THE PERINGANDOOR SERVICE CO-OPERATIVE BANK LTD 297 V. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/37045/2022

AI Insights

The case involves The Peringandoor Service Co-operative Bank Ltd., a Primary Agricultural Credit Society, which contested an assessment order rejecting its claim for deduction under Section 80P of the Income Tax Act. The rejection was based on the lack of evidence satisfying the criteria of a Primary Agricultural Credit Society as per the Kerala Co-operative Societies Act. The petitioner appealed against the assessment order, citing a relevant Supreme Court judgment that influenced the interpretation of the applicable laws. The High Court of Kerala, upon hearing the writ petition, directed the Income Tax Commissioner (Appeals) to expedite the appeal process and refrain from any coercive actions against the petitioner until the appeal is resolved.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 750485 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 21-11-2022
• 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: CHRISTOPHER ABRAHAM
• 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. MONDAY, THE 21ST DAY OF NOVEMBER 2022 / 30TH KARTHIKA, 1944 WP(C) NO. 37045 OF 2022 PETITIONER: 1 THE PERINGANDOOR SERVICE CO-OPERATIVE BANK LTD 297 ATHANI POST OFFICE, THRISSUR,PIN – 680581 REPRESENTED BY ITS SECRETARY. BY ADV P.C.SASIDHARAN RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, ROOM NO. 356, C.R. BUILDING, IP ESTATE, DELHI- 110002., 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 II AAYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, MUNICIPAL OFFICE ROAD, THRISSUR, KERALA 680001., PIN - 680001 BY ADV CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.11.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.37045 of 2022 2 JUDGMENT Dated this the 21st day of November, 2022 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. 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 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. WPC No.37045 of 2022 3 3. Since the petitioner has already preferred an appeal as Ext.P3 and the same is pending consideration before the Commissioner of Income Tax (Appeals) (1st respondent), I deem it fit that this writ petition be disposed of directing the 1st respondent to consider the appeal in a time bound manner. 4. Accordingly, there will be a direction to the 1st respondent to consider and pass appropriate orders on Ext.P3, as expeditiously as possible within a period of 2 months from the date of receipt of a copy of this judgment. 5. Till the disposal of the appeal, no coercive steps shall be initiated against the petitioner pursuant to Ext.P1. The writ petition is disposed of as above. Sd/- GOPINATH P. JUDGE SKP/21-11 WPC No.37045 of 2022 4 APPENDIX OF WP(C) 37045/2022 PETITIONER’S EXHIBITS: EXHIBIT P1 THE TRUE COPY OF THE ASSESSMENT ORDER DURING THE ASSESSMENT YEAR 2020-2021 DATED 07/09/2022 EXHIBIT P2 THE TRUE COPY OF THE DEMAND NOTICE DATED 07/09/2022 EXHIBIT P3 THE TRUE COPY OF THE APPEAL DATED 02/10/2022 EXHIBIT P4 THE TRUE COPY OF THE ACKNOWLEDGMENT RECEIPT OF INCOME TAX FORMS SHOWING THE FILING OF THE APPEAL ON 02/10/2022 EXHIBIT P5 THE TRUE COPY OF THE STAY PETITION DATED 01/10/2022 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT EXHIBIT P6 THE TRUE COPY OF THE JUDGMENT IN W.A.NO.1536 OF 2019 DATED 1/7/2019 EXHIBIT P7 THE TRUE COPY OF THE JUDGMENT IN W.P(C) NO.14282/2021 DATED 19/7/2021 EXHIBIT P8 THE TRUE COPY OF THE JUDGMENT IN W.P(C) NO. 34067/2022 DATED 27/10/2022 RESPONDENTS' EXHIBITS:NIL TRUE COPY P.A.TO JUDGE "