RAILWAYMENS HOUSE BUILDING CO-OPERATIVE SOCIETY LTD. NO.E-738 V. THE INCOME TAX OFFICER

WP(C)/4364/2021

AI Insights

The case involves the Railwaymens House Building Co-operative Society Ltd., which sought exemption from income tax under Section 80P of the Income Tax Act. The society failed to file their tax returns by the due date due to unaudited accounts, leading to a communication from the tax authorities adjusting the claimed exempt amount towards tax liability. The society's application for condonation of delay in filing the return was pending before the Principal Commissioner of Income Tax. The society requested the court to direct the Commissioner to decide on their application after a hearing.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 753154 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 19-02-2021
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: T R HARIKUMAR; ARJUN RAGHAVAN
• Keywords: Audit Delay; Condonation of delay; Filing Returns; Income tax exemption
• Section: 80P; 80AC; 119(b); 119(c)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.M.BADAR FRIDAY, THE 19TH DAY OF FEBRUARY 2021 / 30TH MAGHA,1942 WP(C).No.4364 OF 2021(U) PETITIONER/S: RAILWAYMENS HOUSE BUILDING CO-OPERATIVE SOCIETY LTD. NO.E-738, REPRESENTED BY ITS ASST. REGISTRAR/SECRETARY, RAILWAY BUILDING NO.77/A, ERNAKULAM JUNCTION, KOCHI,PIN-682 016 BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENT/S: 1 THE INCOME TAX OFFICER, NON CORPORATE WARD 1(4), C.R.BUILDING, I.S. PRESS ROAD, COCHIN,PIN-682 018 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, C.R.BUILDING, I.S. PRESS ROAD, COCHIN,PIN-682 018 SC- SRI.CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.02.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.4364 OF 2021 2 JUDGMENT Dated this the 19th day of February 2021 Heard both sides. 2. Learned Counsel for the petitioner submits that the petitioner co-operative society is entitled for exemption from payment of income tax on certain transaction as per the provisions of Section 80 P of the Income Tax Act. However, for availing such exemption, returns are to be filed on or before the due date as per the provisions of Section 80AC of the Income Tax Act. It is further argued by learned Counsel for the petitioner that, as the accounts were not audited before the due date, i.e., on 31.10.2019, the petitioner could not file the returns on or before the due date and that is how the respondents have sent the communication at Ext.P7 informing the petitioner that the amount which were claimed to be exempted shall be adjusted towards the tax liability. Learned Counsel for the petitioner further argued WP(C).No.4364 OF 2021 3 that the 2nd respondent, The Principal Commissioner of Income Tax, has power to condone the delay in filing the return under Section 119 (b) and (c) of the Income Tax Act, 1961, and the application of the petitioner for condonation of delay is pending before the said authority. The limited prayer made in this petition is to direct the 2nd respondent to consider and decide the said application after granting opportunity of hearing to the petitioner. 2. Learned Standing Counsel appearing for the respondents opposed the petition. 3. The application for condonation of delay filed by the petitioner under Section 119 (b) and (c) of the Income Tax Act, 1961, is still pending on the file of the 2nd respondent. In the fitness of things, it is necessary to direct the 2nd respondent to decide the said application by hearing the petitioner. Hence, this order. 4. The petition is allowed. The 2nd respondent is directed to consider and pass the order on application, Ext.P4, for condonation of delay by WP(C).No.4364 OF 2021 4 securing presence of the petitioner and by granting him opportunity of hearing, within a period of two months from the date of communication of this order. The parties to act on the authenticated copy of this order. Accordingly, the petition is allowed. Sd/- A.M.BADAR JUDGE uu 20.2.2021 WP(C).No.4364 OF 2021 5 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE REQUEST DATED 21.11.2019 SUBMITTED BEFORE THE 1ST RESPONDENT EXHIBIT P2 A TRUE COPY OF FORM NO.3CA DATED 12.11.2019 SUBMITTED BY THE PETITIONER EXHIBIT P3 A TRUE COPY OF FORM NO.3CA DATED 12.11.2019 SUBMITTED BY THE PETITIONER EXHIBIT P4 A TRUE COPY OF THE REQUEST,FILED BEFORE THE 2ND RESPONDENT FOR CONDONATION OF DELAY CAUSED IN FILING THE RETURNS ALONG WITH ACKNOWLEDGMENT DATED 23.12.20109 EXHIBIT P5 A TRUE COPY OF THE NOTICE DATED 13.03.2020 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER EXHIBIT P6 A TRUE COPY OF THE INCOME TAX RETURN ACKNOWLEDGMENT FOR THE ASSESSMENT YEAR 2019-2020 DATED 29.09.2020 EXHIBIT P7 A TRUE COPY OF THE COMMUNICATION DATED 08.10.2020 ISSUED BY THE CENTRALIZED PROCEEDING CENTER TO THE PETITIONER EXHIBIT P8 A TRUE COPY OF THE ONLINE RESPONSE FILED BY THE PETITIONER TO EXT-P7 DATED NIL EXHIBIT P9 A TRUE COPY OF THE DETAILED REPLY DATED 29.10.2020 FURNISHED BY THE PETITIONER TO EXT.P7 EXHIBIT P10 A TRUE COPY OF THE INTIMATION UNDER SECTION 143(1) OF THE INCOME TAX ACT DATED 04.01.2021 "