THE KOONAMMOOCHI PEOPLES SERVICE CO- OPERATIVE BANK LTD.NO. 603 V. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/39031/2022

AI Insights

The case involves the Koonammoochi Peoples Service Co-operative Bank Ltd., which is contesting an assessment order that denied them a deduction under Section 80P of the Income Tax Act. The assessment order, issued on September 26, 2022, claimed that the bank did not meet the criteria of a Primary Agricultural Credit Society as required under the Kerala Co-operative Societies Act. The petitioner appealed against this order, citing a relevant Supreme Court judgment that they believe supports their case. The High Court of Kerala, upon hearing the writ petition, decided to direct the appellate authority to expedite the consideration of the appeal and to refrain from taking any coercive actions based on the assessment order until the appeal is resolved.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 750113 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 05-12-2022
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Co-operative Bank Ltd. and others v. Commissioner of Income Tax and another [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: P C SASIDHARAN
• Keywords: Appeal; Assessment Order; Deduction; Income Tax; Primary Agricultural Credit Society; Time Bound Consideration
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. MONDAY, THE 5TH DAY OF DECEMBER 2022 / 14TH AGRAHAYANA, 1944 WP(C) NO. 39031 OF 2022 PETITIONER: THE KOONAMMOOCHI PEOPLES SERVICE CO-OPERATIVE BANK LTD.NO.603, KOONAMMOOCHI.P.O, THRISSUR-680504, REPRESENTED BY ITS SECRETARY. BY ADV P.C.SASIDHARAN RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, ROOM NO. 356, C.R. BUILDING, IP ESTATE, DELHI- 110 002. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, O/O THE PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, MANANCHIRA, KOZHIKODE, KERALA – 673 001. 3 THE INCOME TAX OFFICER, WARD 1 & AMP; TPS, GURUVAYOOR, OFFICE OF THE INCOME TAX OFFICER, WEST NADA, GURUVAYOOR, THRISSUR -680 101. BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.12.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 39031 OF 2022 2 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 26.09.2022. 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 canvas that the judgment of the Supreme Court in Mavilayi Service Co- operative Bank Ltd. and others v. Commissioner of Income Tax and another [2021 (1) KLT 485] now governs the field thereby rendering the assessment itself as incorrect. 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. WP(C) NO. 39031 OF 2022 3 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/- GOPINATH P. JUDGE DK WP(C) NO. 39031 OF 2022 4 APPENDIX OF WP(C) 39031/2022 PETITIONER EXHIBITS Exhibit P1 THE TRUE COPY OF THE ASSESSMENT ORDER DURING THE ASSESSMENT YEAR 2020- 2021DATED26/09/2022 Exhibit P2 THE TRUE COPY OF THE DEMAND NOTICE DATED 26/09/2022 Exhibit P3 THE TRUE COPY OF THE APPEAL DATED 22/10/2022 Exhibit P4 THE TRUE COPY OF THE ACKNOWLEDGEMENT RECEIPT OF INCOME TAX FORMS SHOWING THE FILING OF THE APPEAL ON 22/10/2022 Exhibit P5 THE TRUE COPY OF THE STAY PETITION DATED 22/10/2022 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT Exhibit P6 THE TRUE COPY OF THE JUDGMENT IN W.A.NO.1536 OF 2019 DATED 1/7/2019 Exhibit P7 THE TRUE COPY OF THE JUDGMENT IN W.P(C) NO.14282/2021 DATED 19/7/2021 Exhibit P8 THE TRUE COPY OF THE JUDGMENT IN W.P(C) NO. 34067/2022 DATED 27/10/2022 "