Muppathadam Service Co-operative Bank Ltd V. Assessment Unit, National E-Assessment Center, Income Tax Department, Ministry of Finance and Commissioner of Income Tax (Appeals), Faceless Appellate Center (NFAC) and Principal Chief Commissioner of Income Tax (Kerala)

WP(C)/27396/2024

AI Insights

Muppathadam 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 Kerala Co-operative Societies Act. The bank appealed the assessment order, which is currently pending before the Commissioner of Income Tax (Appeals). The petitioner argued that a recent Supreme Court judgment relevant to their case supports their claim. The High Court of Kerala, considering the ongoing appeal and the Supreme Court's judgment, directed the appellate authority to expedite the review of the case and prohibited any coercive actions based on the assessment order until the appeal is resolved.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 798203 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 01-08-2024
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax [2021 (1) KLT 485]
• Laws Referred To: Kerala Co-operative Societies Act, 1969, Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH; CYRIAC TOM
• Assessee Lawyers: V P NARAYANAN; M M MONAYE; M VARGHESE
• Keywords: Appeal; Assessment Order; Income tax deduction; Primary Agricultural Credit Society; Stay Petition
• Section: 143(3); 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. THURSDAY, THE 1ST DAY OF AUGUST 2024 / 10TH SRAVANA, 1946 WP(C) NO. 27396 OF 2024 PETITIONER: MUPPATHADAM SERVICE CO-OPERATIVE BANK LTD E-216, MUPPATHADAM P.O, ALUVA, COCHIN, KERALA, PIN – 683 110, REPRESENTED BY ITS SECRETARY SABU PANDANCHERY HARIDAS. BY ADVS. V.P.NARAYANAN M.M.MONAYE M.PAUL VARGHESE RESPONDENTS: 1 ASSESSMENT UNIT, NATIONAL E-ASSESSMENT CENTER, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL STADIUM, NEW DELHI, PIN – 110 003, REPRESENTED BY ITS INCOME TAX OFFICER. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), FACELESS APPELLATE CENTER (NFAC), NEW DELHI, PIN – 110 001. 3 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX (KERALA), CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, KOCHI, PIN – 682 018. BY ADVS. SRI. JOSE JOSEPH (SR.SC-IT DEPT) SRI. CYRIAC TOM (Jr.SC - IT DEPT) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.08.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.27396/2024 -:2:- 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 12.04.2021. 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 2nd respondent, petitioner has sought to canvas that the judgment of the Supreme Court in Mavilayi Service Co- operative Bank Ltd. v. Commissioner of Income Tax [2021 (1) KLT 485] now governs the field thereby rendering the assessment itself as incorrect. 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 W.P.(C) No.27396/2024 -:3:- of directing the Appellate Authority to consider the appeal in a time bound manner. 4. Accordingly, there will be a direction to the 2nd 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/- GOPINATH P . JUDGE ats W.P.(C) No.27396/2024 -:4:- APPENDIX OF WP(C) 27396/2024 PETITIONER’S EXHIBITS Exhibit P1 THE TRUE COPY OF THE ASSESSMENT ORDER DATED 12.04.2021 ALONG WITH THE DEMAND NOTICE ISSUED IN CASE OF THE PETITIONER FOR AY 2018-19 PASSED BY THE 1ST RESPONDENT UNDER SECTION 143(3) OF THE ACT. Exhibit P2 TRUE COPY OF THE MEMORANDUM OF APPEAL FOR THE AY 2018-19, FILED BEFORE THE 2NDRESPONDENT DATED 03.05.2021. Exhibit P3 THE TRUE COPY OF THE STAY PETITION DATED 25.07.2024 FILED BEFORE THE 2NDRESPONDENT FOR AY 2018-19. Exhibit P4 THE TRUE COPY OF THE JUDGMENT IN THE CASE OF MUPPATHADAM SERVICE CO-OPERATIVE BANK VS ASSESSMENT UNITIN W.P. (C) NO. 25885 OF 2024 DATED 19.07.2024 "