The Ottoor Service Co-operative Bank Ltd. No.976 V. Assessment Unit, Income Tax Department National Faceless Assessment Centre, Delhi and The Income Tax Officer, Ward-2 (1) and The Commissioner of Income Tax (Appeals) and The Commissioner of Income Tax (Appeals) National Faceless Appeal Centre, North Block, Delhi

WP(C)/10774/2024

AI Insights

The case involves the Ottoor Service Co-operative Bank Ltd., which is contesting a penalty order issued by the Income Tax Department for the assessment year 2020-21. The penalty was imposed due to the rejection of the bank's claim for deduction under Section 80P of the Income Tax Act, based on the assertion that the bank did not meet the criteria of a Primary Agricultural Credit Society as required under the Kerala Co-operative Societies Act. The bank filed an appeal against this order, which included a request to condone the delay in filing the appeal. The High Court's intervention was sought to expedite the consideration of the stay application related to the penalty during the pendency of the appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 795442 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 15-03-2024
• Assessment Year: misc
• Other Referred Cases: WP(C) No.18484 of 2019, WP(C) No.5205 of 2020
• Laws Referred To: Kerala Co-operative Societies Act, 1969, Section 80P
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: P G JAYASHANKAR
• Assessee Lawyers: ARJUN HARIKUMAR POOJA PANKAJ
• Keywords: Assessment year 2020-21; Condonation of delay; Penalty order; 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. 10774 OF 2024 PETITIONER/S: THE OTTOOR SERVICE CO-OPERATIVE BANK LTD. NO.976 REPRESENTED BY ITS SECRETARY, CHENNANKODE, VADASSERIKONAM P.O, VARKALA, THIRUVANANTHAPURAM DISTRICT., PIN - 695143 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, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI., PIN - 110003 2 THE INCOME TAX OFFICER, WARD-2 (1) OFFICE OF THE INCOME TAX OFFICER, AAYAKAR BHAVAN, KOWDIAR P.O, THIRUVANANTHAPURAM DISTRICT., PIN - 695003 3 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM., PIN - 695003 4 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, NORTH BLOCK, DELHI., PIN - 110001 BY ADV ADV. P.G. JAYASHANKAR 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. 10774 OF 2024 2 JUDGMENT Petitioner is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. Ext.P1 order of penalty for the assessment year 2020-21 along with demand notice was issued against the petitioner for the assessment year 2020-21. In the assessment order, for the same year, 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. Since the petitioner has already preferred Ext.P3 appeal along with an application to condone the delay in filing the appeal and the same is pending consideration before the 4th respondent, I deem it fit that this writ petition be disposed of directing the Appellate Authority to consider the application for condonation of delay and Ext.P5 application for stay in a time bound manner. 3. Accordingly, there will be a direction to the 4th respondent to consider and pass appropriate orders on Ext.P5, as expeditiously as possible. WP(C) NO. 10774 OF 2024 3 4. Till the disposal of Ext.P5, no coercive steps shall be initiated against the petitioner for recovery of any amounts under Ext.P1 order imposing penalty. It is made clear that the 4th respondent needs to pass orders on the merits of Ext.P5 stay petition only if he decides to condone the delay in filing the appeal. The writ petition is disposed of as above. Sd/- GOPINATH P. JUDGE ajt WP(C) NO. 10774 OF 2024 4 APPENDIX OF WP(C) 10774/2024 PETITIONER EXHIBITS Exhibit-P1 A TRUE COPY OF THE PENALTY ORDER ALONG WITH DEMAND NOTICE DATED 17-03-2023 ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2020- 2021 Exhibit-P2 A TRUE COPY OF THE COMPUTATION SHEET APPENDED IN EXT-P1 Exhibit-P3 A TRUE COPY OF THE ONLINE APPEAL DATED 10-11- 2023 FILED BEFORE THE 4TH RESPONDENT, AGAINST EXT-P1 ASSESSMENT ORDER Exhibit-P4 A TRUE COPY OF THE NOTICE DATED 03-11-2023 ISSUED BY THE 2ND RESPONDENT Exhibit-P5 A TRUE COPY OF STAY PETITION DATED 11-11-2023 PREFERRED BY THE PETITIONER IN EXT-P2 APPEAL Exhibit-P6 A TRUE COPY OF THE JUDGMENT DATED 08-07-2019 IN WP(C) NO.18484 OF 2019 Exhibit-P7 A TRUE COPY OF THE JUDGMENT DATED 24-02-2020 IN WP(C) NO.5205 OF 2020 "