MALAPPATTAM SERVICE CO-OPERATIVE BANK LTD V. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER

WP(C)/35017/2022

AI Insights

The case involves the Malappattam Service Co-operative Bank Ltd, which challenged an assessment order issued by the Income Tax Department. The primary contention was that the Assessing Officer incorrectly applied a Full Bench judgment of the Kerala High Court, which had been reversed by the Supreme Court. The petitioner argued that this oversight led to an erroneous assessment for the year 2020-21. The court agreed with the petitioner, noting the failure to consider the Supreme Court's decision, and quashed the assessment order, remitting the case for re-evaluation in accordance with the law.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 750504 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 02-11-2022
• Assessment Year: misc
• Other Referred Cases: The Mavilayi Service Co-operative Bank Ltd. V. CIT [ITA No.97/2016], Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax [2021 (1) KLT 485]
• Laws Referred To: Kerala Co-operative Societies Act, 1969, Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH; CHRISTOPHER ABRAHAM
• Assessee Lawyers: S RAJ; C T ARJUN; S RAJ
• Keywords: Assessment Order; Co-operative Bank; Faceless assessment; Income Tax; Judgment reversal
• Section: 143(3); 142(1); 144B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. WEDNESDAY, THE 2ND DAY OF NOVEMBER 2022 / 11TH KARTHIKA, 1944 WP(C) NO. 35017 OF 2022 PETITIONER/S: MALAPPATTAM SERVICE CO-OPERATIVE BANK LTD MALAPPATTAM, KANNUR, REPRESENTED BY ITS SECRETARY P. GOPALAKRISHNAN, PIN - 670631 BY ADVS. S.ARUN RAJ C.T.SUJA ARJUN S.RAJ RESPONDENT/S: 1 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI, PIN - 110003 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, KOZHIKODE, PIN - 673001 BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA ADV. CHRISTOPHER ABRAHAM (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.11.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 35017 OF 2022 2 JUDGMENT Petitioner is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. Petitioner has approached this Court, challenging Ext.P4 order of assessment for the assessment year 2020-21, on one short ground. It is the case of the petitioner that the Assessing Officer, applied the judgment of a Full Bench of this Court in The Mavilayi Service Co-operative Bank Ltd. V. CIT [ITA No.97/2016 order dated 19.03.2019], without taking into consideration the judgment of the Hon’ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax [2021 (1) KLT 485] , which had reversed the judgment of the Full Bench of this Court. 2. Heard the learned counsel appearing for the respondent-Department also. 3. Having regard to the facts and circumstances of the case and considering the fact that Ext.P4 order of assessment did not consider the fact that the Full Bench judgment of this Court in Mavilayi (supra) has been reversed by the Hon’ble Supreme Court in the judgment reported in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax WP(C) NO. 35017 OF 2022 3 [2021 (1) KLT 485], I am of the opinion that Ext.P4 order of assessment is liable to be set aside, notwithstanding the availability of alternative remedy. 4. Accordingly, Ext.P4 is quashed. The matter is remitted to the National Faceless Assessment Centre, for fresh consideration, in accordance with law, taking note of the above observations. The writ petition is disposed of as above. sd/- GOPINATH P. JUDGE ajt WP(C) NO. 35017 OF 2022 4 APPENDIX OF WP(C) 35017/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE NOTICE DATED 07-12-2021 UNDER SECTION 142(1) OF THE ACT WAS ISSUED BY THE 1ST RESPONDENT FOR THE AY 2020-21 TO THE PETITIONER Exhibit P2 TRUE COPY OF REPLY DATED 22-02-2022 E-FILED BY THE PETITIONER IN RESPONSE TO TEH NOTICE U/S 142 (1) DATED 07-12-2021 ALONG WITH THE ACKNOWLEDGMENT Exhibit P3 TRUE COPY OF THE SHOW CAUSE NOTICE DATED 19- 03-2022 ISSUED BY THE 1ST RESPONDENT FOR THE AY 2020-21 Exhibit P4 TRUE COPY OF THE ASSESSMENT ORDER DATED 01- 08-2022 UNDER SECTION 143(3) R.W.S 144B OF THE ACT AND THE DEMAND NOTICE ISSUED BY THE 1ST RESPONDENT FOR THE AY 2020-21 "