The Enadimangalam Service Co-operative Bank Ltd. No. 2151, V. ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER,

WP(C)/42670/2022

AI Insights

The case involves the Enadimangalam Service Co-operative Bank Ltd., which challenged an assessment order under the Income Tax Act, 1961, for the assessment year 2020-21. The petitioner argued that the order denied them benefits under Section 80P of the Income Tax Act, 1961, despite precedents from the Supreme Court favoring their position. The respondents contended that the benefits of Section 80P were extended to the petitioner, but certain interest incomes were not exempted. The court found that the issues raised could be addressed through the appellate process rather than extraordinary writ jurisdiction under Article 226 of the Constitution.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 762183 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 03-01-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Article 226 of the Constitution of India
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM; JOSE JOSEPH
• Assessee Lawyers: O D SIVADASS
• Keywords: Assessment Order; Extraordinary Circumstances; Income Tax; Section 80P; Writ petition
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. TUESDAY, THE 3RD DAY OF JANUARY 2023 / 13TH POUSHA, 1944 WP(C) NO. 42670 OF 2022 PETITIONER: 1 THE ENADIMANGALAM SERVICE CO-OPERATIVE BANK LTD. NO. 2151, AGED 45 YEARS VI/3, ELAMANNOOR P.O. PATHANAMTHITTA, , PIN - 691524 REPRESENTED BY ITS SECRETARY BY ADV O.D.SIVADAS RESPONDENTS: 1 ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, THE ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, NEW DELHI, PIN - 110001 2 THE INCOME TAX OFFICER WARD (4), KOLLAM, PIN - 691001 BY ADV.CHRISTOPHER ABRAHAM, STANDING COUNSEL JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.42670 of 2022 2 JUDGMENT Dated this the 03rd day of January, 2023 The petitioner has approached this Court challenging Ext.P4 order of assessment under the Income Tax Act, 1961 for the assessment year 2020- 21. It is the case of the petitioner that through the impugned order of assessment, the benefits available to the petitioner under Section 80P of the Income Tax Act, 1961 has been practically denied. It is submitted that the issue stands covered in favour of the petitioner by judgments of the Hon'ble Supreme Court and therefore, notwithstanding the availability of alternative remedy, the petitioner is entitled to challenge the assessment order in a writ petition under Article 226 of the Constitution of India. 2. Learned counsel appearing for the respondent Department submits that there are no extra ordinary circumstances which would require this Court to examine the questions raised in a writ petition under WPC No.42670 of 2022 3 Article 226 of the Constitution of India. It is submitted that a reading of the assessment order itself shows that the benefit of Section 80P of the Income Tax Act has been extended to the petitioner. The denial is in respect of certain interest income of the petitioner which, according to the Department, does not qualified for exemption under the provisions of Section 80P. It is submitted that this is a matter that cannot be examined in a proceeding under Article 226 of the Constitution of India and the petitioner may be required to avail the remedy of appeal before the First Appellate Authority. He also states that if the appeal is filed within a period of two weeks from today along with an application for condonation of delay, the delay would be condoned and the appeal would be considered on merits. Having heard the learned counsel for the petitioner and the learned counsel appearing for the respondent Department, this writ petition will stand WPC No.42670 of 2022 4 disposed of directing that if the petitioner files a statutory appeal against Ext.P4 order of assessment within a period of two weeks from today along with application for condonation of delay, the First Appellate Authority shall condone the delay in filing the appeal and shall consider the appeal on merits. Taking into consideration the fact that several other cases involving the question as to whether the benefit of Section 80P of the Income Tax Act has to be extended to similar assessees, this Court has directed stay of demand pursuant to assessment order, it is directed that any demand pursuant to Ext.P4 order of assessment shall be kept in abeyance till a decision is taken on the stay application to be filed by the petitioner along with the appeal. Sd/- GOPINATH P. JUDGE SKP/03-01 WPC No.42670 of 2022 5 APPENDIX OF WP(C) 42670/2022 PETITIONER’S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE REPLY DATED 24.11.2022 SUBMITTED BY THE PETITIONER THE 1ST RESPONDENT. EXHIBIT P2 TRUE COPY OF THE DETAILS OF DEPOSITS OF THE PETITIONER WITH CO-OPERATIVE BANK. FOR THE ASSESSMENT YEAR 2020-21 DATED 17/4/2020 EXHIBIT P3 TRUE COPY OF THE DETAILS OF DEPOSITS OF THE PETITIONER WITH TREASURY FOR THE ASSESSMENT YEAR 2020-21. EXHIBIT P4 -. TRUE COPY OF THE ASSESSMENT ORDER DATED 24.09.2022 ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2020-21. EXHIBIT P5 TRUE COPY OF THE NOTICE DATED 24.09.2022 ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2020-21. RESPONDENTS' EXHIBITS:NIL TRUE COPY P.A. TO JUDGE "