SHREE MASNANGAI SOUHARDA V. THE PR. COMMISSIONER OF INCOME TAX

WP/104318/2023

AI Insights

The case involves Shree Masnangai Souharda Credit Sahakari Niyamit, a society registered under the Karnataka Souharda Sahakari Act, 1997, which faced a delay in filing its income tax return for the Assessment Year 2022-23. The society, engaged in accepting deposits and disbursing loans, claimed deductions under Section 80P of the Income Tax Act, 1961. Due to genuine reasons, the return was filed 11 days late. The Income Tax Department rejected the society's application for condonation of this delay, leading to the filing of the writ petition under Articles 226 and 227 of the Constitution of India. The court found that the delay was beyond the control of the petitioner and should have been condoned.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 672523 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 27-09-2024
• Assessment Year: misc
• Other Referred Cases: Kanyakaparameshwari Co-operative Society Limited vs. Chief Commissioner of Income-Tax
• Laws Referred To: Karnataka Souharda Sahakari Act, 1997, Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M THIRUMALESH; ROOPA ANAVEKAR
• Assessee Lawyers: SANGRAM KULKARNI; PRAMOD VAIDYA
• Keywords: Condonation of delay; Deduction under section 80P; Delay in filing; Income Tax Return
• Section: 80P; 119(2)(b)

Judgement Text

" - 1 - NC: 2024:KHC-D:14120 WP No. 104318 of 2023 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 27TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MS. JUSTICE JYOTI MULIMANI WRIT PETITION NO. 104318 OF 2023 (T-IT) BETWEEN: SHREE MASNANGAI SOUHARDA CREDIT SAHAKARI NIYAMIT, CHALAVENATTI, TQ: DIST: BELGAUM-591 143, BY ITS DIRECTOR, MR. PIRAJI BHOMANI PATIL, AGE: 64 YEARS, OCC: DIRECTOR, R/O: SHREE MASNANGAI SOUHARDA CREDIT SAHAKARI NIYAMIT, CHALAVENATTI, TQ: AND DIST: BELAGAVI-591 143. …PETITIONER (BY SRI. SANGRAM.S.KULKARNI AND SRI. PRAMOD VAIDYA., ADVOCATES) AND: 1. THE PR. COMMISSIONER OF INCOME TAX, C.R. BUILDING, NAVA NAGAR, HUBBALLI-580 025. 2. INCOME TAX OFFICER-WARD-1, BELAGAVI, FOROZ KHIMJIBAI COMPLEX, OPP. CIVIL HOSPITAL, BELAGAVI-590 001. …RESPONDENTS (BY SRI. M.THIRUMALESH AND MIS. ROOPA ANAVEKAR., ADVOCATES) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS. Digitally signed by THEJASKUMAR N Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC-D:14120 WP No. 104318 of 2023 THIS WRIT PETITION IS LISTED FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, AN ORDER IS MADE AS UNDER: ORAL ORDER Sri.Sangram S.Kulkarni., counsel for the petitioner and Ms.Roopa Anavekar., counsel for the respondent have appeared in person. Sri.M.Thirumalesh., counsel for the respondent has appeared through video conferencing. 2. The short facts are these: Shree Masnangal Souharda Credit Sahakari Niyamit is a Society registered under the Karnataka Souharda Sahakari Act, 1997 and is engaged in accepting deposits from its members and disbursing loans to them. The income of the society is entitled to deduction under Section 80 P of the Income Tax Act, 1961. The society has been filing its income tax returns regularly within the due date. Due to genuine reasons, the society filed its income tax returns for the Assessment Year 2022-23 on 18.11.2022, beyond the due date of 07.11.2022. However, the income of the Society was eligible for deduction under Section 80P of the Act and the same was claimed under - 3 - NC: 2024:KHC-D:14120 WP No. 104318 of 2023 the return of income filed delayed by eleven days on 18.11.2022. Hence, the petitioner applied under Section 119(2)(b) of the Act to condone the nominal delay of eleven days in filing the return of income for the Assessment Year 2022-23. The respondent vide order dated 22.02.2023 rejected the delay condonation application. Hence, the petitioner has filed the captioned Writ Petition under Articles 226 and 227 of the Constitution of India on several grounds as set out in the Memorandum of Writ Petition. 3. Counsel Sri.Sangram S.Kulkarni., in presenting his arguments submits that the delay in filing the income tax returns was beyond the assessee’s control. Counsel, therefore, submits that the Writ Petition may be allowed. Counsel placed reliance on the decision in KANYAKAPARAMESHWARI CO- OPERATIVE SOCIETY LIMITED VS. CHIEF COMMISSIONER OF INCOME-TAX – W.P.No.22423/2024 disposed of on 21.08.2024. By way of reply, counsel Sri.M.Thirumalesh., justified the action of the department. He submits that the Writ Petition is devoid of merits and the same may be dismissed. - 4 - NC: 2024:KHC-D:14120 WP No. 104318 of 2023 4. Heard the arguments and perused the Writ papers with utmost care. 5. The issue revolves around a narrow compass and relates to a delay. Suffice it to note that the petitioner filed the return of income and there was a nominal delay of eleven days and the delay was beyond the assessee’s control. In my view, the delay ought to have been condoned by the respondent but the same has not been done. Hence, the order dated 22.02.2023 is liable to be set aside, and so it is set aside. The nominal delay of 11 days is condoned. 6. The Writ of Certiorari is ordered. The order dated 22.02.2023 passed by the respondent in DIN & Order No: ITBA/COM/F/17/2022-23/1049992997(1) for the Assessment Year 2022-23 vide Annexure-A is quashed. 7. Resultantly, the Writ Petition is disposed of. Sd/- (JYOTI MULIMANI) JUDGE TKN LIST NO.: 1 SL NO.: 56 "