M/S.NOORANAD NORTH SERVICE CO-OPERATIVE BANK LIMITED V. THE JOINT DIRECTOR OF INCOME TAX (I AND CI)

ITA/35/2020

AI Insights

The case involves two appeals by Mavelikkara Government Servants Co-operative Bank Limited and Noorand North Service Co-operative Bank Limited against the orders of the Income Tax Appellate Tribunal, Cochin Bench. The primary legal question was whether the Income Tax Officer had the jurisdiction to act under the second proviso of Section 133(6) of the Income Tax Act without the authorization of the Director or the Commissioner. The High Court of Kerala, referencing the Supreme Court's decision in Kathiroor Service Cooperative Bank Limited, dismissed the appeals, upholding the Tribunal's decision.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 691717 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 05-08-2020
• Assessment Year: misc
• Other Referred Cases: Kathiroor Service Cooperative Bank Limited V. Commissioner of Income Tax (Cib) and Others 2014 (14) SCC 352
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: V N SANKARJEE; VINCENT JOSEPH
• Keywords: Income Tax; Jurisdiction; Section 133(6); Second Proviso
• Section: 133(6)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE T.R.RAVI WEDNESDAY, THE 05TH DAY OF AUGUST 2020 / 14TH SRAVANA, 1942 ITA.No.38 OF 2020 AGAINST THE ORDER/JUDGMENT IN ITA 317/COCH/2019 DATED 18-06-2019 OF INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH APPELLANT/APPELLANT/ASSESSEE: MAVELIKKARA GOVERNMENT SERVANTS CO-OPERATIVE BANK LIMITED NO.A.792, MAVELIKKARA P.O., ALAPPUZHA, REPRESENTED BY ITS SECRETARY, AYAVANA P.O., MUVATTUPUZHA, ALAPPUZHA DISTRICT, PIN-690 101 BY ADVS. DR.V.N.SANKARJEE SRI.VINCENT JOSEPH RESPONDENT/RESPONDENT: THE JOINT DIRECTOR OF INCOME TAX (I AND CI) KOCHI KANDAMKULATHY TOWERS, M.G.ROAD, KOCHI-682 011, ERNAKULAM DISTRICT SRI.JOSE JOSEPH, SC IT THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 05.08.2020, ALONG WITH ITA.35/2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: I.T. Appeal Nos. 38 & 35 of 2020 2 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE T.R.RAVI WEDNESDAY, THE 05TH DAY OF AUGUST 2020 / 14TH SRAVANA, 1942 ITA.No.35 OF 2020 AGAINST THE ORDER/JUDGMENT IN ITA 462/COCH/2019 DATED 24-10-2019 OF INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH APPELLANT/APPELLANT/ASSESSEE: M/S.NOORANAD NORTH SERVICE CO-OPERATIVE BANK LIMITED NO.1781, IRANIKUZHY P.O. (PAN AABAN3615N), MAVELIKKARA TALUK, ALAPPUZHA DISTRICT, PIN - 690 558 REPRESENTED BY ITS SECRETARY. BY ADVS. DR.V.N.SANKARJEE SRI.VINCENT JOSEPH RESPONDENT/RESPONDENT: THE JOINT DIRECTOR OF INCOME TAX (I AND CI) KOCHI, KANDAMKULATHY TOWERS, M.G.ROAD, KOCHI - 682 011, ERNAKULAM DISTRICT. R1 BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 05.08.2020, ALONG WITH ITA.38/2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: I.T. Appeal Nos. 38 & 35 of 2020 3 JUDGMENT Vinod Chandran, J. The question as to whether the Income T ax Officer has jurisdiction to proceed under second proviso of Section 133(6) of the Income T ax Act without authorisation of the Director or the Commissioner as the case may be, was answered against the assessees and in favour of the Department by the Hon'ble Supreme Court in Kathiroor Service Cooperative Bank Limited V. Commissioner of Income Tax (Cib) and Others 2014 (14) SCC 352. Respectfully following the aforesaid decision, we dismiss the appeals. Sd/- K.VINOD CHANDRAN JUDGE Sd/- T .R.RAVI JUDGE Pn 05/08 I.T. Appeal Nos. 38 & 35 of 2020 4 APPENDIX OF ITA 38/2020 PETITIONER'S/S EXHIBITS: ANNEXURE-I TRUE COPY OF THE RESPONDENT'S ORDER F.NO.DIT(INTEL)/272A(2)(C)/2014-15 DATED 27.10.2014 OF THE ADDL. DIRECTOR OR INCOME TAX (INTELLIGENCE), KOCHI ANNEXURE-II TRUE COPY OF THE ORDER DATED 26.2.2019 IN ITA NO.723/ITG/EKM/CIT(A)-1/2014-15 OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1, KOCHI I.T. Appeal Nos. 38 & 35 of 2020 5 APPENDIX OF ITA 35/2020 PETITIONER'S/S EXHIBITS: ANNEXURE-I TRUE COPY OF THE NOTICE DATED 2.9.2013 ISSUED BY THE INCOME TAX OFFICER (INTELLIGENCE), ALAPPUZHA ANNEXURE-II TRUE COPY OF THE APPELLANT'S REPLY DATED 12.10.2013 SUBMITTED TO THE INCOME TAX OFFICER (INTELLIGENCE), ALAPPUZHA AGAINST ANNEXURE 1 NOTICE ANNEXURE III TRUE COPY OF THE RESPONDENT'S NOTICE DATED 1.6.2015 ISSUED TO THE APPELLANT. ANNEXURE IV TRUE COPY OF THE APPELLANT'S REPLY DATED 12.6.2015 SUBMITTED TO THE RESPONDENT AGAINST ANNEXURE III NOTICE ANNEXURE V TRUE COPY OF THE RESPONDENT'S ORDER DATED 22.12.2015 ISSUED TO THE APPELLANT ANNEXURE VI TRUE COPY OF THE ORDER DATED 14.5.2019 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-1, KOCHI IN ITA NO.99/ITG/EKM/CIT(A)-1/2015-16. "