THONDERNADU SERVICE CO-OPERATIVE SOCIETY LTD V. INCOME TAX OFFICER

WP(C)/30703/2021

AI Insights

The case involves Thondernadu Service Co-operative Society Ltd., a Primary Agricultural Credit Society, which challenged the penalty orders imposed under Sections 271D and 271E of the Income Tax Act for the assessment year 2015-16. The penalties were contested through appeals filed in 2018, which remained unresolved for two years, prompting the society to seek judicial intervention. The respondents, including the Income Tax Officer and the Commissioner of Income Tax (Appeals), were represented by the Standing Counsel, Christopher Abraham. The court's decision was influenced by the procedural changes under the Faceless Assessment Scheme, requiring the transfer of appeals to a Faceless Appellate Authority.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 686681 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 03-01-2022
• Assessment Year: misc
• Other Referred Cases: WP(C) 12007/2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: P R VENKATESH; G KEERTHIVAS
• Keywords: Appeal; Faceless Assessment Scheme; Penalty; Recovery proceedings
• Section: 271D; 271E; 269SS

Judgement Text

"WP(C) NO. 30703 OF 2021 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS MONDAY, THE 3RD DAY OF JANUARY 2022 / 13TH POUSHA, 1943 WP(C) NO. 30703 OF 2021 PETITIONER/S: THONDERNADU SERVICE CO-OPERATIVE SOCIETY LTD MAKKIYAD P. O., WAYANAD DISTRICT - 670731, REPRESENTED BY ITS SECRETARY. BY ADVS. P.R.VENKATESH G.KEERTHIVAS RESPONDENT/S: 1 INCOME TAX OFFICER AYAKAR BHAVAN, KALPETTA - 673122. 2 JOINT COMMISSIONER OF INCOME TAX OFFICE OF THE INCOME TAX DEPARTMENT, RANGE - II, KOZHIKODE - 673001. 3 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, KOZHIKODE DISTRICT - 673 001. OTHER PRESENT: SC, INCOME TAX DEPARTMENT- CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.01.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 30703 OF 2021 2 BECHU KURIAN THOMAS, J. ======================== W.P.(C)No.30703 of 2021 ------------------------------------------------ Dated this the 3rd day of January, 2022 JUDGMENT Petitioner is a Primary Agricultural Credit Society. By virtue of Exts.P1 and P2, petitioner was imposed with penalty under Sections 271 D and 271 E respectively for the assessment year 2015-16. Challenging the said penalty orders, appeals have been preferred before the 3rd respondent as early as in 2018. The grievance of the petitioner is that in spite of the lapse of 2 years, the 3rd respondent has not disposed of the appeals and in the meantime, proceedings are initiated to recover the amounts imposed under Ext.P1 and Ext.P2. 2. Sri.Christopher Abraham, the learned Standing Counsel for the respondents submitted that after the coming into force of Faceless Assessment Scheme, the appeals are required to be heard by the Faceless Appellate Authority and the 3rd respondent will have to transfer the memorandum of appeals to the said appellate assessment centre. 3. Having regard to the circumstances of the case, and having regard to the submissions made by the learned learned Counsel for the WP(C) NO. 30703 OF 2021 3 petitioner as well as the learned Counsel for the respondents, I deem it fit to dispose of this writ petition by directing the competent appellate authority to consider and pass appropriate orders on the appeals, filed as Exts.P3 and P4, as expeditiously as possible, at any rate, within a period of six months from the date of receipt of a copy of this judgment, In view of similar orders passed by this Court, copy of which is produced as Ext.P8, there will be a direction to the respondents not to pursue recovery proceedings against the petitioner, till such disposal. The writ petition is disposed of accordingly. sd/ BECHU KURIAN THOMAS JUDGE jm/ WP(C) NO. 30703 OF 2021 4 APPENDIX OF WP(C) 30703/2021 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ORDER DATED 26.07.2018 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 27ID READ WITH SECTION 269SS OF THE INCOME TAX ACT AGAINST THE PETITIONER. Exhibit P2 TRUE COPY OF THE ORDER DATED 26.07.2018 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 27IE READ WITH SECTION 269SS OF THE INCOME TAX ACT AGAINST THE PETITIONER. Exhibit P3 TRUE COPY OF THE APPEAL PREFERRED BY THE PETITIONER AGAINST EXHIBIT P1 DATED 25.01.2018 BEFORE THE 3RD RESPONDENT. Exhibit P4 TRUE COPY OF THE APPEAL PREFERRED AGAINST EXT. P2 ORDER DATED 27.08.2018 BEFORE THE 3RD RESPONDENT. Exhibit P5 TRUE COPY OF THE LETTER DATED 14.12.2021 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER. Exhibit P6 TRUE COPY OF THE NOTICE OF DEMAND FOR RS.95658088/- DATED 26.07.2018. Exhibit P7 TRUE COPY OF THE NOTICE OF DEMAND FOR RS.106442687/- DATED 26.07.2018. Exhibit P8 TRUE COPY OF THE JUDGMENT DATED 11.10.2019 IN WP(C) 12007/2019 OF THIS HON'BLE COURT. "