GANGULI TOWN SOUHARDA CO-OPERATIVE LTD V. COMMISSIONER OF INCOME TAX (APPEALS)

WP/8692/2021

AI Insights

The writ petitions filed by various cooperative societies challenged the assessment orders issued by the Income Tax Department, arguing that the refusal of deductions was contrary to the law as clarified by the Supreme Court in relevant cases. The petitioners sought to quash the assessment orders and requested the court to direct the First Appellate Authority to expedite the hearing of their appeals. The court, acknowledging the pending appeals and the commitment of the authorities to resolve them within four months, refrained from further adjudication and suggested that the petitioners could seek interim relief regarding the enforcement of the assessment orders.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 754453 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 08-09-2021
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Co-operative Bank Ltd. and Others v. Commissioner of Income Tax, Calicut and Another, Citizen Co-operative Society Ltd. v. Commissioner of Income Tax
• Laws Referred To: Articles 226 & 227 of the Constitution of India
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: JEEVAN NEERALGI
• Assessee Lawyers: MAHESH UPPIN
• Keywords: Assessment Order; Certiorari; Certiorari; E-assessment; Income Tax; National Faceless Appeal Centre; Writ petition
• Section: 143(3)

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF SEPTEMBER 2021 BEFORE THE HON'BLE MR.JUSTICE S. SUNIL DUTT YADAV WRIT PETITION No.8692/2021 (T-IT) C/W WRIT PETITION Nos.7894/2021, 8643/2021, 8652/2021, 8660/2021, 8670/2021, 8684/2021, 8710/2021, 8711/2021, 8712/2021, 8722/2021, 8723/2021, 13363/2021, 13866/2021, 15457/2021, 15472/2021, 15474/2021, 15490/2021 In W.P. No.8692/2021 Between: Ganguli Town Souharda Co-operative Ltd., No.5/215, Near Car Street, Gangolli, Byndoor Taluk, Udupi District - 576 216 Represented by its Secretary - Mr. Ganesh Nayak. … Petitioner (By Sri Mahesh R. Uppin, Advocate) And: 1. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Room No.356, C.R. Building, 2 I.P. Estate, New Delhi - 110 002. 2. Income Tax Officer, Ward-2, Aayakar Bhavan, Aadi-Udupi Malpe Road, Udupi - 576 103. 3. Assessment Officer, National e-Assessment Centre, Delhi - 110 001. ... Respondents (By Sri Jeevan J. Neeralgi, Advocate) This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the Assessment Order dated 19-2-2021 passed in PAN No.AAAAG2286M by the 3rd Respondent marked as Annexure-A by issuing a writ in the nature of Certiorari and etc. In W.P. No.7894/2021 Between: Mananje Vyavasaya Seva Sahakari Sangha Ltd., Mananje, Kamalashile, Kundapura Taluk, Udupi District - 576 229 Represented by its CEO - Mr. B. Shrikantha Kannantha. … Petitioner (By Sri Mahesh R. Uppin, Advocate) And: 1. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Room No.356, C.R. Building, I.P. Estate, New Delhi - 110 002. 3 2. Income Tax Officer, Ward-2, Aayakar Bhavan, Aadi-Udupi Malpe Road, Udupi - 576 103. 3. Assessing Officer, National e-Assessment Centre, Delhi - 110 002. ... Respondents (By Sri Jeevan J. Neeralgi, Advocate) This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the Assessment Order dated 13-2-2021 bearing DIN No.ITBA/AST/S/143(3)/2020- 2021/1030635754(1) passed by the 3rd Respondent marked as Annexure-B and Demand Notice dated 13-2-2021 bearing DIN and Notice No.ITBA/AST/S/156/2020-2021/1030635821(1) marked as Annexure C issued by the 3rd Respondent by issuing a writ in the nature of Certiorari and etc. In W.P. No.8643/2021 Between: Hemmady Fishermens Primary Co-operative Society Ltd., Hemmady, Kundapura Taluk, Udupi District - 576 249 Represented by its Secretary - Mr. Udaya Kumar Hattinangadi. … Petitioner (By Sri Mahesh R. Uppin, Advocate) And: 1. