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

WP(C)/13281/2021

AI Insights

The case involves Mangode Service Co-operative Bank 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 8, 2021, was challenged based on the grounds that the bank met the criteria of a Primary Agricultural Credit Society as per the Co-operative Societies Act, 1969. The petitioner argued that the assessing officer did not consider a relevant Supreme Court judgment (Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others) which was delivered shortly before the assessment order. The High Court, acknowledging the pending appeal before the Commissioner of Income Tax (Appeals), directed a timely resolution of the appeal without the usual requirement of a 20% deposit of the disputed amount.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 751782 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 13-09-2021
• 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: P K R MENON; JOSE JOSEPH
• Assessee Lawyers: T M SREEDHARAN; V P NARAYANAN; ALAN DEV
• Keywords: Appeal; Assessment Order; Deduction; Income Tax; Primary Agricultural Credit Society; Time Bound Consideration
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS MONDAY, THE 13TH DAY OF SEPTEMBER 2021 / 22ND BHADRA, 1943 WP(C) NO. 13281 OF 2021 PETITIONER : MANGODE SERVICE CO-OPERATIVE BANK LTD., MANGODE POST, CHERPLACHERY, PALAKKAD-679 503, REPRESENTED BY ITS SECRETARY, SMT.SARASWATHI.K. BY ADVS. T.M.SREEDHARAN (SR.) V.P.NARAYANAN ALAN PRIYADARSHI DEV RESPONDENTS : 1 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, NEW DELHI-110 001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, NEW DELHI-110 001. BY ADVS. SRI.P.K.R.MENON,SENIOR COUNSEL, GOI(TAXES) JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13.09.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 13281 OF 2021 2 BECHU KURIAN THOMAS, J. =-=-=-=-=-=-=-=-=-=-=-=-=-= W.P.(C).No.13281 of 2021 =-=-=-=-=-=-=-=-=-=-=-=-=-= Dated this the 13th day of September, 2021 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 08.04.2021. 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 Co-operative Societies Act. 2. While assailing the assessment order before the 2nd respondent Appellate Authority, 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.P2 and the same is pending consideration before the 2nd respondent, I deem it fit that this writ petition be disposed of WP(C) NO. 13281 OF 2021 3 directing the Appellate Authority to consider the appeal in a time bound manner. Accordingly there will a direction to the 2nd respondent to consider and pass appropriate orders on Ext.P2, as expeditiously as possible, at any rate, within a period of six months from the date of receipt of a copy of this judgment. It is clarified that the Appellate Authority shall not insist on deposit of 20% of the amount in dispute considering the nature of the case that has been pleaded by the petitioner. Till such time, no coercive steps shall be initiated pursuant to Ext.P1 assessment order. The writ petition is disposed of as above. Sd/- BECHU KURIAN THOMAS, JUDGE RKM WP(C) NO. 13281 OF 2021 4 APPENDIX OF WP(C) 13281/2021 PETITIONER'S EXHIBITS : Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER AND DEMAND NOTICE DATED 08.04.2021 ALONG WITH COMPUTATION OF INCOME FOR AY 2018-19 BY THE 1ST RESPONDENT. Exhibit P2 TRUE COPY OF THE MEMORANDUM OF APPEAL E- FILED DATED 23.04.2021 FOR THE ASSESSMENT YEAR 2018-19 FILED BEFORE THE 2ND RESPONDENT. Exhibit P3 TRUE COPY OF THE STAY PETITION DATED 22.06.2021 FILED BY THE PETITIONER FOR AY 2018-19 BEFORE THE 2ND RESPONDENT. "