The Chirayinkeezhu Service Co-operative Bank Ltd. No.1155 V. Assessment Unit, Income Tax Department National Faceless Assessment Centre, Delhi and The Income Tax Officer, Ward-2 (5), Office of the Joint Commissioner of Income Tax, Range-2, Aayakar Bhavan, Kowdiar P.O, Thiruvananthapuram District and The Commissioner of Income Tax (Appeals) National Faceless Appeal Centre, North Block, Delhi

WP(C)/10783/2024

AI Insights

The case involves the Chirayinkeezhu Service Co-operative Bank Ltd., which is a Primary Agricultural Credit Society, contesting a penalty imposed by the Income Tax Department. The penalty was related to the rejection of the bank's claim for deduction under Section 80P of the Income Tax Act, 1961, on the grounds that the bank did not meet the criteria of a Primary Agricultural Credit Society as required under the Kerala Co-operative Societies Act. The bank appealed against the penalty and simultaneously filed a stay petition. The court's decision focused on the procedural aspect of staying the recovery of the penalty while the appeal was being considered.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 672416 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 15-03-2024
• Assessment Year: misc
• Other Referred Cases: WP(C) NO.18484 OF 2019, WP(C) NO.5205 OF 2020
• Laws Referred To: Kerala Co-operative Societies Act, 1969, Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: P G JAYASHANKAR
• Assessee Lawyers: ARJUN POOJA PANKAJ
• Keywords: Income Tax; Penalty; Primary Agricultural Credit Society; Stay of recovery
• Section: 143(3); 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 15TH DAY OF MARCH 2024 / 25TH PHALGUNA, 1945 WP(C) NO. 10783 OF 2024 PETITIONER/S: THE CHIRAYINKEEZHU SERVICE CO-OPERATIVE BANK LTD. NO.1155 REPRESENTED BY ITS SECRETARY-IN-CHARGE, CHIRAYINKEEZHU P.O, THIRUVANANTHAPURAM DISTRICT., PIN - 695304 BY ADVS. ARJUN RAGHAVAN T.R.HARIKUMAR POOJA PANKAJ RESPONDENT/S: 1 ASSESSMENT UNIT, INCOME TAX DEPARTMENT NATIONAL FACELESS ASSESSMENT CENTRE, DELHI, ROOM NO 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI., PIN - 110003 2 THE INCOME TAX OFFICER, WARD-2 (5) OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX, RANGE-2, AAYAKAR BHAVAN, KOWDIAR P.O, THIRUVANANTHAPURAM DISTRICT., PIN - 695003 3 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, NORTH BLOCK, DELHI., PIN - 110001 SRI. P G JAYASHANKAR (SR SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 10783 OF 2024 2 JUDGMENT Petitioner is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. Assessment was completed against the petitioner under the provisions of Section 143 (3) of the Income Tax Act, 1961. 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 the petitioner satisfied the ingredients of the Primary Agricultural Credit Society as contemplated under the Kerala Co-operative Societies Act. Thereafter, penalty proceedings were initiated and Ext.P2 penalty order along with a demand notice was also issued on 28.03.2023. The only relief sought for is a stay of recovery of penalty pending consideration of Ext.P5 stay petition in Ext.P4 appeal, by the Appellate Authority. 2. Heard Sri. P G. Jaya Shankar, the learned Standing Counsel appearing for the Income Tax Department also. 3. Since the petitioner has preferred Ext.P4 appeal along with Ext.P5 stay petition before the 3rd respondent against Ext.P2, this writ petition will stand disposed of, directing the 3rd respondent to consider and pass orders on WP(C) NO. 10783 OF 2024 3 Ext.P5, after affording an opportunity of hearing to the petitioner. Till such time as orders are passed on Ext.P5, recovery of any amount pursuant to Ext.P2 shall remain stayed. The writ petition is disposed of as above. Sd/- GOPINATH P. JUDGE ajt WP(C) NO. 10783 OF 2024 4 APPENDIX OF WP(C) 10783/2024 PETITIONER EXHIBITS Exhibit-P1 A TRUE COPY OF THE DEMAND NOTICE DATED 14-07- 2022 ISSUED BY THE 1ST RESPONDENT Exhibit-P2 A TRUE COPY OF THE PENALTY ORDER ALONG WITH DEMAND NOTICE DATED 28-03-2023 ISSUED BY THE 1ST RESPONDENT Exhibit-P3 A TRUE COPY OF THE COMPUTATION SHEET DATED 28-03-2023 Exhibit-P4 A TRUE COPY OF THE ONLINE APPEAL DATED 13-03- 2024 FILED BEFORE THE 3RD RESPONDENT, AGAINST EXT-P2 PENALTY ORDER Exhibit-P5 A TRUE COPY OF STAY PETITION ALONG WITH ACKNOWLEDGMENT DATED 13-03-2024 PREFERRED BY THE PETITIONER IN EXT-P4 APPEAL Exhibit-P6 A TRUE COPY OF THE NOTICE DATED 28-11-2023 ISSUED BY THE 2ND RESPONDENT Exhibit-P7 A TRUE COPY OF THE JUDGMENT DATED 08-07-2019 IN WP(C) NO.18484 OF 2019 Exhibit-P8 A TRUE COPY OF THE JUDGMENT DATED 24-02-2020 IN WP(C) NO.5205 OF 2020 "