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Room No.356, C.R. Building, I.P. Estate, New Delhi - 110 002. 4 2. Income Tax Officer, Ward-2(5), C.R. Building, N.G. Road, Attavara, Mangaluru - 575 001. 3. Assessing Officer, National e-Assessment Centre, Delhi - 110 001. ... Respondents (By Sri Jeevan J. Neeralgi, Advocate) This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the Assessment Order dated 10-2-2021 passed in PAN No.AAAAH7295K by the 3rd Respondent marked as Annexure-A by issuing a writ in the nature of Certiorari and etc. In W.P. No.8652/2021 Between: Kodavoor Vyavasaya, Seva Sahakari Sangha Ltd., Kodavoor, Udupi Taluk & District - 576 106, Rep. by its C.E.O. - Mr. Sudhakar. … Petitioner (By Sri Mahesh R. Uppin, Advocate) And: 1. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Room No.356, C.R. Building, I.P. Estate, New Delhi - 110 002. 2. Income Tax Officer, Ward-1, Aayakar Bhavan, Aadi-Udupi Malpe Road, Udupi - 576 103. 5 3. Assessing Officer, National e-Assessment Centre, Delhi - 110 002. ... Respondents (By Sri Jeevan J. Neeralgi, Advocate) This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the Assessment Order dated 03.04.2021 passed in PAN No.AACAK6235E by R3 marked as Annexure-A by issuing a writ in the nature of certiorari and etc. In W.P. No.8660/2021 Between: S.K. and Udupi District Co-operative Fish Marketing Federation Ltd., Mulihithlu, Bolara, Mangalore - 575 001 Rep. by its Mg. Director - Mr. Harish Kumar. … Petitioner (By Sri Mahesh R. Uppin, Advocate) And: 1. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Room No.356, C.R. Building, I.P. Estate, New Delhi - 110 002. 2. Income Tax Officer, Ward-2(5), C.R. Building, N.G. Road, Attavara, Mangaluru - 575 001. 3. Assessing Officer, National e-Assessment Centre, Delhi - 110 001. ... Respondents (By Sri Jeevan J. Neeralgi, Advocate) 6 This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the Assessment Order dated 09.03.2021 passed in PAN No.AADAT6313M by R3 marked as Annexure-A by issuing a writ in the nature of certiorari and etc. In W.P. No.8670/2021 Between: Belapu Vyavasaya Seva Sahakari Sangha Ltd., Paniyoor, Belapu Post, Kaup Taluk, Udupi District - 574 140 Rep. by its C.E.O. - Mrs. Sulochana. … Petitioner (By Sri Mahesh R. Uppin, Advocate) And: 1. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Room No.356, C.R. Building, I.P. Estate, New Delhi - 110 002. 2. Income Tax Officer, Ward-1, Aayakar Bhavan, Aadi-Udupi Malpe Road, Udupi - 576 103. 3. Assessing Officer, National e-Assessment Centre, Delhi - 110 002. ... Respondents (By Sri Jeevan J. Neeralgi, Advocate) 7 This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the Assessment Order dated 09.04.2021 passed in PAN No.AACAB7010N by R3 marked as Annexure-A by issuing a writ in the nature of Certiorari and etc. In W.P. No.8684/2021 Between: Kollur Shree Mookambika Vyavasaya Seva Sahakari Sangha Ltd., Kollur, Kundapura Taluk, Udupi District - 576 220 Rep. by its C.E.O. - Mr. K. Ganesh Shanbhog. … Petitioner (By Sri Mahesh R. Uppin, Advocate) And: 1. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Room No.356, C.R. Building, I.P. Estate, New Delhi - 110 002. 2. Income Tax Officer, Ward-2, Aayakar Bhavan, Aadi-Udupi Malpe Road, Udupi - 576 103. 3. Assessing Officer, National e-Assessment Centre, Delhi - 110 002. ... Respondents (By Sri Jeevan J. Neeralgi, Advocate) 8 This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the Assessment Order dated 06.04.2021 passed in PAN No.AAAAK2702J by R3 marked as Annexure-A by issuing a writ in the nature of Certiorari and etc. In W.P. No.8710/2021 Between: Laxmi Venkatesh Credit Co-op. Society Ltd., 1st Floor, Sunanda Devadas Tower P.P.C. Road, Udupi Taluk & District - 576 101 Represented by its CEO - Mr. B. Muralidhar Rao. … Petitioner (By Sri Mahesh R. Uppin, Advocate) And: 1. