KERALA STATE CO-OPERATIVE EMPLOYEE PENSION BOARD, V. COMMISSIONER OF INCOME TAX (EXEMPTION),

WP(C)/9291/2024

AI Insights

The case involves the Kerala State Co-operative Employee Pension Board, which administers a pension scheme for cooperative employees in Kerala. The board's income, primarily from interest on pension contributions, is exempt from income tax under Section 10(23AAA) of the Income Tax Act, 1961. However, due to delays in filing tax returns for several assessment years, the board faced demands for tax payments, which led to appeals. The board sought judicial intervention to expedite the decision-making process regarding their tax exemption applications and the consequent refunds. The court's decision aims to resolve these administrative delays and ensure compliance with legal provisions regarding tax exemptions for the petitioner.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 756486 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 22-03-2024
• Assessment Year: misc
• Laws Referred To: Kerala State Co-operative Societies Act 1969, Income Tax Act 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: C A JOJO; SWATHY S
• Keywords: Delayed Return; Income tax exemption; Pension Scheme; Refund Demand
• Section: 119(2)(b); 10(23AAA); 80A

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH FRIDAY, THE 22ND DAY OF MARCH 2024 / 2ND CHAITHRA, 1946 WP(C) NO. 9291 OF 2024 PETITIONER/S: KERALA STATE CO-OPERATIVE EMPLOYEE PENSION BOARD, 7TH FLOOR, JAWAHAR SAHAKARANA BHAVAN, DPI JUNCTION, THIRUVANANTHAPURAM P.O, THIRUVANANTHAPURAM (D), KERALA, REPRESENTED BY ITS SECRETARY, PIN - 695014 BY ADVS.C.A.JOJO; SWATHY S. RESPONDENT/S: 1 COMMISSIONER OF INCOME TAX (EXEMPTION), OFFICE OF THE COMMISSIONER OF INCOME TAX, I S PRESS ROAD, KOCHI, PIN - 682018 2 THE CHAIRMAN, CENTRAL BOARD OF DIRECT TAXES (ITA-1DIVISION MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, ROOM NO.245 A, NORTH BLOCK, NEW DELHI, PIN - 110001 3 COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS ASSESSMENT CENTRE, NEW DELHI- NORTH BLOCK, NEW DELHI, PIN - 110001 4 THE DEPUTY COMMISSIONER (EXEMPTION), AAYAKAR BHAVAN, KAWADIYAR, THIRUVANANTHAPURAM, PIN - 695003 5 THE CHIEF COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, KAWADIYAR, THIRUVANANTHAPURAM, PIN – 695003 W.P.(C) No.9291/2024 -2- 6 THE REGISTRAR OF CO-OPERATIVE SOCIETIES, JAWAHAR SAHAKARANA BHAVAN, D.P.I JUNCTION, THYCAUD P.O, THIRUVANANTHAPURAM, PIN - 695014 OTHER PRESENT: SRI. JOSE JOSEPH-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.9291/2024 -3- J U D G M E N T The petitioner is the Kerala State Co-operative Employee Pension Board constituted by the Government of Kerala for administration of the Pension Scheme namely ‘Kerala Co- operative Societies Employees Financing Pension Scheme 1994’. This Pension Scheme was framed by the Government issuing a notification dated 14.03.1995 in the exercise of its powers conferred under Section 80A of the Kerala State Co- operative Societies Act 1969. 2. The petitioner’s income is exempted under Section 10(23AAA) of the Income Tax Act 1961. The first exemption was issued for three years and it has been renewed thereafter as per the norms. The only income of the petitioner is the interest from the deposits of pension contributions of the Co- operative Employees. W.P.