NADATHARA FARMER'S SERVICE CO-OP. BANK LTD.NO.3499 V. THE INCOME TAX OFFICER,

WP(C)/26083/2021

AI Insights

The case involves the Nadathara Farmer's Service Co-op. Bank Ltd., which is a Primary Agricultural Credit Society, challenging an assessment order issued by the Income Tax Officer. The assessment order rejected the petitioner's claim for deduction under Section 80P of the Income Tax Act, citing insufficient evidence to prove that the petitioner satisfied the criteria of a Primary Agricultural Credit Society as required under the Kerala Co-operative Societies Act. The petitioner argued that the assessing officer did not consider a relevant Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, which was delivered shortly before the assessment order. The High Court, acknowledging the pending appeal before the 2nd respondent, directed the additional 3rd respondent to expedite the appeal process and stay any coercive actions based on the assessment order until the appeal is resolved.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 751643 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 24-11-2021
• 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, Section 80P
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: M SASINDRAN; SREEHARI INDUKALADHARAN
• 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 WEDNESDAY,THE 24TH DAY OF NOVEMBER 2021/3RD AGRAHAYANA, 1943 WP(C) NO. 2 6083 OF 2021 PETITIONER: NADATHARA FARMER'S SERVICE CO-OP. BANK LTD.NO.3499, POOCHATY P.O.-680 751, NADATHARA, THRISSUR, REPRESENTED BY ITS MANAGING DIRECTOR-IN-CHARGE. BY ADVS. SRI.M.SASINDRAN SRI.SREEHARI INDUKALADHARAN RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD 2(3), AYAKAR BHAVAN, INCOME TAX OFFICE, SHAKTHANTHAMPURAN NAGAR, THRISSUR-680 001. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX AAYAKAR BHAVAN, MANANCHIRA, KOZHIKODE-673 001. *3 THE COMMISSIONER OF INCOME TAX (APPEALS) 3RD FLOOR, AAYAKAR BHAVAN THRISSUR *(ADDL.R3 IS IMPLEADED AS PER ORDER DATED 24.11.2021 IN I.A. NO.1 OF 2021) W.P.(C) No.26083/21 -:2:- BY SRI.JOSE JOSEPH,SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.11.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.26083/21 -:3:- BECHU KURIAN THOMAS, J. ----------------------------------------- W.P.(C) No.26083 of 2021 ---------------------------------------- Dated this the 24th day of November, 2021 JUDGMENT Petitioner is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. Ext.P2 order of assessment was issued against the petitioner on 27.09.2021. 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 canvass that the judgment of the Supreme Court in Mavilayi Service Co- operative 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. W.P.(C) No.26083/21 -:4:- 3. Since the petitioner has already preferred an appeal as Ext.P4 and the same is pending consideration before the 2nd 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. Though the appeal is filed before the 2nd respondent, it is pointed out by the learned counsel for the petitioner that, now the appeal is required to be considered by the additional 3rd respondent. 5. Accordingly, there will be a direction to the additional 3rd respondent or the competent Appellate Authority 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 against the petitioner pursuant to Ext.P2 assessment order. The writ petition is disposed of as above. Sd/- BECHU KURIAN THOMAS JUDGE vps W.P.(C) No.26083/21 -:5:- APPENDIX OF WP(C) 26083/2021 PETITIONER EXHIBITS EXHIBIT P1 A TRUE COPY OF THE CERTIFICATE OF CLASSIFICATION DATED 30.12.2016 ISSUED BY THE JOINT REGISTRAR (GENERAL) OF CO- OPERATIVE SOCIETIES, THRISSUR. EXHIBIT P2 A TRUE COPY OF THE ASSESSMENT ORDER DATED 27.9.2021. EXHIBIT P3 A TRUE COPY OF THE DEMAND NOTICE DATED 27.9.2021. EXHIBIT P4 A TRUE COPY OF THE APPEAL MEMORANDUM DATED 25.10.2021 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P5 A TRUE COPY OF THE LETTER ITBA/RCV/F/17/2021-22/1036778507(1) DATED 9.11.2021 ISSUED BY THE IST RESPONDENT. EXHIBIT P6 A TRUE COPY OF THE JUDGMENT DATED 21.12.2017 IN WPC 38566 OF 2017. EXHIBIT P7 A TRUE COPY OF THE RECTIFICATION ORDER NO.ITBA/REC/S/154-1/2021-2022 1035621166(1) DATED 16.9.2021. "