Dated This The 27[Th] Day Of September, 2023 v. Commissioner Of Income Tax [2021 (1) Klt 485

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 27 DAY OF SEPTEMBER 2023 / 5TH ASWINA, 1945WP(C) NO. 13498 OF 2022 PETITIONER: THE MALANAD SERVICE CO-OPERATIVE BANK LTD NO. K 340,MALANAD SCB BUILDING, VAGAMON P. O., ELAPPARA,IDUKKI- 685503,REPRESENTED BY ITS SECRETARY JAIN XAVIER. BY ADV. SRI. S. ARUN RAJ RESPONDENTS: THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON27.09.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 DINESH KUMAR SINGH, J. -------------------------- W.P.(C) No.13498 of 2022 ------------------------- Dated this the 27[th] day of September, 2023 JUDGMENT 1.The present writ petition has been filed by the petitionerimpugning Exhibit P-10 order regarding the assessment of theincome of the petitioner for the assessment year 2017-18. Theassessing authority has rejected the claim of the petitioner forexemption of his income under Section 80P of the Income TaxAct, 1961 on the ground that the petitioner is in fact carryingbanking business without having relevant clearances andpermissions from the Reserve Bank of India, and the petitioner isnot a Primary Agricultural Credit Society as claimed by thepetitioner. In fact the petitioner is in banking business. 2.Learned Counsel for the petitioner submits that the case ofthe petitioner is squarely covered by the Judgment of theSupreme Court in the case of Mavilayi Service Co-operative BankLtd. v. Commissioner of Income Tax [2021 (1) KLT 485]. 3.Mr. Jose Joseph, Learned Standing Counsel for the Revenue fairly submits that the assessing authority has not taken intoconsideration of the Supreme Court Judgment in MavilayiService Co-operative Bank Ltd. (supra). 4.Considering the aforesaid fact that the Supreme Court Judgment in Mavilayi Service Co-operative Bank Ltd. (supra) ison the issue, it will be appropriate to set aside the assessmentorder and remand the matter back to the assessing authority forfresh assessment after taking into consideration of the SupremeCourt Judgment in Mavilayi Service Co-operative Bank Ltd.(supra). Let the petitioner appear before the assessing authorityand the petitioner may be afforded an opportunity of hearingbefore finalising the fresh assessment. After finalising the freshassessment, if the petitioner is dissatisfied, he can avail thestatutory remedy of appeal before the concerned authority. With the above directions, this writ petition stands finallydisposed of. Sd/- DINESH KUMAR SINGH JUDGE APPENDIX OF WP(C) 13498/2022 PETITIONER’S EXHIBITS EXHIBIT P1TRUE COPY OF THE ASSESSMENT ORDER DATED 23-12-2019UNDER SECTION 143(3) OF THE ACT PASSED BY THEINCOME TAX OFFICER, WARD-3, KOTTAYAM FOR THE AY2017-18UNDER SECTION 143(3) OF THE ACT PASSED BY THEINCOME TAX OFFICER, WARD-3, KOTTAYAM FOR THE AY2017-18 EXHIBIT P2TRUE COPY OF THE APPEAL FILED BY THE PETITIONERBEFORE THE COMMISSIONER OF INCOME TAX (APPEALS),KOTTAYAM CHALLENGING EXHIBIT P-1 ORIGINALASSESSMENTBEFORE THE COMMISSIONER OF INCOME TAX (APPEALS),KOTTAYAM CHALLENGING EXHIBIT P-1 ORIGINALASSESSMENT EXHIBIT P3TRUE COPY OF THE NOTICE U/S 148 OF THE ACT DATED23-3-2021 ISSUED BY THE 1ST RESPONDENT23-3-2021 ISSUED BY THE 1ST RESPONDENT EXHIBIT P4TRUE COPY OF THE NOTICE U/S 142(1) OF THE ACTISSUED BY THE 2ND RESPONDENT FOR THE AY 2017-18ISSUED BY THE 2ND RESPONDENT FOR THE AY 2017-18 EXHIBIT P5TRUE COPY OF THE LETTER DATED 27.12.2021 FILED INRESPONSE TO THE NOTICE UNDER SECTION 142(1) OF THEACT FOR THE AY 2017-18RESPONSE TO THE NOTICE UNDER SECTION 142(1) OF THEACT FOR THE AY 2017-18 EXHIBIT P6TRUE COPY OF THE NOTICE DATED 22-3-2022 ISSUED BYTHE 2ND RESPONDENT TO THE PETITIONER FOR THE AY2017-18THE 2ND RESPONDENT TO THE PETITIONER FOR THE AY2017-18 EXHIBIT P3TRUE COPY OF THE NOTICE U/S 148 OF THE ACT DATED23-3-2021 ISSUED BY THE 1ST RESPONDENT23-3-2021 ISSUED BY THE 1ST RESPONDENT EXHIBIT P4TRUE COPY OF THE NOTICE U/S 142(1) OF THE ACTISSUED BY THE 2ND RESPONDENT FOR THE AY 2017-18ISSUED BY THE 2ND RESPONDENT FOR THE AY 2017-18 EXHIBIT P5TRUE COPY OF THE LETTER DATED 27.12.2021 FILED INRESPONSE TO THE NOTICE UNDER SECTION 142(1) OF THEACT FOR THE AY 2017-18RESPONSE TO THE NOTICE UNDER SECTION 142(1) OF THEACT FOR THE AY 2017-18 EXHIBIT P6TRUE COPY OF THE NOTICE DATED 22-3-2022 ISSUED BYTHE 2ND RESPONDENT TO THE PETITIONER FOR THE AY2017-18THE 2ND RESPONDENT TO THE PETITIONER FOR THE AY2017-18 EXHIBIT P7TRUE COPY OF THE REPLY DATED 23-3-2022 E-FILED BYTHE PETITIONER ALONG WITH THE ACKNOWLEDGMENTRECEIPTTHE PETITIONER ALONG WITH THE ACKNOWLEDGMENTRECEIPT EXHIBIT P8TRUE COPY OF THE SHOW CAUSE NOTICE DATED 25-3-2022WITH THE DRAFT ASSESSMENT ORDER ISSUED BY THE 2NDRESPONDENT TO THE PETITIONER FOR THE AY 2017-18WITH THE DRAFT ASSESSMENT ORDER ISSUED BY THE 2NDRESPONDENT TO THE PETITIONER FOR THE AY 2017-18 EXHIBIT P9TRUE COPY OF THE REPLY DATED 26-3-2022 FILED BYTHE PETITIONER IN RESPONSE TO THE SHOW CAUSENOTICE ISSUED BY THE 2ND RESPONDENT AND THE E-ACKNOWLEDGMENT RECEIPTTHE PETITIONER IN RESPONSE TO THE SHOW CAUSENOTICE ISSUED BY THE 2ND RESPONDENT AND THE E-ACKNOWLEDGMENT RECEIPT EXHIBIT P10TRUE COPY OF THE ASSESSMENT ORDER DATED 28-3-2022PASSED BY THE 1ST RESPONDENT UNDER SECTION 147R.W. 144B OF THE ACT FOR THE YEAR 2017-18PASSED BY THE 1ST RESPONDENT UNDER SECTION 147R.W. 144B OF THE ACT FOR THE YEAR 2017-18 EXHIBIT P11TRUE COPY OF THE JUDGMENT DATED 28-6-2021 PASSEDBY THE DIVISION BENCH OF THIS HONOURABLE COURT INW.A. NO.753 OF 2021BY THE DIVISION BENCH OF THIS HONOURABLE COURT INW.A. NO.753 OF 2021