Wp(C) v. Wp(C)

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. TUESDAY, THE 6 DAY OF AUGUST 2024 / 15TH SRAVANA, 1946 WP(C) NO. 16537 OF 2024 PETITIONER/S: THE THURAVOOR CO-OPERATIVE BANK LTD, LTD NO. 935 KP 8-105, PUTHUKULANGARA, KUTHIATHODE,THURAVOOR P.O, ALAPPUZHA REPRESENTED BY ITSSECRETARY, PIN - 688532 BY ADV C.A.JOJO RESPONDENT/S: 1INCOME TAX OFFICER,OFFICE OF THE ITO WARD 2, ALAPPUZHA., PIN - 688001OFFICE OF THE ITO WARD 2, ALAPPUZHA., PIN - 688001 2INCOME TAX OFFICER - NFAC,NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI-, PIN - 110001 SRI. JOSE JOSEPH (SC- IT DEPT) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.08.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 16537 OF 2024 2 JUDGMENT The petitioner is a Primary Agricultural Co-operativeSociety. According to the petitioner, it is entitled to thebenefit of deduction under Section 80P of the Income Tax Act,1961 (hereinafter referred to as ‘the Act’). It is submitted thatthe Assessing Officer wrongly denied the benefit of deductionunder Section 80P of the Act, without even referring to thebinding judgment of the Supreme court in Mavilayi ServiceCo-operative Bank Ltd. and others v. Commissioner ofIncome Tax, Calicut and another ; [2021 (1) KLT485(SC)] . Learned counsel also places reliance of thejudgment of the Division Bench of this Court in PeroorkadaServiceCo-operativeBankLtdV.PrincipalCommissioner of Income Tax ; [2022] 442 ITR 141 insupport of his contention. Learned counsel also placedreliance on the judgment of the Division Bench of this Courtdated 28.06.2021 in W.A. No.753 of 2021, where the DivisionBench (to which I was also a party) held as follows:- WP(C) NO. 16537 OF 2024 3 ‘’3…...An erroneous assessment occasioned by ignoringa binding judgment of the Supreme Court cannot be trivialized asan order against which an appellate remedy lies that wouldprovide justice to an assessee.’’ 2. Heard the Senior Standing Counsel appearing forthe Income Tax Department also. 3. Though the Senior Standing Counsel appearing for the Income Tax Department would point out that the petitionerhas an efficacious remedy against Ext.P8 order of assessment,I am of the view that, since it is evident that the judgment ofthe Supreme Court in Mavilayi Service Co-operative BankLtd (supra) and the judgment of this Court in PeroorkadaService Co-operative Bank Ltd (supra) have not even beenconsidered by the Assessing Authority, this is also a casewhere the assessment is erroneous and in ignorance of thebinding precedents of the Supreme Court. Therefore, itcannot be said that availability of alternative remedy will barthe jurisdiction of this Court to interfere with such an order. Therefore, the writ petition is allowed. Ext.P8 order isquashed. The assessment of the petitioner for the assessmentyear 2015-16 will stand restored to the file of the AssessingOfficer, who shall complete the assessment afresh, also taking WP(C) NO. 16537 OF 2024 4 note of the judgment of the Supreme Court in MavilayiService Co-operative Bank Ltd (supra). The writ petition is ordered accordingly. Sd/- GOPINATH P. JUDGE ajt WP(C) NO. 16537 OF 2024 5 APPENDIX OF WP(C) 16537/2024 PETITIONER EXHIBITS Exhibit P1A TRUE COPY OF THE NOTICE U/S 148 FOR AY 2015-16 DATED 07.04.2022 ISSUED BY THE 1ST RESPONDENT2015-16 DATED 07.04.2022 ISSUED BY THE 1ST RESPONDENT Exhibit P2A TRUE COPY OF THE NOTICE U/S 142(1) DATED 11.03.2023 ISSUED BY THE 2ND RESPONDENT11.03.2023 ISSUED BY THE 2ND RESPONDENT Exhibit P3A TRUE COPY OF THE REPLY FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 05.04.2023PETITIONER BEFORE THE 2ND RESPONDENT DATED 05.04.2023 WP(C) NO. 16537 OF 2024 4 note of the judgment of the Supreme Court in MavilayiService Co-operative Bank Ltd (supra). The writ petition is ordered accordingly. Sd/- GOPINATH P. JUDGE ajt WP(C) NO. 16537 OF 2024 5 APPENDIX OF WP(C) 16537/2024 PETITIONER EXHIBITS Exhibit P1A TRUE COPY OF THE NOTICE U/S 148 FOR AY 2015-16 DATED 07.04.2022 ISSUED BY THE 1ST RESPONDENT2015-16 DATED 07.04.2022 ISSUED BY THE 1ST RESPONDENT Exhibit P2A TRUE COPY OF THE NOTICE U/S 142(1) DATED 11.03.2023 ISSUED BY THE 2ND RESPONDENT11.03.2023 ISSUED BY THE 2ND RESPONDENT Exhibit P3A TRUE COPY OF THE REPLY FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 05.04.2023PETITIONER BEFORE THE 2ND RESPONDENT DATED 05.04.2023 Exhibit P4A TRUE COPY OF THE SHOW NOTICE DATED 15.01.2024 ISSUED BY THE 2ND RESPONDENT15.01.2024 ISSUED BY THE 2ND RESPONDENT Exhibit P5A TRUE COPY OF THE DETAILED REPLY FILED BY THE PETITIONER DATED 17.01.2024THE PETITIONER DATED 17.01.2024 Exhibit P6A TRUE COPY OF THE NOTICE DATED 24.02.2024 ISSUED BY THE 2ND RESPONDENTISSUED BY THE 2ND RESPONDENT Exhibit P7A TRUE COPY OF THE DETAILED REPLY FILED BY THE PETITIONER DATED 01.03.2024THE PETITIONER DATED 01.03.2024 Exhibit P8A TRUE COPY OF THE ASSESSMENT ORDER U/S 147 FOR AY 2015-16 DATED 11.03.2024 ISSUED BY THE2ND RESPONDENTFOR AY 2015-16 DATED 11.03.2024 ISSUED BY THE2ND RESPONDENT Exhibit P9A TRUE COPY OF THE DEMAND NOTICE U/S 156 DATED 11.03.2024 ISSUED BY THE2ND RESPONDENTDATED 11.03.2024 ISSUED BY THE2ND RESPONDENT