recovery proceedings initiated based on an assessment order (Ext P1) dated 22.09.2022. The bank, a primary agricultural credit society, was denied a deduction under Section 80P of the Income Tax Act, 1961, as it allegedly did not meet the criteria set for such societies. The bank appealed against this order and filed a stay petition (Ext P5) with the fourth respondent. The High Court of Kerala at Ernakulam, presided by Justice C.S. Dias, heard the arguments and decided to defer the proceedings until the stay petition is resolved, directing the fourth respondent to expedite the decision-making process.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 799746 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 13-12-2023
• Assessment Year: misc
• Other Referred Cases: Mavilayi Societies Co operative Bank v. Commissioner of Income Tax [2021 (1) KLT 485]
• Laws Referred To: Kerala Co-operative Societies Act, 1969, Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: P G JAYASANKAR
• Assessee Lawyers: ARJUN RAGHAVAN; T R HARIKUMAR; POOJA PANKAJ
• Keywords: Assessment Order; Deduction under section 80P; Primary Agricultural Credit Society; Revenue Recovery Proceedings; Stay Petition
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE C.S.DIAS WEDNESDAY, THE 13TH DAY OF DECEMBER 2023 / 22ND AGRAHAYANA, 1945 WP(C) NO. 41846 OF 2023 PETITIONER: KADAKKAVOOR SERVICE CO-OPERATIVE BANK LTD NO 1063 REPRESENTED BY SECRETARY KADAKKAVOOR, THIRUVANANTHAPURAM, PIN – 695306 BY ADVS. ARJUN RAGHAVAN T.R.HARIKUMAR POOJA PANKAJ RESPONDENTS: 1 ASSESSMENT UNIT INCOME TAX DEPARTMENT NATIONAL FACELESS ASSESSMENT CENTRE, DELHI, ROOM NO 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI, PIN – 110003 2 THE INCOME TAX OFFICER WARD-2 (1), OFFICE OF THE INCOME TAX OFFICER, AAYAKAR BHAVAN, KOWDIAR P.O, THIRUVANANTHAPURAM DISTRICT, PIN – 695003 3 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, PIN – 695003 4 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, NORTH BLOCK, DELHI, PIN – 110001 OTHER PRESENT: GSC - SRI P G JAYASANKAR THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W .P .(C)No.41846/2023 -:2:- Dated this the 13th day of December, 2023 J U D G M E N T The writ petition is filed, inter-alia, to direct the second respondent not to proceed with the revenue recovery proceedings based on Ext P1 assessment order till the disposal of Ext P3 appeal and P5 stay petition. 2. The petitioner’s case is that, it is a primary agricultural credit society registered under the Kerala Co-operative Societies Act, 1969(in short, ‘Act’ ). Ext P1 assessment order was passed against the petitioner on 22.09.2022. The petitioner’s claim for deduction under Section 80P of the Income Tax Act, 1961, was rejected on the ground that there was no evidence to establish that the petitioner had satisfied the ingredients of the Primary Agricultural Credit Society W .P .(C)No.41846/2023 -:3:- as contemplated under the Act. Even though the petitioner had canvassed the position laid down by the Hon'ble Supreme Court in Mavilayi Societies Co operative Bank v. Commissioner of Income Tax [2021 (1) KLT 485], the same was rejected by the second respondent. Aggrieved by Ext P1 order, the petitioner has preferred Ext P3 appeal before the fourth respondent along with Ext P5 stay petition. The petitioner prays that the second respondent may be directed to consider and dispose of Exts P3 & P5 within a time period and until such time to defer further proceedings pursuant to Ext P1 order. 2. Heard; Sri. Arjun Raghavan, the learned counsel appearing for the petitioner and Sri. P G Jayasankar, the learned Government Pleader appearing for the respondents. 3. Having considered the pleadings and materials on record and taking note of the fact that W .P .(C)No.41846/2023 -:4:- the petitioner has already preferred Ext P3 appeal along with Ext P5 stay petition before the fourth respondent, I deem it appropriate to dispose of the writ petition in the following manner: (i) The fourth respondent is directed to consider and dispose of Ext P5 stay petition, in accordance with law and as expeditiously as possible, at any rate, within a period of three months from the date of receipt of a certified copy of this judgment, after affording the petitioner an opportunity of being heard. (ii) Needless to mention, if the fourth respondent proposes to pass any conditional order of stay, he shall state reasons for the same. (iii) If at all the fourth respondent deems it appropriate to dispose of the appeal itself, it would be up to him to decide the same, as per the conditions stipulated in direction No.(i). (iv) Until such time orders are passed on Ext P5 stay petition, all further proceedings pursuant W .P .(C)No.41846/2023 -:5:- to Ext P1 assessment order shall stand deferred. Sd/- C.S.DIAS,JUDGE DST/13.12.23 //True copy// P .A. To Judge W .P .(C)No.41846/2023 -:6:- APPENDIX EXHIBIT-P1 A TRUE COPY OF ASSESSMENT ORDER DATED 22- 09-2022, FOR THE ASSESSMENT YEAR 2020-2021 ISSUED BY THE 1ST RESPONDENT EXHIBIT-P2 A TRUE COPY OF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 22- 09-2022 EXHIBIT-P3 A TRUE COPY OF THE ONLINE APPEAL DATED 29- 09-2022, FILED BEFORE THE 4TH RESPONDENT, AGAINST EXT-P1 ASSESSMENT ORDER EXHIBIT-P4 A TRUE COPY OF THE COMMUNICATION DATED 03- 11-2023 ISSUED BY THE 2ND RESPONDENT EXHIBIT-P5 A TRUE COPY OF THE STAY PETITION DATED 11- 11-2023 FILED BY THE PETITIONER BEFORE THE 4TH RESPONDENT EXHIBIT-P6 A TRUE COPY OF THE ACKNOWLEDGMENT OF STAY PETITION EXHIBIT-P7 A TRUE COPY OF THE JUDGMENT DATED 19-07- 2019 IN W.A NO.1639 OF 2019 OF THIS HON'BLE COURT EXHIBIT-P8 A TRUE COPY OF THE JUDGMENT DATED 14-01- 2022 IN WP(C) NO.30579 OF 2021 OF THIS HON'BLE COURT EXHIBIT-P9 A TRUE COPY OF JUDGMENT DATED 23-02-2022 IN WP(C) 6109 OF 2022 EXHIBIT-P10 A TRUE COPY OF JUDGMENT DATED 05-09-2023 IN WP(C) 29098 OF 2023 RESPONDENTS EXHIBITS : NIL "