THE VALAPPAD SERVICE CO-OPERATIVE BANK LTD NO. F. 207 V. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/25016/2021

AI Insights

The case involves The Valappad Service Co-operative Bank Ltd, which is a Primary Agricultural Credit Society, challenging an assessment order that denied them a deduction under Section 80P of the Income Tax Act. The assessment order, issued on 08.03.2021, was contested by the petitioner on the grounds that the assessing officer did not consider a relevant Supreme Court judgment in Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others, which was delivered prior to the assessment order. The petitioner had already filed an appeal against the assessment order, which was pending before the first respondent, the Commissioner of Income Tax (Appeals). The High Court, upon hearing the writ petition, directed the appellate authority to expedite the consideration of the appeal and ordered a stay on any coercive actions based on the assessment order until the appeal is resolved.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 765550 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 12-11-2021
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others [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: 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 BECHU KURIAN THOMAS FRIDAY, THE 12TH DAY OF NOVEMBER 2021 / 21ST KARTHIKA, 1943 WP(C) NO. 25016 OF 2021 PETITIONER: THE VALAPPAD SERVICE CO-OPERATIVE BANK LTD NO. F. 207 P.O, VALAPAD, THRISSUR - 680567, REPRESENTED BY ITS SECRETARY. BY ADV P.C.SASIDHARAN RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, DELHI - 110001. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX O/O. THE PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, MANANCHIRA, KOZHIKODE, KERALA - 673001. 3 THE INCOME TAX OFFICER, WARD 1 & TPS, CITY PLAZA, INCOME TAX OFFICE, WEST NADA, GURUVAYOOR, KERALA - 680101. ADV.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.11.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 25016 OF 2021 2 BECHU KURIAN THOMAS, J =========================== W.P.(C) No.25016 of 2021 --------------------------------------- Dated this the 12 th day of November, 2021 JUDGMENT 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 on 08.03.2021. 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 1 st respondent, petitioner has sought to canvass that the judgment of the Supreme Court in Mavilayi Service Co- operative Bank and Others v. Commissioner of Income Tax, Calicut and Others [2021 (1) KLT 485] was not considered by the assessing officer though the assessment WP(C) NO. 25016 OF 2021 3 order was rendered subsequent to the Supreme Court Judgment. 3. Since the petitioner has already preferred an appeal as Ext.P3 and the same is pending consideration before the 1 st respondent, I deem it fit that this writ 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 1 st respondent to consider and pass appropriate orders on Ext.P3, as expeditiously as possible. 5. Till the disposal of the appeal, no coercive steps shall be initiated pursuant to Ext.P1 assessment order. The writ petition is disposed of as above. Sd/- BECHU KURIAN THOMAS, JUDGE AMV/12/11//2021 WP(C) NO. 25016 OF 2021 4 APPENDIX OF WP(C) 25016/2021 PETITIONER’S EXHIBITS EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 08.03.2021. EXHIBIT P2 TRUE COPY OF DEMAND NOTICE DATED 08.03.2021. EXHIBIT P3 TRUE COPY OF THE APPEAL DATED 1.04.2021. EXHIBIT P4 TRUE COPY OF THE ACKNOWLEDGMENT OF RECEIPT OF FORM EVIDENCING OF FILING APPEAL DATED 01.04.2021. EXHIBIT P5 TRUE COPY OF THE STAY PETITION DATED 19.05.2021. EXHIBIT P6 TRUE COPY OF THE ORDER ISSUED BY THE 3RD RESPONDENT DATED 28.10.2021. EXHIBIT P7 TRUE COPY OF STAY PETITION FILED BY THE PETITIONER DATED 05.11.2021 BEFORE THE 2ND RESPONDENT. EXHIBIT P8 TRUE COPY OF THE JUDGMENT DATED 1.7.2019 IN W.A 1536 OF 2019. EXHIBIT P9 TRUE COPY OF THE JUDGMENT IN WP(C) NO. 22073/2021 DATED 13.10.2021. RESPONDENTS’ EXHIBITS: NIL //TRUE COPY// PA TO JUDGE "