M/S PURAPPUZHA SERVICE CO-OPERATIVE BANK LTD V. ADDITIONAL/JOINT/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER

WP(C)/33815/2022

AI Insights

The case involves M/s Purappuzha Service Co-operative Bank Ltd, which filed a writ petition challenging the assessment order issued by the Income Tax Department. The petitioner argued that the Assessing Officer failed to consider a relevant Division Bench judgment (Ext.P6) that was brought to his notice, which favored the petitioner's position. The Income Tax Department acknowledged the oversight but contended that it did not warrant interference with the assessment order under Article 226 of the Constitution. The High Court, while acknowledging the procedural oversight, decided to quash the assessment order and remit the matter for a fresh assessment, emphasizing the need to consider the Division Bench judgment.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 750514 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 27-10-2022
• Assessment Year: misc
• Other Referred Cases: ITA No. 323 of 2019 and connected cases
• Laws Referred To: Article 226 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: S RAJ; C T ARJUN; S RAJ
• Keywords: Assessment Order; Income Tax; Division Bench judgment; Remitted for reassessment
• Section: 143(3); 274; 270A; 144B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. THURSDAY, THE 27TH DAY OF OCTOBER 2022 / 5TH KARTHIKA, 1944 WP(C) NO. 33815 OF 2022 PETITIONER: M/S PURAPPUZHA SERVICE CO-OPERATIVE BANK LTD, PURAPPUZHA SCB BUILDING, PURAPUZHA P.O., THODUPUZHA - 685583, REPRESENTED BY ITS SECRETARY BINDUMOL M.J., BY ADVS. S.ARUN RAJ C.T.SUJA ARJUN S.RAJ RESPONDENTS: 1 ADDITIONAL/JOINT/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI – 110003 2 INCOME TAX OFFICER WARD - 1, THODUPUZHA, MAHIMA TOWER, TEMPLE BYE PASS ROAD, THODUPUZHA, IDUKKI – 685 584 3 THE PRINCIPAL COMMISSIONER OF INCOME TAX CENTRAL REVENUE BUILDING, IS PRESS ROAD, ERNAKULAM, KOCHI, PIN – 682018 BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 33815 OF 2022 2 JUDGMENT This writ petition has been filed on the short ground that Ext.P6 judgment of Division Bench of this Court which squarely covers the issue in favour of the petitioner was not taken note of by the Assessing Officer while issuing Ext.P5 order of assessment, despite the fact that the judgment was brought to his notice. 2. Learned Standing Counsel for the Income Tax Department states that while it may be true that the Assessing Officer did not consider Ext.P6 Judgment of Division Bench of this Court, that, by itself may not be a ground for interfere with an order of assessment under Article 226 of the Constitution of India. 3. Having heard the learned counsel for the petitioner and the learned counsel appearing for the Income Tax Department, I am of the view that the fact that a Division Bench judgment of this Court was not noticed by the Assessing Officer, should normally be a matter that should be taken up in appeal and there is no good reason as to why an assessment order should be interfered with under Article 226 of the Constitution of India, on that ground. WP(C) NO. 33815 OF 2022 3 However, to avoid inconvenience and hardship to the petitioner Ext.P5 order of assessment is quashed and the matter is remitted to the 1st respondent, who shall complete the assessment afresh after taking note of Ext.P6 judgment of the Division Bench of this Court. I make it clear that, I have not expressed any opinion on the merits of the matter and it is open to the Assessing Authority to decide the matter in accordance with law also taking into consideration Ext.P6 judgment of a Division Bench of this Court. Sd/- GOPINATH P. JUDGE nak WP(C) NO. 33815 OF 2022 4 APPENDIX OF WP(C) 33815/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE SHOW CAUSE NOTICE DATED 24-03-2022 ISSUED BY THE 1ST RESPONDENT FOR THE AY 2020-21 Exhibit P2 TRUE COPY OF THE REPLY DATED 26-03-2022 E-FILED BY THE PETITIONER Exhibit P3 TRUE COPY OF THE SHOW CAUSE NOTICE DATED 13-09-2022 ISSUED BY THE 1ST RESPONDENT FOR THE AY 2020-21 Exhibit P4 TRUE COPY OF THE REPLY DATED 14-09-2022 E-FILED BY THE PETITIONER IN RESPONSE TO THE SHOW CAUSE NOTICE DATED 13-09-2022 Exhibit P5 TRUE COPY OF THE ASSESSMENT ORDER DATED 20-09-2022 PASSED U/S 143(3) R.W.S. 144B OF THE ACT BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2020-21 Exhibit P6 TRUE COPY OF THE JUDGMENT DATED 1-11-2021 PASSED BY THE DIVISION BENCH OF THIS HONOURABLE COURT IN ITA NO. 323 OF 2019 AND CONNECTED CASES Exhibit P7 TRUE COPY OF THE PENALTY NOTICE DATED 20- 09-2022 UNDER SECTION 274 R.W.S. 270 A OF THE ACT FOR THE AY 2020-21 ISSUED BY THE 1ST RESPONDENT "