TRIVANDRUM DISTRICT MERCANTILE CO-OPERATIVE SOCIETY LTD., V. THE COMMISSIONER OF INCOME TAX (APPEALS),

WP(C)/16080/2024

AI Insights

The case involves the Trivandrum District Mercantile Co-operative Society Ltd., which is contesting an assessment order issued by the Income Tax Officer rejecting their claim for deduction under Section 80P of the Income Tax Act. The rejection was based on the grounds that the society did not meet the criteria of a Primary Agricultural Credit Society as required under the Kerala Co-operative Societies Act. The petitioner argued that a recent Supreme Court judgment in a similar case should render the assessment incorrect. The High Court decided to direct the appellate authority to expedite the review of the petitioner's appeal against the assessment order.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 672404 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 19-04-2024
• 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: CHRISTOPHER ABRAHAM; P R AJITHKUMAR
• Assessee Lawyers: BABU NAIR; SMITHA BABU
• 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 MRS. JUSTICE SHOBA ANNAMMA EAPEN FRIDAY, THE 19TH DAY OF APRIL 2024 / 30TH CHAITHRA, 1946 WP(C) NO. 16080 OF 2024 PETITIONER/S: TRIVANDRUM DISTRICT MERCANTILE CO-OPERATIVE SOCIETY LTD.,NO.1733, TC 24/1082(1), SHAMEES BUILDING, W & C HOSPITAL LANE, THYCAUD P.O., THIRUVANANTHAPURAM, REPRESENTED BY ITS SECRETARY, BINDU PAULOSE, AGED 47 YEARS, D/O.LATE A.V. PAULOSE, MADATHIVILAYIL HOUSE, ARANGALLU, KARAKULAM P.O., THIRUVANANTHAPURAM DISTRICT, PIN - 695014 BY ADVS. BABU S. NAIR SMITHA BABU RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS ASSESSMENT CENTER, ROOM NO.356, CR BUILDING, I.P. ESTATE, NEW DELHI, PIN - 110002 2 THE INCOME TAX OFFICER/ASSESSING OFFICER, NATIONAL FACELESS ASSESSMENT CENTER, ROOM NO.356, CR BUILDING, I.P. ESTATE, NEW DELHI, PIN - 110002 BY ADVS. CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT P.R.AJITH KUMAR THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.04.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 16080 OF 2024 2 JUDGMENT Petitioner is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. Ext.P2 order of assessment was issued against the petitioner on 15.03.2024. 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 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 appeal as Ext.P4 and the same is pending consideration before the 1st respondent, I deem it fit that this writ petition can be disposed of directing the Appellate Authority to consider the appeal in a time bound manner. WP(C) NO. 16080 OF 2024 3 4. Accordingly, there will be a direction to the 1st respondent to consider and pass appropriate orders on Ext.P4, as expeditiously as possible, at any rate, within a period of two months from the date of receipt of a certified copy of this judgment. 5. Till the disposal of the appeal, no coercive steps shall be initiated against the petitioner pursuant to Ext.P2 assessment order . The writ petition is disposed of as above. Sd/- SHOBA ANNAMMA EAPEN JUDGE ajt WP(C) NO. 16080 OF 2024 4 APPENDIX OF WP(C) 16080/2024 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE ACKNOWLEDGMENT OF RETURN OF INCOME FILED BY THE PETITIONER FOR THE ASSESSMENT YEAR 2018-19, DATED, 17-9-2022 Exhibit P2 A TRUE COPY OF THE ASSESSMENT ORDER ISSUED BY THE 2ND RESPONDENT DATED, 15-3-2024 Exhibit P3 A TRUE COPY OF THE DEMAND NOTICE ISSUED TO THE PETITIONER BY THE 2ND RESPONDENT DATED, 15-3-2024 Exhibit P4 A TRUE COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE FIRST RESPONDENT DATED, 2-4-2024 Exhibit P5 A TRUE COPY OF THE APPLICATION FOR STAY FILED BY THE PETITIONER TO STAY THE DEMAND PURSUANT TO THE ASSESSMENT ORDER, DATED, 1-4-2024 "