THE KATTOOR SERVICE CO-OPERATIVE BANK LTD V. THE INCOME TAX OFFICER

WP(C)/23759/2022

AI Insights

The case involves The Kattoor Service Co-operative Bank Ltd, a Primary Agricultural Credit Society, which contested the rejection of its claim for deduction under Section 80P of the Income Tax Act. The assessment orders, issued by the Income Tax Officer, rejected the deduction claim on the grounds that the petitioner did not satisfy the criteria of a Primary Agricultural Credit Society as required under the Kerala Co-operative Societies Act. The petitioner argued that a Supreme Court judgment in a similar case (Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax) supported their position. The High Court of Kerala, upon hearing the writ petition, decided to direct the Appellate Authority to expedite the consideration of the pending appeals and prohibited any coercive actions based on the disputed assessment orders and demand notices until the appeals were resolved.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 762483 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 22-07-2022
• 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, Section 80P
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: JOJO JOSEPH
• 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. FRIDAY, THE 22ND DAY OF JULY 2022 / 31ST ASHADHA, 1944 WP(C) NO. 23759 OF 2022 PETITIONERS: THE KATTOOR SERVICE CO-OPERATIVE BANK LTD NO.426, KATTOOR P O, THRISSUR DISTRICT, KERALA, PIN-680 702. REPRESENTED BY ITS SECRETARY VIJAYAKUMAR T V. BY ADVS. C.A.JOJO MATHEWS JOSEPH RESPONDENTS: 1 THE INCOME TAX OFFICER WARD2 (1), AYAKAR BHAVAN, SAKTHAN STAND, THRISSUR-680 001. 2 THE COMMISSIONER OF INCOME TAX ( APPEALS) NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI-110 001. 3 INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI-110001. BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.07.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.23759/2022 -:2:- JUDGMENT Petitioner is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. Exts.P1, P4 & P7 assessment orders were issued against the petitioner on 25.03.2022, 24.03.2022 & 25.03.2022 respectively. 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 orders 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. Since the petitioner has already preferred appeals as Exts.P3, P6 & P9 and the same are pending W.P.(C) No.23759/2022 -:3:- consideration before the 3rd respondent, I deem it fit that this writ petition be disposed of directing the Appellate Authority to consider the appeals in a time bound manner. 4. Accordingly, there will be a direction to the 3rd respondent to consider and pass appropriate orders on Ext.P3, P6 & P9 as expeditiously as possible. 5. Till the disposal of the appeals, no coercive steps shall be initiated against the petitioner pursuant to Ext.P1, P4 & P7 assessment orders and Exts.P2, P5 & P8 demand notices. The writ petition is disposed of as above. Sd/- GOPINATH P . JUDGE ats W.P.(C) No.23759/2022 -:4:- APPENDIX OF WP(C) 23759/2022 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE ASSESSMENT ORDER AY 2014- 15 DATED 25.03.2022 ISSUED BY THE 3RD RESPONDENT Exhibit P2 A TRUE COPY OF THE DEMAND NOTICE DATED 25.03.2022 ISSUED BY THE 3RD RESPONDENT Exhibit P3 A TRUE COPY OF THE APPEAL FOR AY 2014-15 FILED BEFORE THE 2ND RESPONDENT DATED 15.07.2022 Exhibit P4 A TRUE COPY OF THE ASSESSMENT ORDER AY 2015- 16 DATED 24.03.2022 ISSUED BY THE 3RD RESPONDENT Exhibit P5 A TRUE COPY OF THE DEMAND NOTICE DATED 24.03.2022 ISSUED BY THE 3RD RESPONDENT Exhibit P6 A TRUE COPY OF THE APPEAL FOR AY 2015-16 FILED BEFORE THE 2ND RESPONDENT DATED 15.07.2022 Exhibit P7 A TRUE COPY OF THE ASSESSMENT ORDER AY 2016- 17 DATED 25.03.2022 ISSUED BY THE 3RD RESPONDENT Exhibit P8 A TRUE COPY OF THE DEMAND NOTICE DATED 25.03.2022 ISSUED BY THE 3RD RESPONDENT Exhibit P9 A TRUE COPY OF THE APPEAL FOR AY 2016-17 FILED BEFORE THE 2ND RESPONDENT DATED 15.07.2022 Exhibit P10 A TRUE COPY OF THE DEMAND NOTICE FOR AN AMOUNT OF RS.90,83, 94,980/-FOR AYS 2014-15 TO 2016-17 ISSUED BY THE 1ST RESPONDENT DATED 04.07.2022 "