UDAYANAPURAM SERVICE CO-OPERATIVE BANK LTD V. INCOME TAX OFFICER

WP(C)/7120/2023

AI Insights

The case involves Udayanapuram Service Co-operative Bank Ltd, which challenged the assessment order and demand notice issued by the Income Tax Officer for the assessment year 2020-21. The primary legal issue was whether the petitioner was entitled to the benefits under Section 80P of the Income Tax Act, which pertains to deductions for certain income of co-operative societies. The petitioner argued that the assessing officer did not consider this issue, citing a violation of a Supreme Court judgment in Mavilayi Service Co-operative Bank Ltd. and others v. Commissioner of Income Tax. The court found that the assessing officer had not adequately addressed whether the petitioner qualified as a Primary Agricultural Credit Society or a Primary Co-operative Agricultural and Rural Development Bank, despite the issuance of several notices to the petitioner.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 677796 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 06-03-2023
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Co-operative Bank Ltd. and others v. Commissioner of Income Tax and another; 431 ITR 1
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: C A JOJO
• Keywords: Assessment Order; Co-operative Bank; Demand notice; Income Tax; Section 80P
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI MONDAY, THE 6TH DAY OF MARCH 2023 / 15TH PHALGUNA, 1944 WP(C) NO. 7120 OF 2023 PETITIONER: 1 UDAYANAPURAM SERVICE CO-OPERATIVE BANK LTD NO.1321 UDAYANAPURAM P.O, VAIKOM, KOTTAYAM, PIN - 686143 REPRESENTED BY ITS SECRETARY BY ADV C.A.JOJO RESPONDENTS: 1 INCOME TAX OFFICER WARD-2, SHASTRI ROAD KOTTAYAM P.O, PIN - 686001 2 INCOME TAX OFFICER NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI-110001. SRI.JOSE JOSEPH, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.03.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.7120 of 2023 2 T.R. RAVI, J. ------------------------------------ W.P.(C.) No.7120 of 2023 ------------------------------------ Dated this the 06th day of March, 2023 JUDGMENT The challenge in this writ petition is against the assessment order produced as Ext.P1 and the demand notice issued pursuant to the assessment. The assessment relates to the assessment year 2020- 21. The only question that is involved is whether the petitioner’s Society is entitled to the benefit of Section 80P. 2. The petitioner has approached this Court contending that the said question has not been gone into by the assessing officer and that, it is a clear violation of the judgment of the Hon'ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. and others v. Commissioner of Income Tax and another; 431 ITR 1. The petitioner has along with I.A. No.1 of 2023 produced the return filed by the WPC No.7120 of 2023 3 petitioner wherein, a specific claim has been made for deduction under Section 80P of the Income Tax Act. The consideration of the assessment order is available in paragraph 3 of the order which says that it is evident from the name of the assessee that the assessee is a Co-operative Bank. Other than that, the question whether the petitioner is a Primary Agricultural Credit Society or a Primary Co-operative Agricultural and Rural Development Bank has not been specifically gone into. The justification stated is that even though several notices were issued to the petitioner, they did not respond. This Court has in the judgment in W.A. No.753/2021 considered an assessment order in which the question had not been specifically answered and set aside the assessment order and directed reconsideration. 3. After hearing the counsel on either side, I am of the view that the petitioner ought to be given another chance to put forward their case before the WPC No.7120 of 2023 4 assessing officer. In the result, the writ petition is allowed. Exts.P1 and P2 are set aside. The 2nd respondent is directed to pass fresh assessment order with notice to the petitioner in accordance with law. The petitioner shall place before the authority the necessary documents which are required to show that they are entitled to come within the frame work of Section 80P. Sd/- T.R.RAVI JUDGE SKP/06-03 WPC No.7120 of 2023 5 APPENDIX OF WP(C) 7120/2023 PETITIONER’S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR AY 2020-21 ISSUED BY THE 2ND RESPONDENT DATED 21.09.2022 EXHIBIT P2 A TRUE COPY OF THE DEMAND NOTICE U/S 156 FOR AY 2020-21 DATED 21.09.2022. EXHIBIT P3 A TRUE COPY OF THE JUDGMENT OF THIS HON'BLE COURT IN WP ( C ) NO.34530 OF 2022 DATED 27.02.2023 EXHIBIT P4 A TRUE COPY OF THE INCOME TAX RETURN FILED BY THE PETITIONER DATED 13.02.2021 WITH ACKNOWLEDGMENT RESPONDENTS' EXHIBITS:NIL TRUE COPY P.A. TO JUDGE "