Peroorkada Service Co-operative Bank Ltd V. The Income Tax Officer Ward-2(1), Kowdiar, Trivandrum and Commissioner of Income Tax (Appeals)-1, Trivandrum and Commissioner of Income Tax (Appeals), National Faceless Assessment Centre, New Delhi

WP(C)/30899/2023

AI Insights

The case involves Peroorkada Service Co-operative Bank Ltd., a primary Credit Co-operative Society, which provides banking services and agricultural credit to its members. The bank claimed exemption from income tax under Section 80P of the Income Tax Act, 1961, but was assessed a substantial income tax for the year 2012-2013, with a demand notice issued for Rs.54,49,31,750. The bank appealed against this assessment, and the appeal was transferred to the National Faceless Assessment Centre but had not been resolved. The court's intervention was sought to expedite the appeal process to prevent immediate recovery actions based on the disputed tax assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 808409 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 21-09-2023
• Assessment Year: misc
• Other Referred Cases: Principal Commissioner v. Peroorkaa Service Co-operative Bank Ltd., [2022 442 ITR 141 (Ker.)]
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: C A JOJO
• Keywords: Agricultural Credit; Co-operative Bank; Income tax exemption; Interest from deposits; Recovery proceedings
• Section: 80P; 156

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH THURSDAY, THE 21ST DAY OF SEPTEMBER 2023 / 30TH BHADRA, 1945 WP(C) NO. 30899 OF 2023 PETITIONER: PEROORKADA SERVICE CO-OPERATIVE BANK LTD NO.T.1412, PEROORKADA P.O, THIRUVANANTHAPURAM DISTRICT, KERALA, REPRESENTED BY ITS SECRETARY, PIN – 695 005. BY ADV C.A.JOJO RESPONDENTS: 1 THE INCOME TAX OFFICER WARD-2(1), KOWDIAR, TRIVANDRUM, PIN – 695 003. 2 COMMISSIONER OF INCOME TAX (APPEALS)-1 OFFICE OF THE COMMISSIONER OF INCOME TAX (APPEALS), TRIVANDRUM, PIN – 695 003. 3 THE COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI-110 001. SRI. CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.09.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No. 30899/2023 : 2 : DINESH KUMAR SINGH, J. --------------------------------------------------------- W.P.(C). No. 30899 of 2023 --------------------------------------------------------- Dated this the 21th day of September, 2023. JUDGMENT The petitioner is a primary Credit Co-operative Society engaged in the business of providing banking services and agricultural credit to its members. The petitioner claims that its income is exempted from the payment of income tax under the provisions of Section 80P of the Income Tax Act, 1961. The assessing authority has completed assessment for the assessment year 2012-2013 and had computed the total income at Rs.71,98,44,040/- as against the declared income of ‘nil’. A demand notice under Section 156 of the Act, 1961 for an amount of Rs.54,49,31,750/- was issued in pursuance to Exhibit P1 assessment order dated 23.02.2023. 2. The petitioner has filed an appeal along with an application to stay the recovery proceedings, before the second respondent and the same was transferred to the third respondent. The appeal has not yet been disposed of. 3. The learned counsel for the petitioner submits that the petitioner’s case is squarely covered by the decision of this Court in W.P.(C) No. 30899/2023 : 3 : Principal Commissioner v. Peroorkaa Service Co-operative Bank Ltd., [2022 442 ITR 141 (Ker.)]. It is also submitted that the income of the petitioner is nothing but the interest from the deposits made by its members. This Court does not want to go into the merits of the matter. Since the petitioner is facing recovery proceedings pursuant to Exhibit P6 demand notice, it would be appropriate to direct the third respondent to decide the appeal expeditiously. In that view of the matter, the present writ petition is finally disposed of, with a direction to the third respondent to consider Exhibit P4 appeal filed by the petitioner and pass appropriate orders within a period of two months. It is made clear that if the third respondent is not in a position to decide the appeal within the aforesaid time limit, Exhibit P5 stay petition be considered within the aforesaid limit. sd/- DINESH KUMAR SINGH, JUDGE. Rv W.P.(C) No. 30899/2023 : 4 : APPENDIX OF WP(C) 30899/2023 PETITIONER’S EXHIBITS: Exhibit P1 A TRUE COPY OF THE ORDER U/S 250 ISSUED BY THE 3RD RESPONDENT DATED 23.02.2023 Exhibit P2 A TRUE COPY OF THE ORDER GIVING EFFECT ISSUED BY THE 1ST RESPONDENT DATED 17.04.2023 Exhibit P3 A TRUE COPY OF THE DEMAND NOTICE ISSUED BY THE 1ST RESPONDENT DATED 19.06.2023 Exhibit P4 A TRUE COPY OF THE APPEAL FILED BEFORE THE 3RD RESPONDENT DATED 18.09.2023 Exhibit P5 A TRUE COPY OF THE STAY PETITION FILED BEFORE THE 3RD RESPONDENT DATED 19.09.2023 Exhibit P6 A TRUE COPY OF THE DEMAND NOTICE ISSUED BY THE 1ST RESPONDENT DATED 12.09.2023 Exhibit P7 A TRUE COPY OF THE LETTER SUBMITTED TO THE 1ST RESPONDENT DATED 15.09.2023 RESPONDENTS’ EXHIBITS: NIL True Copy PS To Judge. rv "