THE PAZHAVANGADIKARA SERVICE CO-OPERATIVE BANK LTD V. THE INCOME TAX OFFICER,

WP(C)/42106/2022

AI Insights

The case involves the Pazhavangadikara Service Co-operative Bank Ltd., a Primary Agricultural Credit Society, which contested the rejection of its claim for deduction under Section 80P of the Income Tax Act in two separate assessment orders issued by the Income Tax Officer and the Additional/Joint/Deputy Assessment of Income Tax. The petitioner argued that the Supreme Court's judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, which supports their claim, should render the assessment orders incorrect. The appeals against the assessment orders were pending before the National Faceless Appeal Centre when the writ petition was filed. The High Court's decision focused on ensuring a timely resolution of these appeals and preventing any immediate coercive actions based on the disputed assessment orders.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 749905 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 22-12-2022
• 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: SANTHOSH ABRAHAM
• 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 GOPINATH P. THURSDAY, THE 22ND DAY OF DECEMBER 2022 / 1ST POUSHA, 1944 WP(C) NO. 42106 OF 2022 PETITIONER: THE PAZHAVANGADIKARA SERVICE CO-OPERATIVE BANK LTD II/453A, PAZHAVANGADI P.O., RANNY, PATHANAMTHITTA, PIN – 673 121. REPRESENTED BY ITS SECRETARY SREEKUMAR P. S. BY ADV SANTHOSH P.ABRAHAM RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD NO. I AND TPS, THIRUVALLA., PIN – 689 101. 2 THE ADDITIONAL/JOINT/ DEPUTY ASSESSMENT OF INCOME TAX/ INCOME TAX OFFICER, NATIONAL E. ASSESSMENT CENTRE, NEW DELHI., PIN – 110 001. 3 THE NATIONAL FACELESS APPEAL CENTRE, NEW DELHI, PIN – 100 001. REPRESENTED BY PRINCIPAL CHIEF COMMISSIONER. BY ADV JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.12.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.42106/2022 -:2:- JUDGMENT Petitioner is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. Exts.P1 & P2 assessment orders were issued against the petitioner on 31-12-2019 & 21-09-2022 respectively. In the assessment orders, 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 3rd respondent, petitioner has sought to canvas 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 appeals as Exts.P3 and P4 and the same are pending consideration before the 3rd respondent, I deem it fit that this writ W.P.(C) No.42106/2022 -:3:- 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 3rd respondent to consider and pass appropriate orders on Exts.P3 and P4 as expeditiously as possible. 5. Till the disposal of the appeal, no coercive steps shall be initiated against the petitioner pursuant to Exts.P1& P2 assessment orders. The writ petition is disposed of as above. Sd/- GOPINATH P . JUDGE ats W.P.(C) No.42106/2022 -:4:- APPENDIX OF WP(C) 42106/2022 PETITIONER EXHIBITS Exhibit P-1 TRUE COPY OF THE ASSESSMENT ORDER NO.AAAAT6882G/2017-18 DATED 31-12-2019 ISSUED BY THE 1ST RESPONDENT Exhibit P-2 TRUE COPY OF THE ASSESSMENT ORDER NO. AAAAT6882G/2020-21 DATED 21-09-2022 WITH THE COMPUTATION SHEET ISSUED BY THE 2ND RESPONDENT Exhibit P-3 RESPONDENT, NATIONAL FACELESS APPEAL CENTRE, AGAINST THE IMPUGNED ASSESSMENT ORDERS. TRUE COPY OF THE APPEAL DATED 28- 01-2020 FOR THE YEAR 2017-18 SUBMITTED BY THE PETITIONER BEFORE THE 3RD RESPONDENT Exhibit P-4 . TRUE COPY OF THE APPEAL DATED 21-10-2022 FOR THE YEAR 2020-21 SUBMITTED BY THE PETITIONER BEFORE THE 3RD RESPONDENT Exhibit P-5 TRUE COPY OF THE STAY PETITION DATED 26-01- 2020 FOR THE YEAR 2017-18 SUBMITTED BY THE PETITIONER BEFORE THE 3RD RESPONDENT Exhibit P-6 TRUE COPY OF THE STAY PETITION DATED 20-10- 2022 FOR THE YEAR 2020-21 SUBMITTED BY THE PETITIONER BEFORE THE 3RD RESPONDENT Exhibit P-7 TRUE COPY OF THE NOTICE NO.AAAAT6882G/2020- 21 DATED 18-11-2022 ISSUED BY THE 1ST RESPONDENT "