THE PRINCIPAL COMMISSIONER OF INCOME TAX V. M/S.MATTANNUR RANGE AGRICULTURALIST AND TAPPING WORKER'S CO-OPERATIVE SOCITY

RP/597/2017

AI Insights

The review petitions RP.No. 562 & 597 of 2017 were filed by the Principal Commissioner of Income Tax against the judgments in ITA Nos. 131 and 132 of 2016. The primary contention was a factual mistake in referencing the Chirakkal Service Co-operative Bank Ltd. case, which dealt with a different section of the Income Tax Act than those applicable to the cases at hand. The court acknowledged the error but noted that the substantive issues had been resolved in favor of the respondents in a later case, ITA No. 273 of 2015. Consequently, the court decided not to alter the original judgments, emphasizing that the correct application of the law had been upheld in the subsequent decision.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 670523 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 28-11-2018
• Assessment Year: misc
• Other Referred Cases: Chirakkal Service Co-operative Bank Ltd. Vs. CIT [(2016) 384 ITR 590 (Ker.)], ITA No. 273 of 2015
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: DIVYA RAVINDRAN; T M SREEDHARAN; V P NARAYANAN
• Assessee Lawyers: CHRISTOPHER ABRAHAM; K M V PANDALAI
• Keywords: Co-operative Society; Exemption; Income Tax; Review petition; Factual Mistake
• Section: 80P2(iii); 80P(A)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON & THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN WEDNESDAY,THE 28TH DAY OF NOVEMBER 2018 / 7TH AGRAHAYANA, 1940 RP.No. 562 of 2017 IN ITA. 132/2016 AGAINST THE JUDGMENT IN ITA 132/2016 of HIGH COURT OF KERALA DATED 24-11-2016 REVIEW PETITIONERS: THE PRINCIPAL COMMISSIONER OF INCOME TAX,1ST FLOOR, AAYAKAR BHAVAN, NEW ANNEX BUILDING,(NORTH BLOCK), NANANCHIRA,KOZHIKODE-673001. BY ADVS. SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPT. SRI.K.M.V.PANDALAI INCOME TAX DEPARTMENT RESPONDENTS: M/S.MATTANNUR RANGE AGRICULTURALIST AND TAPPING WORKER'S CO-OPERATIVE SOCIETY, MATTANNUR.P.O, MATTANNUR,KANNUR DISTRICT-670101.REP.BY ITS SECRETARY,SHRI.SUDHEER KUMAR.A. BY ADVS. SMT.DIVYA RAVINDRAN SRI.T.M.SREEDHARAN (SR.) SRI.V.P.NARAYANAN THIS REVIEW PETITION HAVING COME UP FOR ADMISSION ON 28.11.2018, ALONG WITH RP.597/2017, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: RP.No. 562 & 597 of 2017 2 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON & THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN WEDNESDAY,THE 28TH DAY OF NOVEMBER 2018 / 7TH AGRAHAYANA, 1940 RP.No. 597 of 2017 IN ITA. 131/2016 AGAINST THE JUDGMENT IN ITA 131/2016 of HIGH COURT OF KERALA DATED 24-11-2016 REVIEW PETITIONER: THE PRINCIPAL COMMISSIONER OF INCOME TAX 1ST FLOOR, AAYAKAR BHAVAN, NEW ANNEX BUILDING (NORTH BLOCK), NANANCHIRA, KOZHIKODE 673 001 BY ADVS. SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPT SRI.K.M.V.PANDALAI INCOME TAX DEPARTMENT RESPONDENTS: M/S.MATTANNUR RANGE AGRICULTURALIST AND TAPPING WORKER'S CO-OPERATIVE SOCITY MATTANNUR P.O, MATTANNUR, KANNUR DISTRICT 670 101REPRESENTED BY ITS SECRETARY, SHRI SUDHEER KUMAR A BY ADVS. SMT.DIVYA RAVINDRAN SRI.T.M.SREEDHARAN (SR.) SRI.V.P.NARAYANAN THIS REVIEW PETITION HAVING COME UP FOR ADMISSION ON 28.11.2018, ALONG WITH RP.562/2017, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: RP.No. 562 & 597 of 2017 3 O R D E R Devan Ramachandran, J. The learned standing counsel for the Income Tax Department, who are the petitioners in these two cases, seek review of the judgment, dated 24.11.2016, in ITA Nos. 131 and 132 of 2016, on the ground that while following the judgment of a Division Bench of this Court in Chirakkal Service Co-operative Bank Ltd. Vs. CIT [(2016) 384 ITR 590 (Ker.)], this Court had made a mistake because the issue involved in these cases are under the ambit of Section 80P2(iii) of the I.T. Act, whereas Chirakkal [supra] deals with the exemption to a Primary Agricultural Credit Co-operative Society under the provisions of Section 80P(A) of the I.T. Act. He says that this factual mistake unfortunately was omitted to be brought to the notice of this Court when the judgments were delivered. 2. Even though we hear the learned standing counsel for the Income Tax Department as afore, the fact remains that even though it appears that the reference to Chirakkal [supra] in these judgments was perhaps on account of a factual misunderstanding of the inputs RP.No. 562 & 597 of 2017 4 involved, the issues relating to the assesses in these cases has, however, been answered in their favour by a subsequent judgment of a Division Bench in ITA No. 273 of 2015. Therefore, except for the fact that a wrong reference to Chirakkal [supra] had been made in these judgments, eventually the position is still in favour of the assessee, and, therefore, we do not think that a review of our judgment is now warranted. 3. In the afore circumstances, noticing the judgment in ITA No. 273 of 2015, we close these review applications recording that reference to Chirakkal [supra] in these two cases was only on account of a wrong impression that the issues involved were under the ambit of Section 80P(A) of the Income Tax Act and clarifying further that the issues are under 80P(2) (iii) and covered by ITA 273 of 2015. Sd/- P.R.RAMACHANDRA MENON JUDGE Sd/- DEVAN RAMACHANDRAN JUDGE kmd "