THE MANNARKKAD RURAL SERVICE CO-OPERATIVE BANK LTD, V. THE ADDITIONAL/JOINT/DEPUTY/ ASST. COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER

WP(C)/4202/2022

AI Insights

The case involves the Mannarkkad Rural Service Co-operative Bank Ltd., which contested an assessment order rejecting its claim for deduction under Section 80P of the Income Tax Act. The assessment order, issued on 26.05.2021, was challenged on the grounds that the assessing officer did not consider a relevant Supreme Court judgment (Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others) that could have influenced the decision. The petitioner had already filed an appeal against the assessment order, which was pending before the Commissioner of Income Tax (Appeals). The High Court's intervention was sought to expedite the appeal process and prevent any immediate coercive actions based on the disputed assessment order.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 764214 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 09-02-2022
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others [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: HARISANKAR MENON; MEERA MENON
• Keywords: Appeal; Assessment Order; Coercive Steps; 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 WEDNESDAY, THE 9TH DAY OF FEBRUARY 2022 / 20TH MAGHA, 1943 WP(C) NO. 4202 OF 2022 PETITIONER: THE MANNARKKAD RURAL SERVICE CO-OPERATIVE BANK LTD, 8.767, MANNARKKAD, PALAKKAD – 678 582, REPRESENTED BY ITS SECRETARY, PURUSHOTHAMAN M. BY ADVS. HARISANKAR V. MENON MEERA V.MENON RESPONDENTS: 1 THE ADDITIONAL/JOINT/DEPUTY/ ASST. COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER NATIONAL FACELESS ASSESSMENT CENTRE, DELHI – 110001. 2 THE ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER. OF INCOME TAX, COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, DELHI – 110001. ADV.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.02.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 4202 OF 2022 2 BECHU KURIAN THOMAS, J …......….................................. W.P.(C) No.4202 of 2022 ….................................. Dated this the 9th day of February, 2022 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 26.05.2021. 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 Co-operative Societies Act. 2. While assailing the assessment order before the 2 nd respondent, petitioner has sought to canvass that the judgment of the Supreme Court in Mavilayi Service Co- operative Bank and Others v. Commissioner of Income Tax, Calicut and Others [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. 4202 OF 2022 3 3. Since the petitioner has already preferred an appeal as Ext.P4 and the same is pending consideration before the 2 nd 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 2 nd respondent to consider and pass appropriate orders on Ext.P4, 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 AMV/09/02//2022 WP(C) NO. 4202 OF 2022 4 APPENDIX OF WP(C) 4202/2022 PETITIONER EXHIBITS Exhibit P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2018-19 DATED 26.05.2021. Exhibit P2 COPY OF THE S.O NO. 3296(E) ISSUED BY THE MINISTRY OF FINANCE, NEW DELHI. DATED 25.09.2020. Exhibit P3 COPY OF THE S.O NO. 3297(E) ISSUED BY THE MINISTRY OF FINANCE, NEW DELHI DATED 25.09.2020. Exhibit P4 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 24.11.2021. Exhibit P5 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 24.11.2021. Exhibit P6 COPY OF JUDGMENT OF THIS HON'BLE COURT IN WP(C) NO. 5849/2021 DATED 08.03.2021. RESPONDENTS EXHIBITS : NIL TRUE COPY "