MEENANGADI SERVICE COOPERATIVE BANK LTD. V. 1. INCOME TAX OFFICER, AYAKAR BHAVAN, KALPETTA-673122

WP(C)/29124/2022

AI Insights

Meenangadi Service Cooperative Bank Ltd., a Primary Agricultural Credit Co-operative Society, faced penalties under Sections 271D and 271E of the Income Tax Act for the assessment year 2015-16. The bank appealed against these penalties in 2018, but the appeals were not disposed of for two years. Meanwhile, recovery proceedings were initiated based on the penalties. The bank filed a writ petition challenging the delay in the disposal of their appeals and the continuation of recovery proceedings. The court, considering the implementation of the Faceless Assessment Scheme which required the appeals to be handled by the Faceless Appellate Authority, directed the authority to expedite the decision on the appeals and halted the recovery proceedings until the appeals were resolved.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 769664 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 06-09-2022
• Assessment Year: misc
• Other Referred Cases: WP(C) 30703/2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: KEERTHIVAS GIRI
• Keywords: Appeal; Faceless Assessment Scheme; Penalty; Recovery proceedings
• Section: 271D; 271E; 269SS; 269T

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH TUESDAY, THE 6TH DAY OF SEPTEMBER 2022/ 15TH BHADRA, 1944 WP(C) NO. 29124 OF 2022 PETITIONER: MEENANGADI SERVICE COOPERATIVE BANK LTD. MEENANGADI P.O., MEENANGADI, WAYANAD DISTRICT-673591 REPRESENTED BY ITS SECRETARY. BY ADV KEERTHIVAS GIRI RESPONDENTS: 1 INCOME TAX OFFICER, AYAKAR BHAVAN, KALPETTA-673122. 2 JOINT COMMISSIONER OF INCOME TAX, OFFICE OF THE INCOME TAX DEPARTMENT, RANGE-II, KOZHIKODE-673001. 3 THE COMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN, KOZHIKODE DISTRICT-673001. 4 PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, KOZHIKODE - 673001 5 NATIONAL FACELESS APPEAL CENTRE, C BLOCK, SPM CIVIC CENTRE, NEW DELHI - 110001, REPRESENTED BY PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX (NFAC). SRI.JOSE JOSEPH, SC, INCOME TAX DEPARTMENT Sri.Christopher Abraham THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.09.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No.29124 of 2022 ..2.. JUDGMENT Dated this the 06th day of September, 2022 Petitioner is a Primary Agricultural Credit Co-operative Society. By Exts.P1 and P2, petitioner was imposed with penalty under Sections 271D and 271E respectively for the assessment year 2015-'16. Challenging the said penalty orders, appeals were preferred before the 3rd respondent in 2018. The grievance of the petitioner is that in spite of lapse of 2 years, the 3rd respondent has not disposed of the appeals and in the meantime, proceedings are initiated to recover the amounts imposed under Ext.P1 and Ext.P2. 2. Sri.Christopher Abraham, the learned Standing Counsel for the respondents submitted that after the coming into force of Faceless Assessment Scheme, the appeals are required to be heard by the Faceless Appellate Authority and the 3rd respondent will have to transfer the memorandum of appeals to the appellate assessment centre. W.P.(C).No.29124 of 2022 ..3.. 3. Having regard to the circumstances of the case and having regard to the submissions made by the learned counsel for the petitioner as well as the learned counsel for the respondents, I deem it fit to dispose of this writ petition directing the competent appellate authority to consider and pass appropriate orders on the appeals, filed as Exts.P3 and P4, as expeditiously as possible, at any rate, within a period of six months from the date of receipt of a copy of this judgment. In view of similar orders passed by this Court, copy of which is produced as Ext.P6, there will be a direction to the respondents not to pursue recovery proceedings against the petitioner, till such disposal. The writ petition is disposed of accordingly. Sd/- N. NAGARESH, JUDGE skj W.P.(C).No.29124 of 2022 ..4.. APPENDIX OF WP(C) 29124/2022 PETITIONER'S EXHIBITS Exhibit P1 TRUE COPY OF THE ORDER DATED 26.7.2018 ISSUED BY THE 2ND RESPONDENT UNDER SECTION 271D READ WITH SECTION 269SS OF THE INCOME TAX ACT AGAINST THE PETITIONER Exhibit P2 TRUE COPY OF THE ORDER DATED 26.7.2018 ISSUED BY THE 2ND RESPONDENT UNDER SECTION 271E READ WITH SECTION 269T OF THE INCOME TAX ACT AGAINST THE PETITIONER Exhibit P3 TRUE COPY OF THE APPEAL PREFERRED BY THE PETITIONER AGAINST EXHIBIT P1 DATED 29.8.2018 BEFORE THE 3RD RESPONDENT. Exhibit P4 TRUE COPY OF THE APPEAL PREFERRED DATED 29.8.2018 AGAINST EXT P2 ORDER BEFORE THE 3RD RESPONDENT. Exhibit P5 TRUE COPY OF THE ORDER DATED 28.07.2022 ISSUED BY THE 4TH RESPONDENT TO THE PETITIONER. Exhibit P6 TRUE COPY OF THE JUDGMENT DATED 03.01.2022 IN WP(C) 30703/2021 OF THIS COURT "