Dated: 06.09.2019 v. The Income Tax Officer,Ward-2(2), Erode,Income Office

IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated: 06.09.2019 CORAM THE HONOURNABLE MR.JUSTICE K.RAVICHANDRABAABUW.P.Nos.1608 and 769 of 2019and W.M.P.Nos.1785, 1786, 842 & 843 of 2019K.4442 Pethampalayam Primary agriculturalCooperative Credit society Ltd.,Rep. by its PresidentR.Shanmugasundaram,M/47S/o Rasa Gounder,Elayampalayam, Kovilpalayam Post,Kanjikoil,Perundurai - 638 116Erode District...Petitionerin W.P.No.1608 of 2019AA.226, Modakurichi Primary AgriculturalCooperative Credit Society,rep. by its President,P.V.Saravanan, M/52S/o venkatachalam,Perumapalayam, Modakurichi Post,Erode District...Petitionerin W.P.No.769 of 2019 Vs. The Income Tax Officer,Ward-2(2), Erode,Income Office,No.15, Gandhiji Road,Erode, Erode District. .. Respondent in W.P.No.1608 of 2019The Income Tax Officer,Ward-2(1), Erode,Income Office,No.15, Gandhiji Road,Erode, Erode District. .. Respondent in W.P.No.769 of 2019 Writ Petition filed under Article 226 of the Constitution ofIndia to issue a Writ of Certiorari to call for the entirerecords relating to the impugned order passed by the respondentin Order No.ITBA/AST/S/143(3)/2018-19/ 1014552487(1) dated24.12.2018 and Order No.ITBA/AST/S/143(3)/2018-19/1014648589(1)dated 28.12.2018 and quash the same. For Petitioner : Mrs.R.Hemalatha for Mr.C.Prakasam For Respondents: Mr.ANR.Jayaprathap, Standing Counsel COMMON ORDER In both these writ petitions, the order of assessment isput to challenge by the respective writ petitioners. 2. Heard both sides. 3. The petitioners are Primary Agricultural Co-operativeSocieties. In respect of the assessment year 2016-17, theassessing officer passed the orders of assessment therebyassessing the tax payable by the petitioners' society and makingconsequential demand notice as well. 4. The main contention of the writ petitioners is that theCo-operative Society is entitled to deduction under Section 80(P) of the Income Tax Act and therefore, the order of assessmentcannot be sustained. In support of their contentions, thepetitioners sought to rely upon the common judgment made by theDivision Bench of this Court in Tax Case Appeal Nos. 484 to 487& 490 of 2016 dated 02.08.2016, wherein the Division Benchobserved that the exemption spelt out in Section 80P(4) of theIncome Tax Act, 1961, is applicable to the Credit Society. 5. However, the learned Standing Counsel for therespondents submitted that the said order of the Division Benchis put to challenge before the Apex Court by way of SpecialLeave Petition and the same is still pending consideration inSLP(C) No.11745/2019. He also invited this Court's attention tothe order passed in W.P.Nos.2552 of 2019 etc. dated 27.06.2019arising out of similar issue, wherein this Court disposed ofthose writ petitions by issuing a direction to the Revenue tokeep the impugned proceedings therein in abeyance until disposalof the SLP filed by the Revenue before the Apex Court againstthe order of the Division Bench dated 02.08.2016, also withfurther directions. Therefore, it is submitted that the sameorder can be passed in these matters also. 6. Learned counsel for the respondents is not having anyobjection in passing the same order, since the similar writpetitions are disposed of on 27.06.2019 as stated supra. 7. The issue involved in this case is as to whether thepetitioners' Society is entitled to deduction under Section 80 (P) of the Income tax Act. There is no dispute to the fact thatthe Division Bench of this Court has answered on such questionin favour of the Society. However, it is stated that the saidorder of the Division Bench is put to challenge before the ApexCourt where the matter is pending in SLP(C) No.11745/2019. In abatch of cases arising out of a same issue, the learned Judge ofthis Court passed an order on 27.06.2018 as follows: 4. In the light of the aforesaid undisputed position,the following order is passed: 6. Learned counsel for the respondents is not having anyobjection in passing the same order, since the similar writpetitions are disposed of on 27.06.2019 as stated supra. 7. The issue involved in this case is as to whether thepetitioners' Society is entitled to deduction under Section 80 (P) of the Income tax Act. There is no dispute to the fact thatthe Division Bench of this Court has answered on such questionin favour of the Society. However, it is stated that the saidorder of the Division Bench is put to challenge before the ApexCourt where the matter is pending in SLP(C) No.11745/2019. In abatch of cases arising out of a same issue, the learned Judge ofthis Court passed an order on 27.06.2018 as follows: 4. In the light of the aforesaid undisputed position,the following order is passed: a) All the 33 impugned notices will be kept inabeyance and there will be no further proceedingspursuant to the same until disposal of the SpecialLeave Petitions said to have been filed by respondent/ Revenue in Hon'ble Supreme Court against theaforementioned orders of Hon'ble Division Bench ofthis Court particularly orders dated 02.08.2016 inTax Case Appeal Nos.484-487 and 490 of 2016. b) Subject to the outcome of the aforesaidSpecial Leave Petitions, i.e., if the Special LeavePetitions are in favour of the Revenue, the impugnedorders will stand revived and law will take itscourse. If this scenario unfolds, it is open to thewrit petitioner assessee to take all objections anddefences available to section 148 notice includingcalling for reasons and limitation. c) If the Special Leave Petitions end in favourof assessees and if the aforesaid Hon'ble DivisionBench orders are confirmed or if the Hon'ble SupremeCourt refuses to interfere with the orders of theHigh Court, all the 33 impugned notices will standset aside without further reference to this Court. d) Though obvious it is made clear that thisorder pertains to benefit under Section 80P of IT Actqua writ petitioners covered by Hon'ble DivisionBench orders against which Revenue submits that SLPshave been filed before Hon'ble Supreme Court andtherefore, this order will not preclude Revenue fromproceeding against writ petitioners in a manner knownto law with regard to other issues, if any. 5. With the aforesaid directions, all the 33writ petitions are disposed of and there will be noorder as to costs. Consequently, connectedmiscellaneous petitions are closed. 8. Considering the above stated facts and circumstances,these Writ Petitions are disposed of as follows: (a) The respondents shall keep the impugned assessmentorders in abeyance till the disposal of the above S.L.P. by theApex Court. (b) It is open to either party to work out theirremedy/action, subject to the outcome of the aforesaid S.L.P.No costs. Consequently, connected miscellaneous petitions areclosed.Sd/-Assistant Registrar (CS-IV)//True Copy//Sub Assistant Registrar vsi To1. The Income Tax Officer, Ward-2(2), Erode, Income Office, No.15, Gandhiji Road, Erode, Erode District.2. The Income Tax Officer, Ward-2(1), Erode, Income Office, No.15, Gandhiji Road, Erode, Erode District. +1cc to Mr.C.Prakasam, Advocate, S.R.No. 77476+1cc to Mr.A.P.Srinivas, Advocate, S.R.No. 77925 W.P.Nos.1608 and 769 of 2019 VG II(CO)GN(09/10/2019)