KARAMUCK SERVICE CO-OPERATIVE BANK LTD. NO.16 V. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/33846/2022

AI Insights

Karamuck Service Co-operative Bank Ltd., a Primary Agricultural Credit Society, challenged an assessment order that denied them a deduction under Section 80P of the Income Tax Act, citing non-compliance with the requirements under the Co-operative Societies Act. The bank argued that the assessing officer did not consider a relevant Supreme Court judgment in their appeal. The High Court, acknowledging the pending appeal and the relevance of the Supreme Court judgment, directed the appellate authority to expedite the review of the bank's appeal and stay any coercive actions based on the assessment order until the appeal's resolution.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 770861 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 26-10-2022
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others [2021 (1) KLT 485]
• Laws Referred To: Co-operative Societies Act, 1969, Section 80P
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: P C SASIDHARAN
• Keywords: Appeal; Assessment Order; Deduction; Income Tax; Primary Agricultural Credit Society; Time Bound Consideration
• Section: 80P

Judgement Text

"WP(C) NO. 33846 OF 2022 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. WEDNESDAY, THE 26TH DAY OF OCTOBER 2022 / 4TH KARTHIA, 1944 WP(C) NO. 33846 OF 2022 PETITIONER/S: KARAMUCK SERVICE CO-OPERATIVE BANK LTD. NO.16 KARAMUCK, KANDASSANKADAVU, THRISSUR-680 613, REPRESENTED BY ITS SECRETARY., PIN - 680613 BY ADV P.C.SASIDHARAN RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, ROOM NO.356 C.R. BUILDING, IP ESTATE, DELHI- 110 002., PIN - 110002 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX O/O THE PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, MANANCHIRA, KOZHIKODE, KERALA - 673001. , PIN - 673001 3 THE INCOME TAX OFFICER WARD 2(1), THRISSUR, OFFICE OF THE INCOME TAX OFFICER, AAYAKAR BHAVAN, SAKTHANTHAMPURAN NAGAR, THRISSUR - 680001. BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 33846 OF 2022 2 JUDGMENT Petitioner is a Primary Agricultural Credit Society registered under the Co-operative Societies Act, 1969. Ext.P1 order of assessment was issued against the petitioner on 24.9.2022. 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 Co-operative Societies Act. 2. While assailing the assessment order before the 1st respondent, petitioner has sought to canvass that the judgment of the Supreme Court in Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others [2021 (1) KLT 485] was not considered by the assessing officer, though the assessment order was rendered subsequent to the Supreme Court Judgment. 3. Since the petitioner has already preferred an appeal as Ext.P4 and the same is pending consideration before the 1st 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. 4. Accordingly, there will be a direction to the 1st respondent to consider and pass appropriate orders on Ext.P4, as expeditiously as possible. 5. Till the disposal of the appeal, no coercive steps shall be initiated WP(C) NO. 33846 OF 2022 3 pursuant to Ext.P1 assessment order. The writ petition is disposed of as above. Sd/- GOPINATH P. JUDGE okb/ //True copy// P.S. to Judge WP(C) NO. 33846 OF 2022 4 APPENDIX OF WP(C) 33846/2022 PETITIONER EXHIBITS Exhibit P1 EXHIBIT-P1: TRUE COPY OF THE ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 2020-2021 ISSUED BY THE 1ST RESPONDENT DATED 24/09/2022 Exhibit P2 EXHIBIT-P2: TRUE COPY OF THE DEMAND NOTICE DATED 24/09/2022 ISSUED BY THE 1ST RESPONDENT. Exhibit P3 EXHIBIT-P3: TRUE COPY OF THE STAY PETITION DATED 12/10/2022 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. Exhibit P4 EXHIBIT-P4: TRUE COPY OF THE APPEAL DATED 13/10/2022 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. Exhibit P5 EXHIBIT-P5: TRUE COPY OF THE ACKNOWLEDGEMENT OF RECEIPT OF FORM SHOWING THE DATE OF FILING AS 13/10/2022 Exhibit P6 EXHIBIT-P6 - TRUE COPY OF THE JUDGMENT IN W.A.NO.1536 OF 2019 DATED 1/7/2019 Exhibit P7 EXHIBIT-P7 - TRUE COPY OF THE JUDGMENT IN W.P(C) NO.14282/2021 DATED 19/7/2021 Exhibit P8 EXHIBIT P8:- THE TRUE COPY OF THE JUDGMENT IN W.P(C) NO. 22073/2021 DATED 13-10-2021 OF THIS COURT "