The Nellimoodu Service Co-operative Bank Ltd. No.2639 V. Assessment Unit, Income Tax Department National Faceless Assessment Centre, Delhi and The Income Tax Officer, Ward-2(2) and The Registrar Income Tax Appellate Tribunal, Cochin Bench

WP(C)/10676/2024

AI Insights

The case involves the Nellimoodu Service Co-operative Bank Ltd., which is contesting an assessment order issued by the Income Tax Department, rejecting their claim for deduction under Section 80P of the Income Tax Act. The primary contention revolves around the classification of the bank as a 'Primary Agricultural Credit Society' under the Kerala Co-operative Societies Act, 1969. After the initial rejection and subsequent dismissal of their appeal by the first appellate authority, the bank sought relief from the Income Tax Appellate Tribunal, which included a stay on the recovery of the assessed amounts. The High Court's intervention was sought to expedite the decision on the stay petition to prevent immediate financial repercussions on the bank pending the final decision on the appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 799408 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 15-03-2024
• Assessment Year: misc
• Other Referred Cases: W.A No.1639 of 2019, WP(C) No.22397 of 2022
• Laws Referred To: Kerala Co-operative Societies Act, 1969
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: P G JAYASHANKAR
• Assessee Lawyers: ARJUN POOJA PANKAJ
• Keywords: Assessment Order; Deduction; Income Tax; Primary Agricultural Credit Society; Stay Petition
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 15TH DAY OF MARCH 2024 / 25TH PHALGUNA, 1945 WP(C) NO. 10676 OF 2024 PETITIONER/S: THE NELLIMOODU SERVICE CO-OPERATIVE BANK LTD. NO.2639 REPRESENTED BY ITS SECRETARY, NELLIMOODU P.O, THIRUVANANTHAPURAM DISTRICT, PIN - 695524 BY ADVS. ARJUN RAGHAVAN T.R.HARIKUMAR POOJA PANKAJ RESPONDENT/S: 1 ASSESSMENT UNIT, INCOME TAX DEPARTMENT NATIONAL FACELESS ASSESSMENT CENTRE, DELHI, ROOM NO 401, 2 ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI, PIN - 110003 2 THE INCOME TAX OFFICER, WARD-2(2), OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, KAWDIAR P.O, THIRUVANANTHAPURAM, PIN - 695003 3 THE REGISTRAR INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, KENDRIYA BHAVAN, BLOCK NO.C1 & C2, 1 ST FLOOR, KAKKANAD, COCHIN, PIN - 682030 BY ADV ADV. P.G. JAYASHANKAR -SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 10676 OF 2024 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 27.09.2021. 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. The appeal filed by the petitioner before the 1st Appellate Authority was dismissed by Ext.P2 order. The petitioner has therefore approached the Income Tax Appellate Tribunal by filing Ext.P3 appeal and Ext.P4 stay petition. The only limited relief now sought for by the petitioner is to stay recovery of amounts payable by the petitioner in terms of Ext.P1 order of assessment as confirmed by Ext.P2 order of the first Appellate Authority, pending consideration of Ext.P3 appeal and Ext.P4 stay petition. 2. Heard the learned Standing Counsel appearing for the Income Tax Department also. WP(C) NO. 10676 OF 2024 3 3. Having considered the submission of the learned counsel for the petitioner and the learned Standing Counsel appearing for the respondent-Department, I am of the opinion that this writ petition itself can be disposed of with a direction. Accordingly, there will be a direction to the Income Tax Appellate Tribunal to consider and pass appropriate orders on Ext.P4 stay petition, within a period of two months from the date of receipt of a certified copy of this judgment. Till such time as a decision is taken on Ext.P4, all coercive proceedings initiated against the petitioner pursuant to Ext.P1 assessment order (as confirmed by Ext.P2 order of the first appellate authority), shall be kept in abeyance. The writ petition is disposed of as above. Sd/- GOPINATH P. JUDGE ajt WP(C) NO. 10676 OF 2024 4 APPENDIX OF WP(C) 10676/2024 PETITIONER EXHIBITS Exhibit-P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 2014-2015 DATED 27-09-2021 Exhibit-P2 A TRUE COPY OF THE ORDER DATED 20-12-2023 ISSUED BY THE FIRST APPELLATE AUTHORITY Exhibit-P3 A TRUE COPY OF THE APPEAL MEMORANDUM DATED 12-01-2024 ALONG WITH CHELAN, FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT TRIBUNAL Exhibit-P4 A TRUE COPY OF THE STAY PETITION ALONG WITH AFFIDAVIT FILED IN EXT-P3 APPEAL, DATED 12- 01-2024 Exhibit-P5 A TRUE COPY OF THE JUDGMENT DATED 19-07-2019 IN W.A NO.1639 OF 2019 OF THIS HON'BLE COURT Exhibit-P6 A TRUE COPY OF THE JUDGMENT DATED 11-07-2022 IN WP(C) NO.22397 OF 2022 OF THIS HON'BLE COURT "