THE ELAVALLY SERVICE CO-OPERATIVE BANK LTD NO F-1456 V. COMMISSIONER OF INCOME TAX

WP(C)/24828/2021

AI Insights

The case involves the Elavally Service Co-operative Bank Ltd., which is a Primary Agricultural Credit Society, challenging an assessment order that denied them a deduction under Section 80P of the Income Tax Act. The assessment order, issued on April 29, 2021, was contested by the petitioner on the grounds that the assessing officer did not consider a relevant Supreme Court judgment (Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax) which was delivered shortly before the assessment order. The petitioner had already filed an appeal against the assessment order, which was pending before the Commissioner of Income Tax National Faceless Appeal Centre. The High Court's intervention was sought to expedite the appeal process and prevent any immediate coercive actions based on the assessment order.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 751688 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 11-11-2021
• 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, Section 80P
• Result in Favour of: Others
• Court: HIGH COURT
• 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 BECHU KURIAN THOMAS THURSDAY, THE 11TH DAY OF NOVEMBER 2021 / 20TH KARTHIKA, 1943 WP(C) NO. 24828 OF 2021 PETITIONER: THE ELAVALLY SERVICE CO-OPERATIVE BANK LTD NO F-1456 H.O.VAKA, THRISSUR-680602,REPRESENTED BY ITS SECRETARY. BY ADV P.C.SASIDHARAN RESPONDENTS: 1 COMMISSIONER OF INCOME TAX NATIONAL FACELESS APPEAL CENTRE, DELHI-110001. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, O/O THE PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, MANANCHIRA, KOZHIKODE, KERALA-673001. 3 THE INCOME TAX OFFICER, WARD 1 & TPS, CITY PLAZA, INCOME TAX OFFICE, WEST NADA, GURUVAYOOR, KERALA-680101. OTHER PRESENT: SRI.JOSE JOSEPH,SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.11.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 24828 OF 2021 2 BECHU KURIAN THOMAS, J .............................................… W.P.(C) NO.24828 OF 2021 …........................................ Dated this the 11th day of November, 2021 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 29.04.2021. 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 canvass that the judgment of the Supreme Court in Mavilayi Service Co- operative Bank Ltd. v. Commissioner of Income Tax [2021 (1) KLT 485] was not considered by the assessing officer though the assessment order was rendered subsequent to the Supreme Court Judgment. WP(C) NO. 24828 OF 2021 3 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. 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/- BECHU KURIAN THOMAS JUDGE AJM WP(C) NO. 24828 OF 2021 4 APPENDIX OF WP(C) 24828/2021 PETITIONER’S EXHIBITS : Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 29/04/2021. Exhibit P2 TRUE COPY OF DEMAND NOTICE DATED 29/04/2021. Exhibit P3 TRUE COPY OF THE APPEAL DATED 04/05/2021. Exhibit P4 TRUE COPY OF THE ACKNOWLEDGMENT OF RECEIPT OF FORM EVIDENCING OF FILING APPEAL DATED 04/05/2021. Exhibit P5 TRUE COPY OF THE STAY PETITION DATED 19/5/2021. Exhibit P6 TRUE COPY OF THE ORDER ISSUED BY THE 3RD RESPONDENT DATED 28/10/2021. Exhibit P7 TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER DATED 03/11/2021 BEFORE THE 2ND RESPONDENT. Exhibit P8 TRUE COPY OF THE JUDGMENT DATED 1/7/2019 IN W.A.1536 OF 2019. Exhibit P9 TRUE COPY OF THE JUDGMENT IN W.P(C)NO.22073/2021 DATED 13/10/2021. RESPONDENT’S EXHIBITS : NIL AJM //TRUE COPY// PA TO JUDGE "