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

WP(C)/16537/2024

AI Insights

The case involves the Thuravoor Co-operative Bank Ltd, which contested the denial of a deduction under Section 80P of the Income Tax Act, 1961 by the Assessing Officer. The petitioner argued that the Assessing Officer failed to consider relevant Supreme Court and High Court judgments that supported their entitlement to the deduction. The court found that the Assessing Officer's decision was erroneous as it ignored binding precedents, leading to the quashing of the assessment order and a directive for a re-assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 746923 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 06-08-2024
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Co-operative Bank Ltd. and others v. Commissioner of Income Tax, Calicut and another, Peroorkada Service Co-operative Bank Ltd V. Principal Commissioner of Income Tax
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: C A JOJO
• Keywords: Binding judgment; Deduction under section 80P; Erroneous Assessment; High Court; Primary Agricultural Co-operative Society; Supreme Court
• Section: 147; 148; 142(1); 80P; 156

Judgement Text

" IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. TUESDAY, THE 6TH DAY OF AUGUST 2024 / 15TH SRAVANA, 1946 WP(C) NO. 16537 OF 2024 PETITIONER/S: THE THURAVOOR CO-OPERATIVE BANK LTD, LTD NO. 935 KP 8-105, PUTHUKULANGARA, KUTHIATHODE,THURAVOOR P.O, ALAPPUZHA REPRESENTED BY ITS SECRETARY, PIN - 688532 BY ADV C.A.JOJO RESPONDENT/S: 1 INCOME TAX OFFICER, OFFICE OF THE ITO WARD 2, ALAPPUZHA., PIN - 688001 2 INCOME TAX OFFICER - NFAC, NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI-, PIN - 110001 SRI. JOSE JOSEPH (SC- IT DEPT) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.08.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 16537 OF 2024 2 JUDGMENT The petitioner is a Primary Agricultural Co-operative Society. According to the petitioner, it is entitled to the benefit of deduction under Section 80P of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). It is submitted that the Assessing Officer wrongly denied the benefit of deduction under Section 80P of the Act, without even referring to the binding judgment of the Supreme court in Mavilayi Service Co-operative Bank Ltd. and others v. Commissioner of Income Tax, Calicut and another ; [2021 (1) KLT 485(SC)] . Learned counsel also places reliance of the judgment of the Division Bench of this Court in Peroorkada Service Co-operative Bank Ltd V. Principal Commissioner of Income Tax ; [2022] 442 ITR 141 in support of his contention. Learned counsel also placed reliance on the judgment of the Division Bench of this Court dated 28.06.2021 in W.A. No.753 of 2021, where the Division Bench (to which I was also a party) held as follows:- WP(C) NO. 16537 OF 2024 3 ‘’3…...An erroneous assessment occasioned by ignoring a binding judgment of the Supreme Court cannot be trivialized as an order against which an appellate remedy lies that would provide justice to an assessee.’’ 2. Heard the Senior Standing Counsel appearing for the Income Tax Department also. 3. Though the Senior Standing Counsel appearing for the Income Tax Department would point out that the petitioner has an efficacious remedy against Ext.P8 order of assessment, I am of the view that, since it is evident that the judgment of the Supreme Court in Mavilayi Service Co-operative Bank Ltd (supra) and the judgment of this Court in Peroorkada Service Co-operative Bank Ltd (supra) have not even been considered by the Assessing Authority, this is also a case where the assessment is erroneous and in ignorance of the binding precedents of the Supreme Court. Therefore, it cannot be said that availability of alternative remedy will bar the jurisdiction of this Court to interfere with such an order. Therefore, the writ petition is allowed. Ext.P8 order is quashed. The assessment of the petitioner for the assessment year 2015-16 will stand restored to the file of the Assessing Officer, who shall complete the assessment afresh, also taking WP(C) NO. 16537 OF 2024 4 note of the judgment of the Supreme Court in Mavilayi Service Co-operative Bank Ltd (supra). The writ petition is ordered accordingly. Sd/- GOPINATH P. JUDGE ajt WP(C) NO. 16537 OF 2024 5 APPENDIX OF WP(C) 16537/2024 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE NOTICE U/S 148 FOR AY 2015-16 DATED 07.04.2022 ISSUED BY THE 1ST RESPONDENT Exhibit P2 A TRUE COPY OF THE NOTICE U/S 142(1) DATED 11.03.2023 ISSUED BY THE 2ND RESPONDENT Exhibit P3 A TRUE COPY OF THE REPLY FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 05.04.2023 Exhibit P4 A TRUE COPY OF THE SHOW NOTICE DATED 15.01.2024 ISSUED BY THE 2ND RESPONDENT Exhibit P5 A TRUE COPY OF THE DETAILED REPLY FILED BY THE PETITIONER DATED 17.01.2024 Exhibit P6 A TRUE COPY OF THE NOTICE DATED 24.02.2024 ISSUED BY THE 2ND RESPONDENT Exhibit P7 A TRUE COPY OF THE DETAILED REPLY FILED BY THE PETITIONER DATED 01.03.2024 Exhibit P8 A TRUE COPY OF THE ASSESSMENT ORDER U/S 147 FOR AY 2015-16 DATED 11.03.2024 ISSUED BY THE 2ND RESPONDENT Exhibit P9 A TRUE COPY OF THE DEMAND NOTICE U/S 156 DATED 11.03.2024 ISSUED BY THE2ND RESPONDENT "