KALLIAD SERVICE CO-OPERATIVE BANK LTD V. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL FACELESS

WP(C)/37624/2022

AI Insights

The case involves Kalliad Service Co-operative Bank Ltd, which contested an assessment order by the Income Tax Department regarding deductions claimed under Section 80P of the Income Tax Act, 1961. The initial assessment was based on a now-reversed full bench judgment of the Kerala High Court. The Supreme Court had earlier overturned this judgment, leading to the petitioner's challenge in the High Court of Kerala. The petitioner argued that the assessment should be redone in light of the Supreme Court's decision. The court agreed, quashing the original assessment order and directing a re-assessment.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 681227 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 24-11-2022
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Co-operative Bank Ltd v. CIT [431 ITR 1 (SC)]
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: S RAJ; C T ARJUN; S RAJ
• Keywords: Assessment Order; Deduction under section 80P; Income Tax; Supreme Court judgment
• Section: 144; 142(1); 80P; 144B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. THURSDAY, THE 24TH DAY OF NOVEMBER 2022 / 3RD AGRAHAYANA, 1944 WP(C) NO. 37624 OF 2022 PETITIONER: KALLIAD SERVICE CO-OPERATIVE BANK LTD, KALLIAD P.O., KANNUR – 670 593, REPRESENTED BY ITS SECRETARY SAJITHA KUMARI M. BY ADVS. S.ARUN RAJ C.T.SUJA ARJUN S.RAJ RESPONDENTS: 1 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI – 110 003. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, KOZHIKODE – 673 001. BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.11.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 37624 OF 2022 2 JUDGMENT The petitioner has approached this Court being aggrieved by the fact that the claim of the petitioner for deduction under Section 80P of the Income Tax Act, 1961 has been decided on the basis of a full bench judgment of this Court, which has been reversed by the Supreme Court by the judgment reported as Mavilayi Service Co-operative Bank Ltd v. CIT [431 ITR 1 (SC)]. 2. Heard the learned counsel appearing for the respondent Department also. 3. Having heard the learned counsel appearing for the petitioner and the learned counsel appearing for the respondent Department and having perused Ext.P4 order of assessment, I am of the view that there is considerable merit in the contention taken by the learned counsel for the petitioner that since the claim of the petitioner for deduction under Section 80P of the Income Tax Act, 1961 has been decided on the basis of a full bench judgment of this Court, which has been reversed by the Supreme Court through the judgment referred to above, the assessment order is to be set aside and a direction is to be issued to the 1st respondent to pass fresh WP(C) NO. 37624 OF 2022 3 orders of assessment after taking note of the judgment of the Supreme Court referred to above and also after affording to the petitioner a further opportunity of hearing. The fresh assessment order shall be passed without undue delay. To enable the re-consideration of the matter, as above, Ext.P4 order of assessment is quashed. The writ petition will stand disposed of as above. Sd/- GOPINATH P. JUDGE DK WP(C) NO. 37624 OF 2022 4 APPENDIX OF WP(C) 37624/2022 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE NOTICE DATED 21-02- 2022 UNDER SECTION 142(1) OF THE ACT ISSUED BY THE 1ST RESPONDENT FOR THE AY 2020-21 TO THE PETITIONER Exhibit P2 A TRUE COPY OF REPLY DATED 27-03-2022 E-FILED BY THE PETITIONER IN RESPONSE TO THE NOTICE U/S 142(1) DATED 21-02- 2022 ALONG WITH THE ACKNOWLEDGEMENT Exhibit P3 A TRUE COPY OF THE SHOW CAUSE NOTICE DATED 15-09-2022 ISSUED BY THE 1ST RESPONDENT FOR THE AY 2020-21 Exhibit P4 A TRUE COPY OF THE ASSESSMENT ORDER DATED 22-09-2022 UNDER SECTION 144 R.W.S. 144B OF THE ACT AND THE DEMAND NOTICE ISSUED BY THE 1ST RESPONDENT FOR THE AY 2020-21 "