Kerala State Co-op. Agricultural and Rural Development Bank Ltd. V. Union of India and Additional/Joint/Deputy/Assistant Commissioner of Income Tax/Income-Tax Officer, National E-Assessment Centre, Delhi and Assistant Commissioner of Income Tax Circle-1(1), Range-1, Aayakar Bhavan, Kowdiar P.O. Trivandrum and Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi and Commissioner of Income Tax (Appeals) Aayakar Bhavan, Kowdiar, Thiruvananthapuram and Commissioner of Income Tax (Appeals) National Faceless Appeal Centre (NFAC), Kochi

WP(C)/9186/2022

AI Insights

The case involves the Kerala State Co-op. Agricultural and Rural Development Bank Ltd., which contested an assessment order rejecting its claim for deduction under Section 80P of the Income Tax Act. The assessment order was issued on 20.04.2021, and the petitioner argued that the assessing officer failed to consider a relevant Supreme Court judgment in Mavilayi Service Cooperative Bank Ltd. v. Commissioner of Income Tax, which was delivered prior to the assessment order. The petitioner had already filed an appeal against the assessment order, which was pending before the Commissioner of Income Tax (Appeals). The High Court's intervention was sought to expedite the appeal process and prevent any immediate coercive actions based on the assessment order.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 821395 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 25-03-2022
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Cooperative Bank Ltd. v. Commissioner of Income Tax [2021 (1) KLT 485]
• Laws Referred To: Kerala Co-operative Societies Act, 1969, Section 80P
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: S MANU; JOSE JOSEPH
• Assessee Lawyers: JAZIL JOSE JACOB
• Keywords: Appeal; Assessment Order; Deduction; Income Tax; Primary Agricultural Credit Society
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS FRIDAY, THE 25TH DAY OF MARCH 2022 / 4TH CHAITHRA, 1944 WP(C) NO. 9186 OF 2022 PETITIONER : KERALA STATE CO-OP. AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD., POST BOX NO. 56, STATUE JN., TRIVANDRUM, REPRESENTED BY ITS MANAGING DIRECTOR MR. BINOY KUMAR. M, PIN - 695001 BY ADVS. JAZIL DEV FERDINANTO JOSE JACOB RESPONDENTS : 1 UNION OF INDIA, REPRESENTED BY SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NORTH BLOCK, NEW DELHI ERNAKULAM, PIN - 110001 2 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME-TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, DELHI, PIN – 110 001 3 ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-1(1), RANGE-1, AAYAKAR BAHAVAN, KOWDIAR P.O. TRIVANDRUM, PIN - 695003 4 COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE (NFAC), DELHI, PIN - 110001 WP(C) NO. 9186 OF 2022 2 5 COMMISSIONER OF INCOME TAX(APPEALS) AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, PIN – 695 003 6 COMMISSIONER OF INCOME TAX(APPEALS) NATIONAL FACELESS APPEAL CENTRE (NFAC), 1ST FLOOR, POORNIMA BUILDING, PANAMPILLY NAGAR, KOCHI, PIN - 682036 BY S.MANU ASGI, BY SRI.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.03.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 9186 OF 2022 -:3:- BECHU KURIAN THOMAS, J. ----------------------------------------- W.P.(C) No.9186 of 2022 ---------------------------------------- Dated this the 25th day of March, 2022 JUDGMENT Petitioner is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. Ext.P1 order of assessment was issued against the petitioner on 20.04.2021. 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. 2. While assailing the assessment order before the 4th 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. WP(C) NO. 9186 OF 2022 -:4:- 3. Since the petitioner has already preferred an appeal as Ext.P3 and the same is pending consideration before the 4th 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 4th respondent to consider and pass appropriate orders on Ext.P3, as expeditiously as possible. 5. Till the disposal of the appeal, no coercive steps shall be initiated against the petitioner pursuant to Ext.P1 assessment order. The writ petition is disposed of as above. Sd/- BECHU KURIAN THOMAS, JUDGE RKM WP(C) NO. 9186 OF 2022 -:5:- APPENDIX OF WP(C) 9186/2022 PETITIONER'S EXHIBITS : ExhibitP1 COPY OF THE ASSESSMENT ORDER RELATING TO AY 2018-19 DATED 20.04.2021 ExhibitP2 COPY OF DEMAND NOTICE RELATING TO AY 2018-19 DATED 20.04.2021 ExhibitP3 COPY OF APPEAL IN FORM 35 DATED 20.05.2021 ExhibitP4 COPY OF TAX DUE LETTER DATED 09.11.2021 ExhibitP5 REPLY FILED IN RESPONSE TO TAX DUE LETTER DATED 15.11.2021 ExhibitP6 COPY OF DEMAND NOTICE DATED 04.03.2022 ExhibitP7 COPY OF PETITION FOR STAY OF COLLECTION OF TAX FILED WITH CIT(A), TRIVANDRUM DATED 04.03.2022 ExhibitP8 COPY OF PETITION FOR STAY OF COLLECTION OF TAX FILED WITH CIT(A), NFAC, KOCHI DATED 07.03.2022 ExhibitP9 REPLY FILED IN RESPONSE TO DEMAND NOTICE DATED 09.03.2022 "