THIROOR SERVICE CO-OPERATIVE BANK LTD NO. 4140 V. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/1105/2023

AI Insights

Thiroor Service Co-operative Bank Ltd., a Primary Agricultural Credit Society, challenged an assessment order that denied them a deduction under Section 80P of the Income Tax Act, claiming they did not meet the criteria set under the Kerala Co-operative Societies Act. The bank appealed the assessment order, citing a Supreme Court judgment that they believed supported their case. The High Court of Kerala, upon hearing the writ petition, decided not to interfere with the assessment order directly but directed the appellate authority to expedite the review of the bank's appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 770402 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 13-01-2023
• 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: 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. FRIDAY, THE 13TH DAY OF JANUARY 2023 / 23RD POUSHA, 1944 WP(C) NO. 1105 OF 2023 PETITIONER: THIROOR SERVICE CO-OPERATIVE BANK LTD NO. 4140 THIROOR, MULANKUNNATHUKAVU P.O., THRISSUR REPRESENTED BY ITS SECRETARY, PIN - 680581 BY ADV P.C.SASIDHARAN RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, ROOM NO. 356, CR BUILDING, IP ESTATE, DELHI, PIN - 110002 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX O/O THE PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, MANANCHIRA, KOZHIKODE, PIN - 673001 3 THE INCOME TAX OFFICER WARD NO 2(1), AAYANKAR BHAVAN, INCOME TAX OFFICE, SHAKTHAN THAMPURAN NAGAR, THRISSUR , PIN - 680001 BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P. (C) No. 1105 of 2023 ..2.. 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. 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 1st respondent, petitioner has sought to canvass 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 an W.P. (C) No. 1105 of 2023 ..3.. 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 assessment order. The writ petition is disposed of as above. Sd/- GOPINATH P. JUDGE RMV W.P. (C) No. 1105 of 2023 ..4.. APPENDIX OF WP(C) 1105/2023 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER DURING THE ASSESSMENT YEAR 2020-21 Exhibit P2 TRUE COPY OF THE DEMAND NOTICE DATED 26.09.2022 Exhibit P3 TRUE COPY OF THE APPEAL DATED 20.10.2022 Exhibit P4 TRUE COPY OF THE ACKNOWELDGMENT RECEIPT OF INCOME TAX FORMS SHOWING THE FILING OF APPEAL ON 20.10.2022 Exhibit P5 TRUE COPY OF THE STAY PETITION DATED 20.10.2022 Exhibit P6 TRUE COPY OF THE ORDER ISSUED BY THE THIRD RESPONDENT DATED 03.11.2022 Exhibit P7 TRUE COPY OF THE STAY PETITION DATED 08.11.2022 Exhibit P8 TRUE COPY OF THE JUDGMENT IN WPC NO. 26935/2021 DATED 30.11.2021 Exhibit P9 TRUE COPY OF THE JUDGMENT IN WA NO. 1536/2019 DATED 01.07.2019 OF THIS HONOURABLE COURT Exhibit P10 TRUE COPY OF THE JUDGMENT IN WPC NO. 14282/2021 DATED 19.07.2021 OF THIS HONOURABLE COURT Exhibit P11 TRUE COPY OF THE JUDGMENT DATED 27.10.2022 IN WPC NO. 34067/2022 OF THIS HONOURABLE COURT RESPONDENTS' EXHIBITS:NIL TRUE COPY P.A.TO JUDGE "