Kerala State Co-op Agricultural and Rural Development Bank Ltd V. Union of India and Additional/Joint/Deputy/Assistant Commissioner of Income Tax/Income-Tax Officer National Faceless Assessment Centre, Delhi

WP(C)/31016/2022

AI Insights

The case involves the Kerala State Co-op Agricultural and Rural Development Bank Ltd, which challenged an assessment order issued by the Income Tax Department. The petitioner argued that the assessment did not consider a relevant Supreme Court judgment, which could potentially alter the tax liability significantly. The respondents contended that there were other grounds for assessment unrelated to the Supreme Court's decision, which required a separate appeal. The High Court found merit in the petitioner's argument regarding the oversight of the Supreme Court's judgment and ordered a fresh assessment, emphasizing the need for a comprehensive review to facilitate a complete appeal process if needed.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 811858 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 28-10-2022
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER P VANDANA
• Assessee Lawyers: JAZIL FERDINANTO
• Keywords: Income tax assessment; Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; Supreme Court judgment
• Section: 143(3); 270A; 156

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 28TH DAY OF OCTOBER 2022 / 6TH KARTHIKA, 1944 WP(C) NO. 31016 OF 2022 PETITIONER: 1 KERALA STATE CO-OP AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD POST BOX NO. 56, STATUE JN, THIRUVANANTHAPURAM REPRESENTED BY ITS MANAGING DIRECTOR MS. PARVATHY NAIR K L, PIN - 695001 BY ADVS. JAZIL DEV FERDINANTO JOSE JACOB RESPONDENTS: 1 UNION OF INDIA REPRESENTED BY SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NORTH BLOCK, NEW DELHI, PIN - 110001 2 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME-TAX OFFICER NATIONAL FACELESS ASSESSMENT CENTRE, DELHI, PIN - 110001 BY ADVS. ASG OF INDIA CHRISTOPHER ABRAHAM P.VANDANA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.31016 of 2022 2 JUDGMENT Dated this the 28th day of October, 2022 The petitioner has approached this Court being aggrieved by Ext.P3 order of assessment issued under the provisions of the Income Tax Act, 1961 in respect of assessment year 2020-2021. It is the case of the petitioner that since the Assessment Officer does not taken into consideration the judgment of the Hon'ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, the assessment order is bad in law and it is liable to be set aside. It is the case of the petitioner that if the law laid down by the Hon'ble Supreme Court in the aforesaid judgment is applied, the entire liability or a substantial portion thereof will be wiped out. 2. The learned Standing Counsel appearing for the respondent Department states that apart from the issues considered by the Hon'ble Supreme Court in WPC No.31016 of 2022 3 Mavilayi Service Co-operative Bank Ltd. (supra), the petitioner has been assessed to income tax on various other grounds and at least in respect of such grounds, the petitioner has to file a duly constituted appeal against the order of assessment. It is submitted that no grounds are made out for interference with Ext.P3 order of assessment in proceedings under Article 226 of Constitution of India. 3. Having heard the learned counsel for the petitioner and the learned Standing Counsel appearing for the respondent Department, I am of the view that since it is the admitted case that the judgment of the Hon'ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. (Supra), has not been considered while completing the assessment of the petitioner by Ext.P3 order, the said order can be set aside and the matter can be remanded to the 2nd respondent for completing the assessment afresh after affording to the petitioner an opportunity of WPC No.31016 of 2022 4 being heard. 4. Since it is pointed out by the learned counsel appearing for the respondent Department that Income Tax has been assessed on grounds under heads which have no relation to the law declared in Mavilayi Service Co-operative Bank Ltd. (Supra), it is made clear that the Assessing Officer need not reconsider any issue other than the issue arising out of the judgment of Hon'ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. (Supra) while passing fresh order of assessment. However, in order to avoid furhter confusion, it is directed that while reconsidering the issue as directed above, the Assessing Officer shall also pass fresh orders in respect of all other issues so that the petitioner may, if aggrieved by the order, file a statutory appeal against the order in its entirety. Therefore, Ext.P3 is quashed. The matter is remanded for fresh consideration of the 2nd respondent, who WPC No.31016 of 2022 5 shall decide the matter afresh after affording to the petitioner an opportunity of being heard and taking note of the directions contained in this judgment. The writ petition is disposed of as above. Sd/- GOPINATH P. JUDGE SKP/28-10 WPC No.31016 of 2022 6 APPENDIX OF WP(C) 31016/2022 PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE SHOW CAUSE NOTICE RECEIVED FOR PROPOSED DRAFT ASSESSMENT ORDER - NO. ITBA/AST/F/143(3)(SCN)/2021-22/1040760438(1) DATED 15.03.2022 EXHIBIT P2 TRUE COPY OF THE RESPONSE FILED IN ACKNOWLEDGEMENT NO. 387521141180322, DATED 18.03.2022, TO SHOW CAUSE NOTICE RECEIVED FOR PROPOSED DRAFT ASSESSMENT ORDER EXHIBIT P3 TRUE COPY OF THE ASSESSMENT ORDER NO. ITBA/AST/S/143(3)/2022-23/1045025634(1) DATED 27.08.2022 ISSUED BY RESPONDENT NO. 2 EXHIBIT P4 TRUE COPY OF DEMAND NOTICE NO. ITBA/AST/S/156/2022-23/1045029644(1) DATED 27.08.2022 ISSUED BY RESPONDENT NO. 2 EXHIBIT P5 TRUE COPY OF THE NOTICE RECEIVED FOR INITIATION OF PENALTY PROCEEDINGS UNDER SECTION 274 READ WITH SECTION 270A OF THE INCOME TAX ACT - NO. ITBA/PNL/S/270A/2022-23/1045029685(1) DATED 27.08.2022 ISSUED BY RESPONDENT NO. 2 EXHIBIT P6 TRUE COPY OF THE HIGH COURT ORDER GRANTING INTERIM RELIEF DATED 08.04.2022 EXHIBIT P7 TRUE COPY OF THE INFORMATION RECEIVED ON ACCOUNT OF RTI APPLICATIONS MADE TO RBI DATED 06.08.2019 EXHIBIT P8 TRUE COPY OF THE INFORMATION RECEIVED ON ACCOUNT OF RTI APPLICATIONS MADE TO REGISTRAR OF CO-OP. SOCIETIES DATED 12.04.2016 EXHIBIT P9 TRUE COPY OF THE INFORMATION RECEIVED ON ACCOUNT OF RTI APPLICATIONS MADE TO NBARD DATED 17.03.2016 EXHIBIT P10 TRUE COPY OF THE ORDER PASSED BY KERALA HIGH COURT IN KERALA STATE CO-OP. AGRICULTURAL & RURAL DEVELOPMENT BANK LTD VS. COMMISSIONER OF INCOME TAX (ITA NOS. 2,6,30 & 31/2017) DATED 24.09.2021 RESPONDENTS' EXHIBITS:NIL TRUE COPY P.A.TO JUDGE "