THE VENGARA SERVICE CO-OPERATIVE RURAL BANK LIMITED, NO.1186, V. THE COMMISSIONER OF INCOME TAX (APPEALS),

WP(C)/6878/2020

AI Insights

The case involves the Vengara Service Co-operative Rural Bank Limited, which approached the High Court of Kerala under Article 226 of the Constitution, seeking directions for the Commissioner of Income Tax (Appeals) to consider their rectification application regarding a common order dated 24th January 2020. The petitioner argued that they are not a Co-operative Bank and thus should not be excluded from the exemptions under Section 80P of the Income Tax Act. The respondents contended that the rectification application did not demonstrate any error apparent on record and suggested that the appropriate remedy would be to appeal before the Income Tax Appellate Tribunal. The court decided to direct the Commissioner of Income Tax (Appeals) to expedite the decision on the rectification application without commenting on its merits.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 753853 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 09-03-2020
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India, Section 80P
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: O D SIVADAS
• Keywords: Error apparent on record; Interim Stay; Outstanding Dues; Rectification Application
• Section: 80P

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL MONDAY, THE 09TH DAY OF MARCH 2020 / 19TH PHALGUNA, 1941 WP(C).No.6878 OF 2020(H) PETITIONER/S: THE VENGARA SERVICE CO-OPERATIVE RURAL BANK LIMITED, NO.1186, VENGARA P.O., VENGARA, MALAPPURAM, PIN - 673 635, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN, KOZHIKODE - 673 001. 2 THE INCOME TAX OFFICER, WARD 3, TIRUR, MALAPPURAM DISTRICT, PIN - 676 001. OTHER PRESENT: SRI CHRISTOPHER ABRAHAM SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.6878 OF 2020(H) 2 JUDGMENT The petitioner, Primary Agricultural Credit Society, has approached this Court under Article 226 of the Constitution of India for issuance of directions to the Commissioner of Income (Appeals) for consideration of rectification application dated 29th of February 2020 preferred against the common order dated 24th January 2020 within a reasonable period and further seeking interim stay of the order dated 3rd March 2020, Exts.P7 and P8 raising the demand of outstanding dues. 2. The learned counsel for the petitioner submits that the petitioner is not a Co-operative Bank and cannot be excluded from the exemption as enshrined under Section 80P . The reasoning assigned by the Commissioner of Income Tax is suffering from an error apparent on record and by noticing those errors, rectification application supported by various judgments is stated to be pending and prays for issuance of an appropriate direction. 3. The learned counsel for the respondent points out that the contents of the rectification application do not make out any case of error apparent on record that it is only just WP(C).No.6878 OF 2020(H) 3 reference to the judgments in the order of the Commissioner of Income Tax. While deciding the appeal preferred against the assessment orders, both the authorities found out advancement of the credit for two assessment years to the extent of 2.4 % and 1.7%. The petitioner failed to place on record any books of account to disbelieve such findings. The remedy is to prefer an appeal before the Income Tax Appellate Tribunal and prays for dismissal of the writ petition. 4. I have heard the learned counsel for the parties and apprised the paper book, I would be refraining myself from commenting, regarding the merit or demerit of the rectification application, prima facie this Court is of the view that hardly any cases of rectification as the orders sought to be recalled on the basis of an error apparent on record based upon the appreciation of the evidence and accounts noticing the disbursement of the amount to be 100% percentage as referred to above. Be that as it may, without commenting upon any merit of the matter and may not prejudice to the rights, I dispose of the writ petition with a direction to the Commissioner of Income Tax (Appeals) to decide the rectification application, Ext.P6 dated 29th of February 2020 WP(C).No.6878 OF 2020(H) 4 as expeditiously as possible within a period of 45 days from the date of receipt of a copy of this judgment. The writ petition stands disposed of. Any observations hereinabove would not be construed as an expression of opinion on the merit, in case the petitioner chose to file an appeal. Sd/- AMIT RAWAL sab JUDGE WP(C).No.6878 OF 2020(H) 5 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 26/12/2017 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2015-16. EXHIBIT P2 COPY OF THE ASSESSMENT ORDER DATED 22/12/2018 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2016-17. EXHIBIT P3 COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2015-16 DATED 28/01/2018. EXHIBIT P4 COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2016-17 DATED 20/01/2019. EXHIBIT P5 COPY OF THE COMMON ORDER DATED 24/01/2020 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P6 COPY OF THE RECTIFICATION APPLICATION FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT DATED 29/02/2020. EXHIBIT P7 COPY OF THE ORDER DATED 3/03/2020 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2015-16. EXHIBIT P8 COPY OF THE ORDER DATED 3/03/2020 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2016-17. "