THE ANCHALUMMOOD SERVICE CO-OPERATIVE BANK LTD. NO.613, V. THE INCOME TAX OFFICER, WARD 1 & TPS

WP(C)/34810/2022

AI Insights

The case involves the Anchalummood Service Co-operative Bank Ltd., which is contesting an assessment order from the Income Tax Department that denied it a deduction under Section 80P of the Income Tax Act for the assessment year 2019-20. The denial was based on the lack of evidence that the bank met the criteria of a Primary Agricultural Credit Society as required under the Kerala Co-operative Societies Act. The petitioner argued that a recent Supreme Court judgment in a similar case should apply, rendering the assessment incorrect. The Income Tax Department countered that the petitioner was not entitled to the deduction as they did not file their tax return on time. The court's decision primarily focused on procedural aspects, allowing the petitioner to seek a condonation of delay in filing the return and putting recovery proceedings on hold pending the Tribunal's decision on the stay application.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 762332 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 02-11-2022
• 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: CHRISTOPHER ABRAHAM; P C SASIDHARAN
• Assessee Lawyers: ARJUN
• Keywords: Assessment Order; Condoning delay; Deduction; Income Tax; Primary Agricultural Credit Society
• Section: 143(1); 80P; 119(2)(b)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. WEDNESDAY, THE 2ND DAY OF NOVEMBER 2022 / 11TH KARTHIKA, 1944 WP(C) NO. 34810 OF 2022 PETITIONER: THE ANCHALUMMOOD SERVICE CO-OPERATIVE BANK LTD. NO.613, REPRESENTED BY ITS SECRETARY, PERINAD P.O, KOLLAM DISTRICT, PIN – 691 601. BY ADVS. ARJUN RAGHAVAN T.R.HARIKUMAR RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD 1 & TPS, OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX, KOLLAM RANGE, AAYAKAR BHAVAN, KARBALA JUNCTION, KOLLAM, PIN – 691 001. 2 THE ASSISTANT DIRECTOR OF INCOME TAX, CENTRALIZED PROCESSING CENTRE, BENGALURU– 560 500. 3 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, PIN – 695 003. 4 THE REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, KENDRIYA BHAVAN, BLOCK NO.C1 & C2, 1ST FLOOR, KAKKANAD, COCHIN-PIN-682 030. 5 THE KERALA STATE CO-OPERATIVE BANK, REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER, P.B NO.6515, CO-BANK TOWERS, PALAYAM, THIRUVANATHAPURAM, PIN – 695 033. BY ADVS. CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT SRI.P.C.SASIDHARAN, SC, KOLLAM DISTRICT CO-OPERATIVE BANK LTD. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.11.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 34810 OF 2022 2 JUDGMENT Petitioner is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. Aggrieved by Ext.P2 order of assessment relating to assessment year 2019-20, petitioner has preferred an appeal before the 4th respondent, a copy of which is produced as Ext.P5. A petition for stay of proceedings pursuant to the assessment order has also been filed as Ext.P6. 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 3rd 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] now governs the field thereby rendering the assessment itself as incorrect. 3. The learned counsel appearing for the respondent Department states that the petitioner is clearly not entitled to deduction under Section 80P as the petitioner did not file the WP(C) NO. 34810 OF 2022 3 return for the relevant assessment year in time. 4. Faced with this situation, the learned counsel appearing for the petitioner states that the petitioner intends to make an application for condoning the delay in filing the return for the relevant assessment year under Section 119(2)(b) of the Income Tax Act. 5. Having regarding to the submissions made above, this writ petition is disposed of directing the 4th respondent Tribunal to consider and pass orders on Ext.P6 application within a period of two months from the date of receipt of a certified copy of this judgment. Till such time as orders are passed on Ext.P6, any proceedings for recovery of amounts due from the petitioner under Ext.P2 order of assessment shall be kept in abeyance. The writ petition is disposed of as above. Sd/- GOPINATH P. JUDGE DK WP(C) NO. 34810 OF 2022 4 APPENDIX OF WP(C) 34810/2022 PETITIONER EXHIBITS Exhibit-P1 A TRUE COPY OF THE ACKNOWLEDGEMENT 03- 03-2020 WITH RESPECT TO THE FILING OF RETURNS FOR THE ASSESSMENT YEAR 2019- 2020 DATED 03-03-2020 Exhibit-P2 A TRUE COPY OF THE INTIMATION ISSUED UNDER SECTION 143 (1) DATED 23-02-2021 FOR THE ASSESSMENT YEAR 2019-2020 Exhibit-P3 A TRUE COPY OF THE JUDGMENT DATED 12- 03-2021 IN WP(C) NO.6377 OF 2021 OF THIS HON'BLE COURT Exhibit-P4 A TRUE COPY OF THE ORDER DATED 21-09- 2022 ISSUED BY THE 3RD RESPONDENT Exhibit-P5 A TRUE COPY OF THE APPEAL MEMORANDUM ALONG WITH AFFIDAVIT AND CHELAN DATED 21-10-2022, FILED BY THE PETITIONER BEFORE THE 4TH RESPONDENT Exhibit-P6 A TRUE COPY OF THE STAY PETITION DATED 21-10-2022 FILED IN EXT-P5 APPEAL Exhibit-P7 A TRUE COPY OF THE JUDGMENT DATED 19- 07-2019 IN W.A NO.1639 OF 2019 Exhibit-P8 A TRUE COPY OF THE JUDGMENT DATED 11- 07-2022 IN WP(C) NO.22397 OF 2022 OF THIS HON'BLE COURT "