VALLACHIRA SERVICE CO-OPERATIVE SOCIETY LTD.NO.527 V. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/37758/2022

AI Insights

Vallachira Service Co-operative Society Ltd., a Primary Agricultural Credit Society, challenged an assessment order that denied them a deduction under Section 80P of the Income Tax Act, citing non-compliance with the requirements under the Kerala Co-operative Societies Act. The society appealed the assessment order, which is currently pending before the Income Tax Appellate Tribunal. The High Court, referencing a Supreme Court judgment that may influence the outcome of the appeal, directed the Tribunal to expedite the consideration of the appeal and stay any coercive actions based on the assessment order until the appeal is decided.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 750462 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 25-11-2022
• 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; CHRISTOPHER ABRAHAM
• Assessee Lawyers: P C SASIDHARAN
• Keywords: Appeal; Assessment Order; Deduction; Income Tax; Primary Agricultural Credit Society; Time Bound
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 25TH DAY OF NOVEMBER 2022 / 4TH AGRAHAYANA, 1944 WP(C) NO. 37758 OF 2022 PETITIONER: VALLACHIRA SERVICE CO-OPERATIVE SOCIETY LTD.NO.527 VALLACHIRA.P.O, THRISSUR 680562 REPRESENTED BY ITS SECRETARY. , PIN - 680562 BY ADV P.C.SASIDHARAN RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, ROOM NO. 356, C.R. BUILDING, IP ESTATE, DELHI- 110002., PIN - 110002 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX O/O THE PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, MANANCHIRA, KOZHIKODE, KERALA - 673001. , PIN - 673001 3 THE INCOME TAX OFFICER WARD 1 & TPS, CITY PLAZA, INCOME TAX OFFICE, WEST NADA, GURUVAYOOR, KERALA - 680 101., PIN - 680101 BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA ADV. CHRISTOPHER ABRAHAM (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.11.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P. (C) No. 37758 of 2022 ..2.. JUDGMENT Dated this the 25th day of November, 2022 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. 37758 of 2022 ..3.. appeal as Ext.P3 and the same is pending consideration before the Income Tax Appellate Tribunal (1st respondent), I deem it fit that this writ petition be disposed of directing the Tribunal 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 appeal, 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. 37758 of 2022 ..4.. APPENDIX OF WP(C) 37758/2022 PETITIONER EXHIBITS Exhibit P1 EXHIBIT P1:- THE TRUE COPY OF THE ASSESSMENT ORDER DURING THE ASSESSMENT YEAR 2020-2021 DATED 22/09/2022 Exhibit P2 EXHIBIT P2:- THE TRUE COPY OF THE DEMAND NOTICE DATED 22/09/2022 Exhibit P3 EXHIBIT P3:- THE TRUE COPY OF THE APPEAL DATED 20/10/2022 Exhibit P4 EXHIHBIT P4:- THE TRUE COPY OF THE ACKNOWLEDGEMENT RECEIPT OF INCOME TAX FORMS SHOWING THE FILING OF THE APPEAL ON 20/10/2022 Exhibit P5 EXHIBIT P5:- THE TRUE COPY OF THE STAY PETITION DATED 19/10/2022 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT Exhibit P6 EXHIBIT P6:- THE TRUE COPY OF THE JUDGMENT IN W.A.NO.1536 OF 2019 DATED 1/7/2019 Exhibit P7 EXHIBIT P7:- THE TRUE COPY OF THE JUDGMENT IN W.P(C) NO.14282/2021 DATED 19/7/2021 Exhibit P8 EXHIBIT P8:- THE TRUE COPY OF THE JUDGMENT IN W.P(C) NO. 34067/2022 DATED 27/10/2022 RESPONDENTS' EXHIBITS:NIL TRUE COPY P.A.TO JUDGE "