The assessee is a primary Agriculturist credit society. While completing the assessment the Assessing Officer ignored the direction issued by the Supreme Court in The Mavilayi Co-operative Bank v CIT (2021) 318 CTR 609/ 197 DTR 361(SC) and denied the claim under section 80P of the Act. The assesse filed a writ before High Court. The Single judge held that the assessee has remedy of a statutory appeal hence the writ was dismissed. On appeal the division bench held that it cannot be the stand of the Department that an assessee who is aggrieved by an assessment order passed ignoring the binding judgement of the Supreme Court, has nevertheless an alternative remedy by way of appeal before first appellate Authority under the statute. The judgement of single judge was set aside and the Assessing Officer was directed to redo the assessment. (AY. 2018-19)
Poonjar Service Co-Operative Bank Ltd. v. ITO (2021) 206 DTR 425 / 323 CTR 104 (Ker.)(HC) Editorial : Order of single judge in Poonjar Service Co-Operative Bank Ltd v. ITO (2021) 206 DTR 428 / 323 CTR 107 (Ker) (HC), set aside.
S. 143(3) : Assessment-Co-operative societies-Denial of exemption-Binding precedent-Failure to follow the judgement of Supreme Court-Alternative remedy-Judgement of single judge was set aside-The Assessing Officer was directed to redo the assessment after hearing the parties. [S. 80P(2)(a)(i), Art. 226]