THURAVOOR SERVICE CO-OPERATIVE BANK LTD.NO.E-69 V. THE INCOME TAX OFFICER

WP(C)/29980/2021

AI Insights

The case involves the Thuravoor Service Co-operative Bank Ltd., which is a Primary Agricultural Credit Society, challenging an assessment order issued by the Income Tax Officer. The assessment order rejected the bank's claim for deduction under Section 80P of the Income Tax Act, citing insufficient evidence to prove that the bank met the criteria of a Primary Agricultural Credit Society as required under the Co-operative Societies Act. The bank appealed against this order, and the appeal is currently pending before the Commissioner of Income Tax (Appeals). The bank sought relief from the High Court to expedite the appeal process and to prevent any coercive actions based on the assessment order during the appeal period.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 751580 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 27-01-2022
• 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, Income Tax Act 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: C A JOJO
• Keywords: Appeal Pending; Deduction rejection; Income tax assessment; Primary Agricultural Credit Society
• Section: 80P; 220(6)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS THURSDAY, THE 27TH DAY OF JANUARY 2022 / 7TH MAGHA, 1943 WP(C) NO. 29980 OF 2021 PETITIONER: THURAVOOR SERVICE CO-OPERATIVE BANK LTD.NO.E-69 THURAVOOR P.O., ANGAMALI, ERNAKULAM-683572, REPRESENTED BY ITS SECRETARY. BY ADV C.A.JOJO RESPONDENTS: 1 THE INCOME TAX OFFICER WARD-(3), ALUVA P.O., R.S.ROAD, KOCHI-683101. 2 COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, NEW DELHI-110001. 3 COMMISSIONER OF INCOME TAX (APPEALS)-2, OFFICE OF THE COMMISSIONER OF INCOME TAX, CENTRAL REVENUE TOWER, KOCHI-682018. 4 THE PRINCIPAL COMMISSIONER OF CENTRAL TAX C.R.BUILDING, I.S.PRESS ROAD, ERNAKULAM-682018. ADV.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.01.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 29980 OF 2021 2 BECHU KURIAN THOMAS, J ======================= W.P.(C) No. 29980 of 2021 ------------------------------- Dated this the 27 th day of January, 2022 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 27.12.2019. 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 Co-operative Societies Act. 2. While assailing the assessment order before the 2 nd 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] governs the factual situation arising in the case. 3. Since the petitioner has already preferred an appeal as Ext.P3 WP(C) NO. 29980 OF 2021 3 and the same is pending consideration before the 2 nd 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 2 nd 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 Ext.P1 assessment order. The writ petition is disposed of as above. Sd/- BECHU KURIAN THOMAS, JUDGE AMV/27/01/2022 WP(C) NO. 29980 OF 2021 4 APPENDIX OF WP(C) 29980/2021 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE ASSESSMENT ORDER AY 2017-18 DATED 27.12.2019 ISSUED BY THE FIRST RESPONDENT. Exhibit P2 A TRUE COPY OF THE DEMAND NOTICE FOR AN AMOUNT OF RS.1,41,48,781/-U/S 156 DATED 27.12.2019 ISSUED BY THE FIRST RESPONDENT. Exhibit P3 A TRUE COPY OF THE APPEAL FOR AY 2017-18 BEFORE THE 2ND RESPONDENT DATED 14.01.2020. Exhibit P4 A TRUE COPY OF THE STAY PETITION FOR AY 2017-18 BEFORE THE 1ST RESPONDENT U/S 220(6) OF THE I.T ACT 1961 DATED 14.01.2020. Exhibit P5 A TRUE COPY OF THE DEMAND NOTICE FOR PAYMENT OF 20% DATED 24.03.2019 BY THE 1ST RESPONDENT. Exhibit P6 A TRUE COPY OF THE DEMAND LETTER FOR PAYMENT OF 20% OF TAX FOR AN AMOUNT OF RS.7,50,000/- DATED 17.12.2021 ISSUED BY THE FIRST RESPONDENT. Exhibit P7 A TRUE COPY OF THE JUDGMENT IN WP(C)NO.21112 OF 2021 DATED 05.10.2021. RESPONDENTS EXHIBITS : NIL TRUE COPY "