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Room No.356, C.R. Building, I.P. Estate, New Delhi - 110 002. 2. Income Tax Officer, Ward-1, Aayakar Bhavan, Aadi-Udupi Malpe Road, Udupi - 576 103. 3. Assessing Officer, National e-Assessment Centre, Delhi - 110 002. ... Respondents (By Sri Jeevan J. Neeralgi, Advocate) 9 This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the Assessment Order dated 18.03.2021 passed in PAN No.AAAJL0987F by the R-3 marked as Annexure-A and etc. In W.P. No.8711/2021 Between: Ulloor Machattu Vyavasaya Seva Sahakari Sangha Ltd., Ulloor, Kundapura Taluk, Udupi District - 576 229 Represented by its CEO - Mr. B. Sudhakar Shetty. … Petitioner (By Sri Mahesh R. Uppin, Advocate) And: 1. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Room No.356, C.R. Building, I.P. Estate, New Delhi - 110 002. 2. Income Tax Officer, Ward-2, Aayakar Bhavan, Aadi-Udupi Malpe Road, Udupi - 576 103. 3. Assessing Officer, National e-Assessment Centre, Delhi - 110 002. ... Respondents (By Sri Jeevan J. Neeralgi, Advocate) 10 This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the Assessment Order dated 25.03.2021 passed in PAN No.AAAAU0586G by the R-3 marked as Annexure-A and etc. In W.P. No.8712/2021 Between: Swarna Souharda Credit Co-operative Ltd., Karkera Towers, Kannangar By-pass, Padubidri, Kaup Taluk, Udupi District - 574 111 Represented by its CEO - Mr. Bhaskar Amin. … Petitioner (By Sri Mahesh R. Uppin, Advocate) And: 1. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Room No.356, C.R. Building, I.P. Estate, New Delhi - 110 002. 2. Income Tax Officer, Ward-1, Aayakar Bhavan, Aadi-Udupi Malpe Road, Udupi - 576 103. 3. Assessing Officer, National e-Assessment Centre, Delhi - 110 002. ... Respondents (By Sri Jeevan J. Neeralgi, Advocate) 11 This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the Assessment Order dated 18.02.2021 passed in PAN No.AAKAS6131M by the R-3 marked as Annexure-A and etc. In W.P. No.8722/2021 Between: Byndoor Vyavasaya Seva Sahakari Sangha Ltd., Yedthare, Byndoor Taluk, Udupi District - 576 214 Represented by its CEO - Mr. Chandra Moger. … Petitioner (By Sri Mahesh R. Uppin, Advocate) And: 1. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Room No.356, C.R. Building, I.P. Estate, New Delhi - 110 002. 2. Income Tax Officer, Ward-2, Aayakar Bhavan, Aadi-Udupi Malpe Road, Udupi - 576 103. 3. Assessing Officer, National e-Assessment Centre, Delhi - 110 002. ... Respondents (By Sri Jeevan J. Neeralgi, Advocate) This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the Assessment Order dated 08.04.2021 passed in PAN No.AACAB5016C by the R-3 marked as Annexure-A and etc. 12 In W.P. No.8723/2021 Between: Panchagangolli Souharda Credit Co-operative Ltd., Maruthi Complex, Near Bus Stand, Gangolli, Kundapura Taluk - 576 216 Represented by its Secretary - Mr. Subramanya Achar. … Petitioner (By Sri Mahesh R. Uppin, Advocate) And: 1. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Room No.356, C.R. Building, I.P. Estate, New Delhi - 110 002. 2. Income Tax Officer, Ward-2(5), C.R. Building, N.G. Road, Attavara, Mangaluru - 575 001. 3. Assessing Officer, National e-Assessment Centre, Delhi - 110 001. ... Respondents (By Sri Jeevan J. Neeralgi, Advocate) This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the Assessment Order dated 09.02.2021 passed in PAN No.AABAP6098H by the R-3 marked as Annexure-A and etc. 13 In W.P. No.13363/2021 Between: Karavali Credit Co-operative Society Ltd., 2-14K-1 Zeeza Kripa Complex, Kallianpura, Santhekatte, Udupi - 576 105 Represented by its Secretary - Mr. Shridhar A Shetty. … Petitioner (By Sri Mahesh R. Uppin, Advocate) And: 1. