M/S. PERALASSERI SERVICE CO-OPERATIVE BANK LTD. V. THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/

WP(C)/24877/2021

AI Insights

The case involves M/s. Peralasseri Service Co-operative Bank Ltd., which challenged the assessment order and penalty imposed by the Income Tax Department. The assessment order declined the petitioner's claim for deduction under Section 80P of the Income Tax Act, 1961, and added the declined sum to the returned income. The petitioner also contested the penalty under Section 270A of the Income Tax Act. Both the assessment and penalty were appealed before the Commissioner of Income Tax (Appeals), but the petitioner argued that a relevant Supreme Court judgment was not considered in the assessment. The High Court, finding that the appeals were pending, directed the appellate authority to expedite the decision-making process and stayed all coercive actions based on the contested orders.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 751686 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 11-11-2021
• Assessment Year: misc
• Other Referred Cases: Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others [2021 (1) KLT 485]
• Laws Referred To: Kerala Co-operative Societies Act, 1969, Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: T M SREEDHARAN; NISHA JOHN; V P NARAYANAN
• Keywords: Appeal; Assessment Order; Deduction; Delay condonation; Income Tax; Penalty; Service Co-operative Bank
• Section: 143(3); 80P; 270A

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS THURSDAY, THE 11TH DAY OF NOVEMBER 2021 / 20TH KARTHIKA, 1943 WP(C) NO. 24877 OF 2021 PETITIONER: M/S. PERALASSERI SERVICE CO-OPERATIVE BANK LTD. F-2766, MUNDALUR P.O., PERALASSERI, KANNUR 670 622. REPRESENTED BY ITS SECRETARY SHRI. KAMALAKSHAN K.P. BY ADVS. T.M.SREEDHARAN (SR.) NISHA JOHN V.P.NARAYANAN RESPONDENTS: 1 THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER, NATIONAL E- ASSESSMENT CENTRE, NEW DELHI 110 001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, NEW DELHI 110 001. ADV.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.11.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 24877 OF 2021 2 BECHU KURIAN THOMAS, J =========================== W.P.(C) No.24877 of 2021 --------------------------------- Dated this the 11 th day of November, 2021 JUDGMENT Petitioner is a Service Co-operative Bank registered under the Kerala Co-operative Societies Act, 1969 [for short, the Act]. Ext.P1 order of assessment was issued by the 1 st respondent against the petitioner on 13.04.2021. In the assessment order, petitioner's claim for deduction under Section 80P was declined and the sum so declined was added to the returned income. 2. Aggrieved by Ext.P1 assessment order, petitioner has preferred Ext.P2 appeal before the 2 nd respondent along with an application to condone the delay, a copy of which is produced as Ext.P3. Similarly the order of penalty imposed against the petitioner under Section 270A of the Income Tax Act, 1961, as per Ext.P4 has also been challenged before the 2 nd WP(C) NO. 24877 OF 2021 1 respondent through Ext.P5. 3. While assailing the assessment order before the 2 nd respondent, petitioner has sought to canvass that the judgment of the Supreme Court in Mavilayi Service Co-operative Bank and Others v. Commissioner of Income Tax, Calicut and Others [2021 (1) KLT 485] was not considered by the assessing officer, though the assessment order was rendered subsequent to the Supreme Court Judgment. 4. Since the petitioner has already preferred an appeal as Ext.P2 and Ext.P5 and those are pending consideration before the 2 nd respondent, I deem it fit that this writ petition be disposed of directing the Appellate Authority to consider the appeals in a time bound manner. 5. Accordingly, there will be a direction to the 2 nd respondent to consider and pass appropriate orders on Exts.P2 and P5 appeals, as expeditiously as possible, in a time bound manner. WP(C) NO. 24877 OF 2021 2 6. Till then all coercive proceedings pursuant to Exts.P1 and P4 shall be kept in abeyance. The writ petition is disposed of as above. Sd/- BECHU KURIAN THOMAS, JUDGE AMV/11/11//2021 WP(C) NO. 24877 OF 2021 3 APPENDIX OF WP(C) 24877/2021 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER PASSED BY THE IST RESPONDENT U/S 143(3) DATED 13.04.2021 WITH DEMAND NOTICE FOR THE ASSESSMENT YEAR 2018-19. Exhibit P2 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 20.10.2021 FILED BEFORE THE 2ND RESPONDENT FOR THE ASSESSMENT YEAR 2018-19. Exhibit P3 TRUE COPY OF THE PETITION FOR CONDONATION OF DELAY FILED BEFORE THE 2ND RESPONDENT DATED 20.10.2021. Exhibit P4 TRUE COPY OF THE PENALTY ORDER WITH DEMAND NOTICE DATED 15.09.2021 PASSED BY THE 2ND RESPONDENT. Exhibit P5 TRUE COPY OF THE APPEAL MEMORANDUM ALONG WITH GROUNDS OF APPEAL AGAINST PENALTY DATED 20.10.2021 FILED BEFORE THE 2ND RESPONDENT. RESPONDENTS EXHIBITS NIL TRUE COPY "