PRIMARY AGRICULTURAL CREDIT CO OPERATIVE V. INCOME TAX OFFICER

WP/12903/2023

AI Insights

The case involves the Primary Agricultural Credit Cooperative Society Limited, which sought judicial relief against various orders and notices issued by the Income Tax Department for the assessment year 2018-19. The petitioner argued that the delay in filing income tax returns was due to incorrect advice from their auditor and oversight, which were unintentional and beyond their control. The respondents, including the Income Tax Officer and the National Faceless Assessment Centre, contested the petition. The court's decision favored the petitioner, recognizing the genuine hardship and unintentional nature of the delay, leading to the quashing of the contested orders and notices.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 753563 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 04-09-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Karnataka Cooperative Society Act, 1959, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: Y V RAVIRAJ
• Assessee Lawyers: SHREEHARI
• Keywords: Assessment year 2018-19; Condonation of delay; Delay in filing; Income Tax; Writ of Certiorari
• Section: 147; 119(2)(b); 271B; 270A; 144B; 156

Judgement Text

" - 1 - NC: 2024:KHC:36336 WP No. 12903 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 12903 OF 2023 (T-IT) BETWEEN: PRIMARY AGRICULTURAL CREDIT CO OPERATIVE SOCIETY LIMITED, A COOPERATIVE SOCIETY REGISTERED UNDER THE KARNATAKA COOPERATIVE SOCIETY ACT, 1959 REGISTERED ADDRESS AT BELAL POST, BELTHANGADY TALUK, DAKSHINA KANNADA DIST. REP. BY ITS PRESIDENT SRI. H. PADMA GOWDA, S/O SRI. LATA KUKKA GOWDA, AGED ABOUT 67 YEARS. …PETITIONER (BY SRI. SHREEHARI, ADVOCATE) AND: 1. INCOME TAX OFFICER, WARD(1), PUTTUR, THE ASSESSING OFFICER UNDER THE INCOME TAX ACT, 1961 INCOME TAX OFFICE, RADHIKA COMPLEX, COURT ROAD, PUTTUR - 574 201 2. NATIONAL FACELESS ASSESSMENT CENTRE A CENTRE DESCRIBED UNDER SECTION 144B OF THE INCOME TAX ACT, 1961, Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:36336 WP No. 12903 of 2023 ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110 003, REP. BY PR. CHIEF COMMISSIONER OF INCOME TAX(NEAC). 3. PRINCIPAL COMMISSIONER OF INCOME TAX PCIT, PANAJI AAYKAR BHAVAN, PLOT NO.05, EDC COMPLEX, PATTO PLAZA, PANAJI, GOA-403 001, AN AUTHORITY UNDER THE INCOME TAX ACT, 1961 …RESPONDENTS (BY SRI. Y.V. RAVIRAJ, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE ORDER UNDER SECTION 119(2)(B) OF THE INCOME TAX ACT, 1961 DATED 27/02/2023 ISSUED BY THE R3 FOR THE ASSESSMENT YEAR 2018-19 WHICH BEARS IN DIN VIZ ITBA/COM/S/91//2022-23/1050172804(1) WHICH IS ENCLOSED AS ANNEXURE-K AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR - 3 - NC: 2024:KHC:36336 WP No. 12903 of 2023 ORAL ORDER In this petition the petitioners seek for the following reliefs : \"a. Issue a writ of certiorari or direction in the nature of writ of certiorari quashing the order under section 119(2)(b) of the Income Tax Act, 1961 dated 27/02/2023 issued by the Respondent No.3 for the Assessment Year 2018-19 which bears the DIN viz., ITBA/COM/M/17/2022- 23/1050172804 (1) which is enclosed as Annexure K; b. Issue a writ of certiorari or direction in the nature of writ of certiorari quashing the order of assessment under section 147 r.w.s. 144B of the Income Tax Act, 1961 dated 23/02/2023 issued by the Respondent No. 2 for the Assessment Year 2018-19 which bears the DIN viz., ITBA/AST/S/147/2022- 23/1050062605(1) which is enclosed as Annexure Q; c. Issue a writ of certiorari or direction in the nature of writ of certiorari quashing the notice of demand under section 156 of the Income Tax Act, 1961 dated 23/02/2023 issued by the Respondent No. 2 for the Assessment Year 2018-19 which bears the DIN viz., ITBA/AST/S/156/2022-23/1050062702(1) enclosed as Annexure Q1. d. Issue a writ of certiorari or direction in the nature of writ of certiorari quashing the notice proposing penalty under