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Room No.356, C.R. Building, I.P. Estate, New Delhi - 110 002. 2. Income Tax Officer, Ward-1, Aayakar Bhavan, Aadi-Udupi Malpe Road, Udupi - 576 103. 3. Assessing Officer, National e-Assessment Centre, Delhi - 110 002. ... Respondents (By Sri Jeevan J. Neeralgi, Advocate) This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the Assessment Order dated 21.04.2021 passed in PAN No.AACAK5792Q by the R-3 marked as Annexure-A by issuing a writ in the nature of Certiorari and etc. 14 In W.P. No.13866/2021 Between: Shri Mallikarjuna Credit Co-operative Society Ltd., Shiroor, Vandar, Udupi - 576 223 Represented by its Secretary - Mr. Narasimha Naik. … Petitioner (By Sri Mahesh R. Uppin, Advocate) And: 1. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Room No.356, C.R. Building, I.P. Estate, New Delhi - 110 002. 2. Income Tax Officer, Ward-1, Aayakar Bhavan, Aadi-Udupi Malpe Road, Udupi - 576 103. 3. Assessing Officer, National e-Assessment Centre, Delhi - 110 002. ... Respondents (By Sri Jeevan J. Neeralgi, Advocate) This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the Assessment Order dated 20.04.2021 passed in PAN No.AAIAS2725B by the R-3 marked as Annexure-A and etc. In W.P. No.15457/2021 Between: Udupi Taluk Protestant Christian Credit Co-op. Society Ltd., 15 Grace Plaza, No.76, Badagabettu, Bailur, Udupi - 576 101 Represented by its C.E.O. - Mr. Jeevan S. Andrews. … Petitioner (By Sri Mahesh R. Uppin, Advocate) And: 1. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Room No.356, C.R. Building, I.P. Estate, New Delhi - 110 002. 2. Income Tax Officer, Ward-1, Aayakar Bhavan, Aadi-Udupi Malpe Road, Udupi - 576 103. 3. Assessing Officer, National e-Assessment Centre, Delhi - 110 002. ... Respondents (By Sri Jeevan J. Neeralgi, Advocate) This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the Assessment Order dated 16.04.2021 passed in PAN No.AAAAU1479J by the R-3 marked as Annexure-A and etc. In W.P. No.15472/2021 Between: Belve Vyavasaya Seva Sahakari Sangha Ltd., (Wrongly shown as Belve Vyavasaya Seva Sahakari Bank Ltd.) Belve, Kundapura Taluk, Udupi District - 576 212 16 Represented by its C.E.O. - Mr. Keerthi Kumar Shetty. … Petitioner (By Sri Mahesh R. Uppin, Advocate) And: 1. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Room No.356, C.R. Building, I.P. Estate, New Delhi - 110 002. 2. Income Tax Officer, Ward-1, Aayakar Bhavan, Aadi-Udupi Malpe Road, Udupi - 576 103. 3. Assessing Officer, National e-Assessment Centre, Delhi - 110 002. ... Respondents (By Sri Jeevan J. Neeralgi, Advocate) This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the Assessment Order dated 27.04.2021 passed in PAN No.AAAAB1636N by the R-3 marked as Annexure-A and etc. In W.P. No.15474/2021 Between: Primary Agricultural Credit Co-operative Society Ltd., (Formerly: K.C.A. Bank Ltd.) Kalasa, Moodigere Taluk, Chikkamagaluru District - 577 101 Represented by its C.E.O: Sri P. Mahabaleshwara. … Petitioner (By Sri Mahesh R. Uppin, Advocate) 17 And: 1. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Room No.356, C.R. Building, I.P. Estate, New Delhi - 110 002. 2. Income Tax Officer, Ward-2, Aayakar Bhavan, Aadi-Udupi Malpe Road, Udupi - 576 103. 