The Puliyoor Service Co-operative Bank Ltd No A109 V. The Principal Chief Commissioner of Income Tax, Kerala Region and The Central Board of Direct Taxes [CBDT] and The National Faceless Assessment Centre [NFAC] and Income Tax Officer and State of Kerala and The Registrar of Co-operative Societies, Kerala and Joint Registrar of Co-operative Societies [General], Alappuzha

WP(C)/39941/2023

AI Insights

The case involves the Puliyoor Service Co-operative Bank Ltd, which did not file a return of income for the assessment year 2015-16. The bank's case was selected for reassessment under the Income Tax Act, 1961, as it was believed that income had escaped assessment. Notices under Sections 148 and 148A of the Act were issued to the bank, which failed to respond adequately. Consequently, a show cause notice under Section 144 was issued, to which the bank still had time to respond. The court dismissed the writ petition, upholding the actions of the tax authorities.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 681438 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 05-12-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: DIPU; P V VENUGOPAL; K S DEVI KRIPA R; DHANYA NEETHU SASI; ANSU MATHEW
• Keywords: Assessment Year 2015-16; Income Tax; Non compliance; Risk management strategy; Risk management strategy; Show cause notice
• Section: 147; 148; 144; 142(1); 148A(d)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH TUESDAY, THE 5TH DAY OF DECEMBER 2023/14TH AGRAHAYANA, 1945 WP(C) NO. 39941 OF 2023 PETITIONER: THE PULIYOOR SERVICE CO-OPERATIVE BANK LTD NO A109, REPRESENTED BY ITS SECRETARY PERISSERY P.O, CHENGANNOOR, ALAPPUZHA, PIN – 689126 BY ADVS. DIPU.R P.V.SARITHA VENUGOPAL K.S.BAIJU DEVI KRIPA R. DHANYA BABU NEETHU SASI ANSU SARA MATHEW RESPONDENTS: 1 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, KERALA REGION MINISTRY OF FINANCE, GOVERNMENT OF INDIA, CENTRAL REVENUE BUILDING, IS PRESS ROAD, KOCHI, PIN – 682018 2 THE CENTRAL BOARD OF DIRECT TAXES [CBDT], REPRESENTED BY THE CHAIRMAN DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI, PIN – 110001 3 THE NATIONAL FACELESS ASSESSMENT CENTRE [NFAC], REPRESENTED BY PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI, PIN – 110001 W.P .(C.) No.39941/2023 2 4 INCOME TAX OFFICER AYYANKAR BHAVAN, INCOME TAX OFFICE, [WARD 2], BEACH ROAD, ALAPPUZHA, PIN – 688001 5 STATE OF KERALA, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF CO-OPERATION SECRETARIAT, THIRUVANANTHAPURAM, PIN – 695001 6 THE REGISTRAR OF CO-OPERATIVE SOCIETIES, KERALA JAWAHAR SAHAKARNA BHAVAN, DPI JUNCTION, THYCAUD P.O, THIRUVANANTHAPURAM, PIN – 695014 7 JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES [GENERAL], ALAPPUZHA OFFICE OF THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, MULLACKAL, ALAPPUZHA, PIN – 688011 R1 TO R4 BY JOSE JOSEPH, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P .(C.) No.39941/2023 3 JUDGMENT The present writ petition filed under Article 226 of the Constitution of India has been filed impugning Exts.P2 order and P5 show cause notice under Sections 148A(d) and 144 of the Income Tax Act, 1961 (for short, the 'I.T.Act') respectively. The petitioner did not file return of its income for the assessment year 2015-16. The petitioner's case was selected in accordance with the risk management strategy formulated in this regard, as in the opinion of the authorities, the income of the petitioner has escaped assessment within the meaning of Section 147 of the I.T.Act. The petitioner was issued notice under Section 148 of the I.T.Act, on 07.04.2022 in Ext.P1. The petitioner did not respond to the said show cause notice and after giving an opportunity of hearing to the petitioner, the Ext.P2 order under clause(d) of Section 148A of the I.T.Act came to be passed on 06.04.2022. After the said order, various notices were issued to the petitioner, but the petitioner failed to respond to any of the notices and finally the impugned W.P .(C.) No.39941/2023 4 Ext.P5 notice dated 31.10.2023 has been issued to the petitioner under Section 144 of the I.T.Act, giving him time till 14.12.2023 to file response to the said show cause notice. The petitioner has still nine days left to file response/reply to the said show cause notice. This Court finds no ground to interfere with the writ petition. Therefore, the writ petition is dismissed as there is no error of jurisdiction or violation of principles of natural justice. Sd/- DINESH KUMAR SINGH JUDGE DCS/07.12.2023 W.P .(C.) No.39941/2023 5 APPENDIX PETITIONER EXHIBITS EXHIBIT P1 THE TRUE COPY OF NOTICE UNDER SECTION 148 OF THE ACT, 1961 DATED 07/04/2022 EXHIBIT P2 THE TRUE COPY OF ORDER UNDER SECTION 148A(D) DATED 06/04/2022 EXHIBIT P3 THE TRUE COPY OF NOTICE DATED 05/02/2023 UNDER SECTION 142(1) OF THE ACT. 1961 ALONG WITH ANNEXURE EXHIBIT P4 THE TRUE COPY OF NOTICE DATED 22/07/2023 UNDER SECTION 142(1) OF THE ACT. 1961 ALONG WITH ANNEXURE THERE TO EXHIBIT P5 \". THE TRUE COPY OF SHOW CAUSE NOTICE DATED 31/10/2023 UNDER SECTION 144 OF THE ACT, 1961 EXHIBIT P6 THE TRUE COPY OF E -PROCEEDINGS RESPONSE ACKNOWLEDGEMENT "