(C) No.9291/2024 -4- 2.1 The assessment for the Assessment Year 2012-13 was completed by the 4th respondent with a demand disallowing the exemption as the petitioner did not file its return on time. The petitioner filed an appeal before the 3rd respondent which was allowed by the Commissioner (Appeals). According to the petitioner, the petitioner is entitled to a refund of Rs.12,15,204/- which has not yet been issued. In respect of the Assessment Year 2013-14, the petitioner filed a return claiming exemption under Section 10(23AAA) online. The petitioner filed an application for condoning the delay in filing the return before the Chief Commissioner of Income Tax Thiruvananthapuram. However, the said application has not yet been decided. As the Assessing Officer did not consider the delayed return as a valid return, the Assessing Authority completed the assessment and a demand for Rs.56,04,860/- has been issued for the Assessment W.P.(C) No.9291/2024 -5- Year 2013-14 against which the petitioner has filed an appeal before the 1st respondent. 2.2 In respect of the Assessment Years 2014-15 to 2018- 19 the petitioner did not file returns on time and therefore the petitioner’s claim for exemption under Section 10(23AAA) has been denied and demand has been issued. The petitioner has filed appeals in Exts.P7, P10 and P11. 3. Learned Counsel for the petitioner submits that the petitioner has been denied exemption from payment of the Income Tax on interest income on the technical ground of filing the return with delay to which he has filed an application before the Central Board of Direct Taxes (CBDT) under Section 119(2)(b). However, no decision has been taken and in the absence of a decision by the CBDT, the refund has not been processed. W.P.(C) No.9291/2024 -6- 4. Considering the said submissions the present writ petition is disposed of with a direction to the CBDT/2nd respondent to consider and pass orders on the Ext.P9 application expeditiously, preferably within a period of two months from today, in accordance with the law. The 3rd respondent is directed to consider and decide the appeals in Exts.P7, P10 and P11 expeditiously in accordance with the law, as early as possible. With the aforesaid directions, the present writ petition stands finally disposed of. Sd/- DINESH KUMAR SINGH JUDGE jjj W.P.(C) No.9291/2024 -7- APPENDIX OF WP(C) 9291/2024 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE RELEVANT PAGES OF GAZETTE NOTIFICATION NO.8787/LEG B2/93/LAW FOR THE COMMENCEMENT OF PENSION SCHEME AND BOARD, ISSUED BY THE GOVERNMENT OF KERALA DATED 03.06.1993 Exhibit P2 A TRUE COPY OF THE RELEVANT PAGES OF GAZETTE NOTIFICATION FOR THE COMMENCEMENT OF PENSION SCHEME ISSUED BY THE GOVERNMENT OF KERALA DATED 14.03.1995 Exhibit P3 A TRUE COPY OF THE EXEMPTION ORDER ISSUED BY THE 1ST RESPONDENT DATED 17.07.2015 FOR AY 2012- 13 TO 2014-15 Exhibit P4 A TRUE COPY OF THE EXEMPTION ORDER ISSUED BY THE 1ST RESPONDENT DATED 21.12.2015 FOR AY 2015- 16 TO 2017-18 Exhibit P5 A TRUE COPY OF THE EXEMPTION ORDER ISSUED BY THE 1ST RESPONDENT DATED 11.08.2021 FOR AY 2018- 19 TO 2020-21 Exhibit P6 A TRUE COPY OF THE EXEMPTION ORDER ISSUED BY THE 1ST RESPONDENT DATED 16.02.2023 FOR AY 2021- 22 TO 2023-24 Exhibit P7 A TRUE COPY OF THE APPEAL FOR AY 2013-14 FILED BEFORE THE 1ST RESPONDENT DATED 22.04.2022 Exhibit P8 A TRUE COPY OF THE LETTER ISSUED BY THE 2ND RESPONDENT DATED 17.11.2023 Exhibit P9 A TRUE COPY OF THE REPLY SUBMITTED BEFORE THE 2ND RESPONDENT DATED 07.12.2023 W.P.(C) No.9291/2024 -8- Exhibit P10 A TRUE COPY OF THE APPEAL FOR AY 2016-17 FILED BEFORE THE 3RD RESPONDENT DATED 22.04.2022 Exhibit P11 A TRUE COPY OF THE APPEAL FOR AY 2017-18 FILED BEFORE THE 3RD RESPONDENT DATED 06.07.2023 "