THENHIPALAM CO-OPERATIVE RURAL BANK LTD V. INCOME TAX OFFICER,

WP(C)/16488/2021

AI Insights

The case involves Thenhipalam Co-operative Rural Bank Ltd, which challenged an order from the Income Tax Department that rejected their appeal due to an alleged failure to submit proof of fee payment. The petitioner argued that the fees had been paid well in advance, as documented in Ext.P3. The respondents conceded the error but suggested that the appeal might be handled by a different authority under the 'Faceless Appeal Scheme'. The court decided to set aside the rejection and directed the competent authority to address the appeal in accordance with the law.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 689610 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 12-08-2021
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CRISTOPHER ABRAHAM
• Assessee Lawyers: HARISANKAR MENON; MEERA MENON
• Keywords: Co-operative Bank; Faceless appeal scheme; Income Tax; Statutory Appeal
• Section: 250

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN THURSDAY, THE 12TH DAY OF AUGUST 2021 / 21ST SRAVANA, 1943 WP(C) NO. 16488 OF 2021 PETITIONER: THENHIPALAM CO-OPERATIVE RURAL BANK LTD NO.M-668, 6/749, 1ST FLOOR, THENHIPALAM P.O., MALAPPURAM, REPRESENTED BY ITS SECRETARY, LATHA TALAPPIL BY ADVS. HARISANKAR V. MENON MEERA V.MENON RESPONDENTS: 1 INCOME TAX OFFICER, WARD 3, TIRUR, MALAPPURAM-676 101 2 COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, DELHI-110 001 SRI. CRISTOPHER ABRAHAM - SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.08.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 16488 OF 2021 2 JUDGMENT The petitioner, which is stated to be a Co- operative Bank, has approached this Court impugning Ext.P5 order issued by the Income Tax Department under Section 250 of the Income Tax Act, 1961, rejecting its statutory Appeal solely for the reason that “no Chellan evidencing payment of fees has been enclosed with the Appeal” (sic). 2. The petitioner asserts that, as is evident from Ext.P3, necessary fees had been remitted as early as on 22.02.2016 and therefore, that the Authority could not have issued Ext.P5 order in the manner as it is presently worded. The petitioner, therefore, prays that Ext.P5 be set aside and the 2nd respondent be directed to take up Ext.P2 statutory Appeal and dispose it of on its merits. 3. Shri.Christopher Abraham, learned Standing Counsel appearing for the respondents, conceded that since Ext.P3 evidences the payment of necessary fees, Ext.P2 Appeal will have to be decided by the WP(C) NO. 16488 OF 2021 3 competent Authority in terms of law. He, however, submitted that since the “Faceless Appeal Scheme” has already came into force, it may not be the 2nd respondent who is the competent Authority; and thus prayed that this Court may allow such Authority to take up the Appeal and dispose it of in terms of law. 4. I, therefore, asked Shri.Harisankar V.Menon, learned counsel for the petitioner, whether his client is insisting that the 2nd respondent himself must hear Ext.P2 Appeal, to which, he responded by saying that his client only wants its contentions to be properly appreciated by a competent Authority and therefore, leaves it to this Court to issue appropriate orders. In the afore circumstances and since I am convinced that the necessary fees in support of Ext.P2 Appeal has already been paid by the petitioner, as is evident from Ext.P3, I allow this writ petition and set aside Ext.P5; with a resultant direction to the competent Authority of the Income WP(C) NO. 16488 OF 2021 4 Tax Department to take up Ext.P2 Appeal and dispose it of as per law, following due procedure. Sd/- DEVAN RAMACHANDRAN JUDGE MC/18.8 WP(C) NO. 16488 OF 2021 5 APPENDIX OF WP(C) 16488/2021 PETITIONER EXHIBITS Exhibit P1 COPY OF ASSESSMENT ORDER IS ISSUED BY THE 1ST RESPONDENT Exhibit P2 COPY OF APPEAL IS FILED BY THE PETITIONER BEFORE THE CIT (APPEALS) KOZHIKODE Exhibit P3 COPY OF TAX PAYER COUNTERFOIL OF THE STATE BANK OF INDIA OF RS .1000/- Exhibit P4 COPY OF NOTICE IS ISSUED BY THE 2ND RESPONDENT Exhibit P5 COPY OF ORDER IS ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2013-14 "