THE CHENDAMAGALAM SERVICE CO-OPERATIVE BANK LTD. NO.132 V. ASSESSING OFFICER/INCOME TAX OFFICER, ASSESSING UNIT INCOME TAX DEPARTMENT

WP(C)/2937/2023

AI Insights

The case involves the Chendamagalam Service Co-operative Bank Ltd., which is a primary agricultural credit society, challenging an assessment order issued by the Income Tax Department. The assessment order rejected the bank's claim for deduction under Section 80P of the Income Tax Act, citing insufficient evidence that the bank satisfied the conditions stipulated under the Kerala Cooperative Societies Act. The petitioner had already filed an appeal against this order, which was pending before the 2nd respondent. The court, referencing a Supreme Court judgment, directed the 2nd respondent to expedite the consideration of the appeal and refrain from initiating any coercive actions against the petitioner until the appeal is resolved.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 680188 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 30-01-2023
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Cooperative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485
• Laws Referred To: Kerala Cooperative Societies Act, 1969
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: M M MONAYE; M VARGHESE; K V SANOSH; ANJANA SUGUNAN
• 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 T.R.RAVI MONDAY, THE 30TH DAY OF JANUARY 2023 / 10TH MAGHA, 1944 WP(C) NO. 2937 OF 2023 PETITIONER: THE CHENDAMAGALAM SERVICE CO-OPERATIVE BANK LTD. NO.132 REPRESENTED BY ITS SECRETARY IN CHARGE, CHENDAMAGALAM P.O, ERNAKULAM DISTRICT, PIN – 683 521 BY ADVS. M.M.MONAYE M.PAUL VARGHESE K.V.SANOSH ANJANA SUGUNAN RESPONDENTS: 1 ASSESSING OFFICER/INCOME TAX OFFICER, ASSESSING UNIT INCOME TAX DEPARTMENT NATIONAL E-ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL STADIUM, DELHI , PIN – 110 003 2 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE (NFAC) INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, JAWAHARLAL STADIUM, DELHI , PIN – 110 003 3 PRINCIPAL COMMISSIONAR OF INCOME TAX, KERALA, C.R. BUILDING, I.S. PRESS ROAD, KOCHI, PIN – 682 018 4 THE INCOME TAX OFFICER WARD - 2, TPS, KAP COMMERCIAL COMPLEX , O/O ADDITIONAL COMMISSIONER OF INCOME TAX ALUVA RANGE, R.S. ROAD, ALUVA, PIN – 683 101 SRI. JOSE JOSEPH, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 2937 OF 2023 2 T . R. RA V I , J . - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - WP ( C ) No . 2 9 3 7 o f 2 0 2 3 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Da t e d t h i s t h e 3 0 t h d a y o f J a n u a r y , 2 0 2 3 J UDGME NT P e t i t i o n e r i s a P r i ma r y A g r i c u l t u r a l C r e d i t S o c i e t y r e g i s t e r e d u n d e r t h e K e r a l a C o o p e r a t i v e S o c i e t i e s A c t , 1 9 6 9 . E x t . P 1 o r d e r o f a s s e s s me n t wa s i s s u e d a g a i n s t t h e p e t i t i o n e r . I n t h e a s s e s s me n t o r d e r , p e t i t i o n e r ' s c l a i m f o r d e d u c t i o n u n d e r S e c t i o n 8 0 P wa s r e j e c t e d o n t h e g r o u n d t h a t t h e r e wa s n o e v i d e n c e t o s h o w t h a t t h e p e t i t i o n e r s a t i s fi e d t h e i n g r e d i e n t s o f t h e P r i ma r y A g r i c u l t u r a l C r e d i t S o c i e t y a s c o n t e mp l a t e d u n d e r t h e K e r a l a C o - o p e r a t i v e S o c i e t i e s A c t . 2 . Wh i l e a s s a i l i n g t h e a s s e s s me n t o r d e r b e f o r e t h e 2 n d r e s p o n d e n t , p e t i t i o n e r r e l i e d o n t h e j u d g me n t o f t h e S u p r e me C o u r t i n Ma v i l a y i S e r v i c e C o o p e r a t i v e B a n k L t d . v . C o mmi s s i o n e r o f I n c o me T a x ; 2 0 2 1 ( 1 ) KL T 4 8 5 t o s u b mi t t h a t t h e a s s e s s me n t i t s e l f i s i n c o r r e c t . 3 . S i n c e t h e p e t i t i o n e r h a s a l r e a d y p r e f e r r e d a n a p p e a l a s E x t . P 3 a l o n g wi t h t h e a p p l i c a t i o n t o c o n d o n e t h e d e l a y i n fi l i n g t h e a p p e a l a n d t h e s a me i s p e n d i n g c o n s i d e r a t i o n b e f o r e t h e WP(C) NO. 2937 OF 2023 3 2 n d r e s p o n d e n t , I d e e m i t fi t t h a t t h i s wr i t p e t i t i o n b e d i s p o s e d o f d i r e c t i n g t h e 2 n d r e s p o n d e n t t o c o n s i d e r t h e a p p e a l i n a t i me b o u n d ma n n e r . 4 . A c c o r d i n g l y , t h e r e wi l l b e a d i r e c t i o n t o t h e 2 n d r e s p o n d e n t t o c o n s i d e r a n d p a s s a p p r o p r i a t e o r d e r s o n E x t . P 3 , a s e x p e d i t i o u s l y a s p o s s i b l e wi t h i n a p e r i o d o f 2 mo n t h s f r o m t h e d a t e o f r e c e i p t o f a c o p y o f t h i s j u d g me n t . 5 . T i l l t h e d i s p o s a l o f t h e a p p e a l , n o c o e r c i v e s t e p s s h a l l b e i n i t i a t e d a g a i n s t t h e p e t i t i o n e r p u r s u a n t t o E x t . P 1 . I t i s ma d e c l e a r t h a t t h e a p p e l l a t e a u t h o r i t y n e e d s t o c o n s i d e r t h e a p p e a l o n me r i t s o n l y i f h e d e c i d e s t o c o n d o n e t h e d e l a y i n fi l i n g t h e a p p e a l . S d / - T . R. RA V I s n J UDGE WP(C) NO. 2937 OF 2023 4 APPENDIX OF WP(C) 2937/2023 PETITIONER'S EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 19.09.2022 FOR THE AY 2020-21 Exhibit P2 TRUE COPY OF THE DEMAND NOTICE DATED 19.09.2022 Exhibit P3 TRUE COPY OF THE MEMORANDUM OF APPEAL IN FORM 35 DATED 28.11.2022. Exhibit P4 TRUE COPY OF THE THE ACKNOWLEDGMENT RECEIPT DATED 28.11.2022.. Exhibit P5 TRUE COPY OF THE PETITION FOR STAY DATED 28.11.2022, FILED BY THE PETITIONER. Exhibit P6 TRUE COPY OF THE THE E PROCEEDINGS RESPONSE ACKNOWLEDGMENT NUMBERED AS 827075311301122 Exhibit P7 TRUE COPY OF THE JUDGMENT IN WPC 41580 OF 2022 DATED 21.12.2022 RESPONDENT'S EXHIBITS : NIL //TRUE COPY// PA TO JUDGE "