3. Assessing Officer, National e-Assessment Centre, Delhi - 110 002. ... Respondents (By Sri Jeevan J. Neeralgi, Advocate) This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the Assessment Order dated 16.04.2021 passed in PAN No.AAAAK3508N by the R-3 marked as Annexure-A and etc. In W.P. No.15490/2021 Between: Shankaranarayana Sahakari Vyasayika Sangha (N) Shankaranarayana, Kundapura Taluk, Udupi District - 576 227 Represented by its C.E.O. - Mr. Gopal Naik D. … Petitioner (By Sri Mahesh R. Uppin, Advocate) 18 And: 1. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Room No.356, C.R. Building, I.P. Estate, New Delhi - 110 002. 2. Income Tax Officer, Ward-2, Aayakar Bhavan, Aadi-Udupi Malpe Road, Udupi - 576 103. 3. Assessing Officer, National e-Assessment Centre, Delhi - 110 002. ... Respondents (By Sri Jeevan J. Neeralgi, Advocate) This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the Assessment Order dated 28.04.2021 passed in PAN No.AASAS2778N by the R-3 vide Annexure-A and etc. These Writ Petitions coming on for preliminary hearing in 'B' Group this day, the Court made the following: ORDER The petitioners in some of the writ petitions are the Co-operative Societies registered under the Karnataka Co-operative Societies Act and some of the petitioners are Town Souharda Co-operative Limited registered under the provisions of the Karnataka Souharda Act and have filed these petitions seeking to set aside the Assessment orders 19 passed by the Assessing Officer vide Annexure-'A', and in the alternative they have sought for issuance of writ in the nature of mandamus to direct the first respondent to dispose off the appeals marked as Annexure-'C'. 2. The principal contention of the petitioners is that refusal of deduction by the Assessing Officer in the impugned order is contrary to the law laid down by the Apex Court in the case of Mavilayi Service Co-operative Bank Ltd. and Others v. Commissioner of Income Tax, Calicut and Another reported in 2021 SCC Online SC 16. It is submitted that the judgment of the Apex Court in the case of Citizen Co-operative Society Ltd. reported in 397 ITR 1 was clarified by the Apex Court. It is submitted that in light of the above judgment, the impugned orders are liable to be set aside. 3. The learned counsel appearing for the Revenue submits that as the appeals have already been field and are pending, the question of this court entertaining the writ petitions are this stage does not arise. Upon instructions, it 20 is submitted that the appeals would be disposed off within a period of not later than four months from this day. 4. In light of the submission that the appeals itself would be disposed off expeditiously, it would not be appropriate to adjudicate on the contention of the petitioners as raised. 5. Insofar as the prayer of the petitioners that the impugned orders needs to be kept in abeyance and the consequent demand notices also need to be stayed, it would be appropriate to observe that such request can be made before the first respondent First Appellate Authority and the First Appellate Authority while considering grant of stay subject to deposit is to keep in mind the position of law including the judgment of the Apex Court which the petitioners assert enure to their benefit. 6. Needless to state that while considering the aspect of stay, merits of the matter are to be taken note of and to that end, the assertion of the petitioners that the judgment 21 of the Apex Court enure to their benefit is a matter to be taken note of appropriately by the First Appellate Authority. The contentions of the parties are kept open. 7. Accordingly, the petitions are disposed off. In light of the submission that the appeals would be disposed off within a period of not later than four months, the First Appellate Authority to ensure that appeals are disposed off within a period of four months. Sd/- JUDGE Np/- "