Porkulam Service Co-operative Bank Limited, represented by Secretary V. Principal Chief Commissioner of Income Tax

WP(C)/3107/2024

AI Insights

The case involves the Porkulam Service Co-operative Bank Limited, which is a Primary Agricultural Credit Society engaged in banking and credit facilities exclusively for its members. The bank filed its tax return late by seven days for the assessment year 2019-20 and subsequently applied for condonation of the delay under Section 119(2)(b) of the Income Tax Act. The application was initially not considered properly as the order passed did not acknowledge the written submissions made by the petitioner. The High Court found this oversight and remitted the case back to the tax authorities for a fresh decision, allowing the petitioner to submit additional written arguments.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 677800 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 02-02-2024
• Assessment Year: misc
• Laws Referred To: Kerala Co-operative Societies Act, 1969, Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CYRIAC TOM
• Assessee Lawyers: ANIL NAIR; TELMA RAJU
• Keywords: Condoning delay; Delay in filing return; Income Tax; Primary Agricultural Credit Society; Banking and credit facilities
• Section: 119(2)(b)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH FRIDAY, THE 2ND DAY OF FEBRUARY 2024 / 13TH MAGHA, 1945 W.P.(C) NO.3107 OF 2024 PETITI ONER: PORKULAM SERVICE CO-OPERATIVE BANK LIMITED, REPRESENTED BY SECRETARY, VIII/109, VIA PAZHANJI TALAPPILY, THRISSUR, KERALA, INDIA, PIN-680 542. BY ADVS. ANIL D. NAIR TELMA RAJU RESPONDENT: PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, OFFICE OF THE DEPUTY COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, OLD RAILWAY STATION ROAD, ERNAKULAM DISTRICT, KOCHI, KERALA, PIN-682 018. ADV.CYRIAC TOM, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.02.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: -2- W.P.(C) NO.3107 OF 2024 JUDGMENT Dated this the 2nd day of February, 2024 The petitioner claims to be a Primary Agricultural Credit Society registered under the provisions of the Kerala Co-operative Societies Act, 1969. The petitioner also claims that the petitioner is engaged in the business of banking and providing credit facilities only to its members. 2. The petitioner filed return on 08.03.2019 to the last date for filing the return was 28.02.2019. Thus, there was a delay of 7 days in filing the return. The petitioner moved an application under Section 119(2)(b) of the Income Tax Act for condoning the delay in filing the return. On the said application, notice was issued to the petitioner on 27.10.2023 intimating the petitioner that the hearing on the application was fixed before the Joint Commissioner of Income Tax (Hqrs./Tech), Office of the Deputy Commissioner of Income Tax, Kerala on -3- W.P.(C) NO.3107 OF 2024 07.11.2023 at 11.30 a.m. The petitioner was directed to appear either in person or through an authorised representative. The petitioner was given a liberty to file written submission which was to be taken into consideration before deciding upon the application for condoning the delay of 7 days in filing the return. The petitioner filed written submission on 03.11.2023. The impugned order has been passed without taking note of the fact that the petitioner had submitted written submission. The order shows that neither the petitioner appeared in person nor submitted the written submission. Prima facie, the said finding is incorrect on the basis of the report. 3. In view thereof, the impugned order is set aside, the matter is remitted back to the Principal Chief Commissioner of Income Tax, Kerala to pass a fresh order. The petitioner is given liberty to file fresh written submission before the Principal Chief Commissioner of Income Tax, Kerala within one week from today. The petitioner may be served notice of hearing, and after -4- W.P.(C) NO.3107 OF 2024 considering the submission of the petitioner, fresh order shall be passed expeditiously. With the aforesaid direction, this writ petition stands finally disposed of. Sd/- DINESH KUMAR SINGH JUDGE bpr -5- W.P.(C) NO.3107 OF 2024 APPENDIX OF WP(C) 3107/2024 PETITIONER'S EXHIBITS Exhibit P1 TRUE COPY OF APPLICATION DATED 3.12.2022 SUBMITTED BY THE PETITIONER BEFORE THE RESPONDENT. Exhibit P2 TRUE COPY OF NOTICE DATED 27.10.2023 ISSUED FROM RESPONDENT TO THE PETITIONER. Exhibit P3 TRUE COPY OF LETTER DATED 3.11.2023 FROM THE PETITIONER TO THE RESPONDENT. Exhibit P4 TRUE COPY OF THE CIRCULAR NO.13/2023 DATED 26.7.2023. Exhibit P5 TRUE COPY OF THE RECEIPT OF HAVING DISPATCHED BY REGISTERED POST ALONG WITH THE TRACK RECORD. Exhibit P6 TRUE COPY OF THE ORDER DATED 6.12.2023 BY RESPONDENT. "