Thuruthipuram Service Co-operative Bank Ltd. No.1789 V. The Income Tax Officer, Corporate Ward and The Assessment Unit National E-Assessment Center, Income Tax Department and The Deputy Commissioner of Income Tax/Joint Commissioner of Income Tax (Appeals), National Faceless Appellate Center

WP(C)/1220/2024

AI Insights

The case involves M/s. Thuruthipuram Service Co-operative Bank Ltd., which filed a writ petition against the Income Tax Department concerning the assessment order for the year 2020-21. The petitioner sought relief to expedite the decision on their appeal and stay petition against the assessment order, which included a significant interest income assessment and initiated penalty proceedings under Section 270A of the Income Tax Act, 1961. The court's decision emphasized the separation of judicial functions between the High Court and the appellate authorities, directing the latter to handle the stay petition promptly.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 808151 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 11-01-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Assessee Lawyers: M M MONAYE; V P NARAYANAN; M VARGHESE; K V SANOSH; ANJANA SUGUNAN
• Keywords: Assessment Order; Deduction; Income Tax; Interest income; Penalty proceedings; Stay Petition
• Section: 143(3); 142(1); 143(2); 270A; 144B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH THURSDAY, THE 11TH DAY OF JANUARY 2024 / 21ST POUSHA, 1945 WP(C) NO. 1220 OF 2024 PETITIONER/S: M/S. THURUTHIPURAM SERVICE CO-OPERATIVE BANK LTD. NO.1789, THURUTHIPURAM P.O., PUTHENVELLIKARA, ERNAKULAM- 680667, REPRESENTED BY ITS SECRETARY, SHYMA. BY ADVS. M.M.MONAYE V.P.NARAYANAN M.PAUL VARGHESE K.V.SANOSH ANJANA SUGUNAN RESPONDENT/S: 1 THE INCOME TAX OFFICER, CORPORATE WARD , CENTRAL REVENUE BUILDING, IS PRESS ROAD, ERNAKULAM, PIN - 682018 2 THE ASSESSMENT UNIT NATIONAL E-ASSESSMENT CENTER, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL STADIUM, NEW DELHI-110003,REPRESENTED BY COMMISSIONER OF INCOME TAX. 3 THE DEPUTY COMMISSIONER OF INCOME TAX /JOINT COMMISSIONER OF INCOME TAX (APPEALS), INCOME TAX DEPARTMENT, NATIONAL FACELESS APPELLATE CENTER, NEW DELHI, PIN - 110003 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 1220 OF 2024 2 J U D G M E N T The present writ petition has been filed, inter alia seeking a relief in the nature of writ/direction to the 3rd respondent to decide appeal and stay petition at Exts.P2 and P3, respectively, filed against the assessment order in Ext.P1 for the assessment year 2020-21, expeditiously. 2. The petitioner filed return of its income for the assessment year 2020-21 on 6.1.2021. The case of the petitioner/assessee was selected for complete scrutiny under CASS to verify, the claim of any other amount allowable as deduction in Schedule BP, high creditors/liabilities and deduction under Section 80P. 3. A notice under Section 143(2) of the Income Tax Act, 1961 ('Act', for short) dated 29.6.2021 was served on the petitioner. Thereafter, notices under Section 142(1) of the Act WP(C) NO. 1220 OF 2024 3 dated 3.12.2021 and 7.2.2022 were issued. The assessing authority denied the petitioner's claim for deduction of interest earned by it on deposits. The petitioner's interest income has been assessed at Rs.18,17,072/- under Sections 143(3) read with 144B of the Act. Interest has been charged. Penalty proceedings under Section 270A of the Act has been directed to be initiated against the petitioner. 4. The petitioner is aggrieved by the assessment order as stated above. This Court would not like to exercise parallel jurisdiction with the appellate authority for granting an interim order as prayed for by the learned counsel for the petitioner. 5. In view thereof, the present writ petition is disposed of with direction to the 3rd respondent to consider and pass appropriate orders, in accordance with law, on the stay petition, Ext.P3, WP(C) NO. 1220 OF 2024 4 expeditiously, preferably within a period of two months. Pending interlocutory application, if any, in the present writ petition stands dismissed. Sd/- DINESH KUMAR SINGH JUDGE jg WP(C) NO. 1220 OF 2024 5 APPENDIX OF WP(C) 1220/2024 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE ASSESSMENT ORDER ALONG WITH THE DEMAND DATED 27.09.2022 ISSUED BY THE 2ND RESPONDENT FOR AY 2020-21 Exhibit P2 THE TRUE COPY OF THE MEMORANDUM OF APPEAL IN FORM NO. 35 FOR THE ASSESSMENT YEAR 2020-21 DATED 28.10.2022 FILED BEFORE THE 3RD RESPONDENT Exhibit P3 THE TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DATED 28-10-2022 Exhibit P4 THE TRUE COPY OF CONDONATION OF DELAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DATED 28-10-2022 Exhibit P5 THE TRUE COPY OF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 25.12.2023 FOR AY 2020- 21 "