section 270A of the Income Tax Act, 1961 dated 09/03/2023 issued by the Respondent No. 2 for the Assessment Year 2018-19 which bears the DIN viz., ITBA/PNL/F/270A/2022- 23/1050544298(1) which is enclosed as Annexure R. e. Issue a writ of certiorari or direction in the nature of writ of certiorari quashing the notice proposing - 4 - NC: 2024:KHC:36336 WP No. 12903 of 2023 penalty under section 271B of the Income Tax Act, 1961 dated 09/03/2023 issued by the Respondent No. 2 for the Assessment Year 2018-19 which bears the DIN viz., ITBA/PNL/F/2718/2022- 23/1050544005(1) which is enclosed as Annexure R1. f. Issue a writ of mandamus or direction in the nature of writ of mandamus directing the respondent no.3 to condone the delay in filing of the return of income filed in Annexure H. g. And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity including awarding of cost of this petition. 2. A perusal of the material on record would indicate that in relation to assessment year 2018-19, the petitioner belatedly filed an application on 23.8.2022 requesting for condonation of delay in filing income tax returns for the assessment year 2018-19. In the application, petitioner specifically contended that due to incorrect advise given by his auditor and since the petitioner was a co-operative society, due to oversight and inadvertence, the petitioner did not file income tax returns within the prescribed period and before the due date. It is also submitted that for the subsequent years i.e., 2019-20, 2020-21, 2021-22 and - 5 - NC: 2024:KHC:36336 WP No. 12903 of 2023 2022-23, the petitioner filed income tax returns within the prescribed period and before the due date. It is therefore, submitted that the respondent committed an error in refusing to accept the explanation given by the petitioner which establishes genuine hardship on the part of the petitioner for circumstances beyond his control. It is also submitted that the consequent notices etc. also deserve to be quashed. 3. Per contra, learned counsel for the respondent submits that there is no merit in the petition and the same is liable to be dismissed. 4. As rightly contended by the learned counsel for the petitioner, a perusal of the application filed by the petitioner under Section 119(2)(b) of the Income Tax Act, 1961 would clearly indicate that the inability and omission on the part of the pt. to file income tax returns before the due date and within the prescribed period was due to genuine hardship and the same was unintentional and not deliberate and due to circumstances beyond the control of - 6 - NC: 2024:KHC:36336 WP No. 12903 of 2023 the petitioner-assessee. The fact that hardship would be caused to him if delay is not condoned stands substantiated by the material on record which indicate that the petitioner had, in fact, filed his returns for the subsequent four years i.e., 2019-20, 2020-21, 2021-22 and 2022-23 within the due date and before expiry of the prescribed period. Under these circumstances, I am of the considered opinion that the respondent committed error in rejecting the application filed by the petitioner under Section 119(2)(b) by passing the impugned order as well as consequential assessment order and by issuing the impugned notice etc., all of which deserve to be quashed. 5. In the result, the following order is passed : ORDER i) Petition is hereby allowed; ii) The impugned order at Annexure-K and impugned order at Annexure-Q and impugned notices Q1, R and R1 are hereby set aside; - 7 - NC: 2024:KHC:36336 WP No. 12903 of 2023 iii) The application filed by the petitioner under section 119 (2)(b) dated 23.8.2022 is hereby allowed and the delay on the part of the petitioner in submitting income tax returns is hereby condoned; iv) Respondent no.2 is directed to accept the income tax returns filed by the petitioner as if it was filed within the due date and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE rs List No.: 1 Sl No.: 51 "