THE AMBALLUR SERVICE CO-OPERATIVE BANK LTD NO. 503 V. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/37488/2022

AI Insights

The case involves The Amballur Service Co-operative Bank Ltd, which is a Primary Agricultural Credit Society, contesting an assessment order that denied them a deduction under Section 80P of the Income Tax Act. The assessment order, issued on 30.09.2022, was challenged based on the Supreme Court's judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, which the petitioner argued rendered the assessment incorrect. The appeal against the assessment order was pending before the Commissioner of Income Tax (Appeals) at the time of this writ petition.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 750483 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 23-11-2022
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Co-operative Bank Ltd. and others v. Commissioner of Income Tax and another [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: CHRISTOPHER ABRAHAM
• Assessee Lawyers: P C SASIDHARAN
• 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 GOPINATH P. WEDNESDAY, THE 23RD DAY OF NOVEMBER 2022 / 2ND AGRAHAYANA, 1944 WP(C) NO. 37488 OF 2022 PETITIONER: THE AMBALLUR SERVICE CO-OPERATIVE BANK LTD NO. 503, MANNAMPETTA, P.O. VARAKKARA, ALAGAPPANAGAR, THRISSUR - 680 302, REPRESENTED BY ITS SECRETARY. BY ADV P.C.SASIDHARAN RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, DELHI – 110 001. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, O/O THE PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, MANACHIRA, KOZHIKODE, KERALA – 673 001. 3 THE INCOME TAX OFFICER WARD 2(1), THRISSUR, OFFICE OF THE INCOME TAX OFFICER, THRISSUR-680 001. BY ADV CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.11.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 37488 OF 2022 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 30.09.2022. 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 1st respondent, petitioner has sought to canvas that the judgment of the Supreme Court in Mavilayi Service Co- operative Bank Ltd. and others v. Commissioner of Income Tax and another [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.P3 and the same is pending consideration before the 1st 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. WP(C) NO. 37488 OF 2022 3 4. Accordingly, there will be a direction to the 1st 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 DK WP(C) NO. 37488 OF 2022 4 APPENDIX OF WP(C) 37488/2022 PETITIONER EXHIBITS Exhibit P1 THE TRUE COPY OF THE ASSESSMENT ORDER DURING THE ASSESSMENT YEAR 2020-2021 DATED 30/09/2022 Exhibit P2 THE TRUE COPY OF THE DEMAND NOTICE DATED 30/09/2022 Exhibit P3 THE TRUE COPY OF THE APPEAL DATED 26/10/2022 PREFERRED BEFORE THE FIRST RESPONDENT Exhibit P4 THE TRUE COPY OF THE ACKNOWLEDGEMENT RECEIPT OF INCOME TAX FORMS SHOWING THE FILING OF THE APPEAL ON 26/10/2022 Exhibit P5 THE TRUE COPY OF THE STAY PETITION DATED 25/10/2022 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT Exhibit P6 THE TRUE COPY OF THE JUDGMENT IN W.A.NO.1536 OF 2019 DATED 1/7/2019 Exhibit P7 THE TRUE COPY OF THE JUDGMENT IN W.P(C) NO.14282/2021 DATED 19/7/2021 Exhibit P8 THE TRUE COPY OF THE JUDGMENT IN W.P(C) NO. 34067/2022 DATED 27/10/2022 "