THE NATTIKA SERVICE CO-OPERATIVE BANK LTD NO.R.308 V. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/34067/2022

AI Insights

The case involves The Nattika Service Co-operative Bank Ltd., which is a Primary Agricultural Credit Society, contesting an assessment order issued by the Income Tax Department. The assessment order rejected the petitioner's claim for deduction under Section 80P of the Income Tax Act, citing insufficient evidence to prove that the petitioner satisfied the criteria of a Primary Agricultural Credit Society as required under the Kerala Co-operative Societies Act. The petitioner appealed against this order, referencing a Supreme Court judgment that allegedly supports their position. 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) 768588 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 27-10-2022
• 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: 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 GOPINATH P. THURSDAY, THE 27TH DAY OF OCTOBER 2022 / 5TH KARTHIKA, 1944 WP(C) NO. 34067 OF 2022 PETITIONER/S: THE NATTIKA SERVICE CO-OPERATIVE BANK LTD NO.R.308 P.O.NATTIKA, THRISSUR - 680566, REPRESENTED BY ITS SECRETARY., PIN - 680566 BY ADV P.C.SASIDHARAN RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, ROOM NO.356 C.R. BUILDING, IP ESTATE, DELHI- 110 002., PIN - 110002 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX O/O THE PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, MANANCHIRA, KOZHIKODE, KERALA - 673001. , PIN - 673001 3 THE INCOME TAX OFFICER WARD 1 & TPS, CITY PLAZA, INCOME TAX OFFICE, WEST NADA, GURUVAYOOR, KERALA - 680 101., PIN - 680101 BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 34067 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 30.08.2022. 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 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 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. 34067 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.P3 assessment order. The writ petition is disposed of as above. sd/- GOPINATH P. JUDGE ajt WP(C) NO. 34067 OF 2022 4 APPENDIX OF WP(C) 34067/2022 PETITIONER EXHIBITS Exhibit P1 EXHIBIT-P1: TRUE COPY OF THE ASSESSMENT ORDER DATED 30/08/2022 FOR THE ASSESSMENT YEAR 2020-2021 ISSUED BY THE 1ST RESPONDENT. Exhibit P2 EXHIBIT-P2: TRUE COPY OF THE DEMAND NOTICE DATED 30/08/2022 ISSUED BY THE 1ST RESPONDENT. Exhibit P3 EXHIBIT-P3: TRUE COPY OF THE APPEAL DATED 29/9/2022 PREFERRED BEFORE THE 1ST RESPONDENT BY THE PETITIONER Exhibit P4 EXHIBIT-P4:TRUE COPY OF THE ACKNOWLEDGEMENT OF RECEIPT OF FORM SHOWING THE DATE OF FILING AS 29/9/2022 Exhibit P5 EXHIBIT-P5: TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER DATED 29/9/2022 Exhibit P6 EXHIBIT-P6: TRUE COPY OF THE JUDGMENT DATED 1/7/2019 IN W.A.1536 OF 2019 Exhibit P7 EXHIBIT P7:- TRUE COPY OF THE JUDGMENT IN W.P(C) NO.22073/2021 DATED 13/10/2021 Exhibit P8 EXHIBIT P8:- TRUE COPY OF THE JUDGMENT IN W.P(C) NO. 24804/2021 DATED 11-11-2021 "