Thondernad Panchayath Agricultural Improvement Co-operative Society Limited No. W-312 V. Union of India and Commissioner of Income Tax (Appeals), National Faceless Appeal Centre and Income Tax Officer, Ward - 1, Kalpetta and Assessment Unit, National Faceless Assessment Centre and Principal Commissioner of Income Tax, Kozhikode and Assessing Officer, Income Tax Department, Ward - I, Kalpetta

WP(C)/27195/2024

AI Insights

The case involves the Thondernad Panchayath Agricultural Improvement Co-operative Society Limited, which contested an assessment order rejecting its claim for deduction under Section 80P of the Income Tax Act. The assessment order, issued on 13.03.2024, was challenged based on the Supreme Court's judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, which the petitioner argued rendered the assessment incorrect. The appeal against the assessment order was pending before the Commissioner of Income Tax (Appeals) at the time of the writ petition.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 800248 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 01-08-2024
• 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; CYRIAC TOM
• Assessee Lawyers: S M PRASANTH
• Keywords: Agricultural Credit Society; Appeal Pending; Deduction rejection; Income tax assessment
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. THURSDAY, THE 1ST DAY OF AUGUST 2024 / 10TH SRAVANA, 1946 WP(C) NO. 27195 OF 2024 PETITIONER: THONDERNAD PANCHAYATH AGRICULTURAL IMPROVEMENT CO-OPERATIVE SOCIETY LIMITED NO. W-312 AGED 38 YEARS THONDERNAD P.O., WAYANAD DISTRICT, REPRESENTED BY ITS SECRETARY JINCY JACOB, WIFE OF JIJO JOSE, RESIDING AT VANDANAKKARA, EDAVAKA P.O., PIN – 670 645, WAYANAD DISTRICT. BY ADV S.M.PRASANTH RESPONDENTS: 1 UNION OF INDIA REPRESENTED BY THE SECRETARY TO GOVERNMENT DEPARTMENT OF FINANCE, GOVERNMENT OF INDIA, NEW DELHI., PIN – 110 001. 2 THE COMMISSIONER OF INCOME TAX ( APPEALS), NATIONAL FACELESS APPEAL CENTRE (NFAC), INCOME TAX DEPARTMENT, 2ND FLOOR, E- RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI, PIN – 110 003. 3 THE INCOME TAX OFFICER, WARD - 1, KALPETTA SULTHAN BATHERY ROAD, KALPETTA, WAYANAD., PIN – 673 122. 4 THE ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, 2ND FLOOR, E - RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI – 110 003. W.P.(C) No.27195/2024 -:2:- 5 THE PRINCIPAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, KOZHIKODE., PIN – 673 001. 6 THE ASSESSING OFFICER, INCOME TAX DEPARTMENT, WARD - I, KALPETTA, WAYANAD DISTRICT., PIN – 673 121. BY ADVS. SRI. JOSE JOSEPH (SR.SC-IT DEPT) SRI. CYRIAC TOM (Jr.SC - IT DEPT) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.08.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.27195/2024 -:3:- 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 13.03.2024. 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 2nd 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. 3. Since the petitioner has already preferred an appeal as Ext.P3 and the same is pending consideration before the 2nd respondent, I deem it fit that this writ petition be disposed W.P.(C) No.27195/2024 -:4:- of directing the Appellate Authority to consider the appeal in a time bound manner. 4. Accordingly, there will be a direction to the 2nd 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 against the petitioner pursuant to Exts.P1 and P2. The writ petition is disposed of as above. Sd/- GOPINATH P . JUDGE ats W.P.(C) No.27195/2024 -:5:- APPENDIX OF WP(C) 27195/2024 PETITIONER’S EXHIBITS Exhibit P1 TRUE COPY OF ASSESSMENT ORDER NO. ITBA/AST/S/147/2023-24/1062524890(1) DATED 13.03.2024 ISSUED TO THE PETITIONER SOCIETY. Exhibit P2 TRUE COPY OF DEMAND NOTICE NO. ITBA/AST/S/156/2023-24/1062525042(1) DATED 13.03.2024 ISSUED BY THE THIRD RESPONDENT TO THE PETITIONER SOCIETY. Exhibit P3 TRUE COPY OF APPEAL DATED 15.06.2024 SUBMITTED BY THE PETITIONER SOCIETY BEFORE THE 2ND RESPONDENT. Exhibit P4 TRUE COPY OF STAY PETITION DATED 03.07.2024 SUBMITTED BY THE PETITIONER SOCIETY BEFORE THE 2ND RESPONDENT "