Vazhithala Service Co-operative Bank Ltd No. 908 V. Assessment Unit, National Faceless Assessment Centre, Delhi and The Principal Commissioner of Income Tax

WP(C)/30781/2022

AI Insights

The case involves M/s Vazhithala Service Co-operative Bank Ltd, the petitioner, who challenged the assessment order and penalty notice issued by the National Faceless Assessment Centre, Delhi, and the Principal Commissioner of Income Tax, Ernakulam. The petitioner argued that the assessment was completed without adhering to the legal precedents set by a Division Bench of the High Court in ITA No.323 of 2019 and connected cases. Despite the absence of specific reference to the judgment in the assessment order, a similar judgment was cited during the proceedings. The court found merit in the petitioner's arguments and decided to quash the previous orders, mandating a re-evaluation of the case in accordance with the cited legal precedents.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 805704 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 27-10-2022
• Assessment Year: misc
• Other Referred Cases: ITA No.323 of 2019 and connected cases
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH; CHRISTOPHER ABRAHAM
• Assessee Lawyers: S RAJ; C T SUJA
• Keywords: Assessment Order; Faceless assessment; Penalty notice; Reconsideration of Assessment
• Section: 143(3); 274; 270A; 144B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. THURSDAY, THE 27TH DAY OF OCTOBER 2022 / 5TH KARTHIKA, 1944 WP(C) NO. 30781 OF 2022 PETITIONER: M/S VAZHITHALA SERVICE CO-OPERATIVE BANK LTD NO. 908 VAZHITHALA SCB BUILDING, VAZHITHALA P.O., THODUPUZHA, PIN – 685 583. REPRESENTED BY ITS SECRETARY REJI N. ABRAHAM BY ADVS. S.ARUN RAJ C.T.SUJA RESPONDENTS: 1 ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI, PIN – 110 003. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX CENTRAL REVENUE BUILDING, IS PRESS ROAD, ERNAKULAM, KOCHI, PIN – 682 018. BY ADVS. JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C)No.30781/2022 2 JUDGMENT The petitioner has approached this Court being aggrieved by the fact that the 1st respondent has completed the assessment against the petitioner by Ext.P3 order without applying and following the law laid down by a Division Bench of this Court in ITA No.323 of 2019 and connected cases (Ext.P4). 2. The learned counsel appearing for the petitioner submits that following Ext.P3 order of assessment, Ext.P5 notice for imposition of penalty has also been issued to the petitioner. It is submitted that though Ext.P4 judgment was not specifically brought to the notice of the assessing officer another judgment of this Court which takes the same view was brought to the notice of the assessing officer (reference is made in this regard to Ext.P2). 3. Heard the learned Standing Counsel appearing for the respondent department also. 4. Having regard to the facts and circumstances of the case and considering the submissions made by the learned counsel appearing for the petitioner as recorded above, W.P.(C)No.30781/2022 3 Ext.P3 order of assessment and Ext.P5 notice for imposition of penalty are quashed. The 1st respondent is directed to reconsider the matter taking note of the law laid down by this Court in ITA No.323/2019 and connected cases (Ext.P4) and to complete the assessment afresh after affording to the petitioner an opportunity of being heard. Sd/- GOPINATH P. JUDGE ats W.P.(C)No.30781/2022 4 APPENDIX OF WP(C) 30781/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE SHOW CAUSE NOTICE DATED 22-03- 2022 OF THE ACT ALONG WITH THE DRAFT ASSESSMENT ORDER DATED 21-03-2022 ISSUE BY THE 1ST RESPONDENT FOR THE AY 2020-21 Exhibit P2 TRUE COPY OF THE REPLY DATED 26-03-2022 SUBMITTED BY THE PETITIONER TO THE 1ST RESPONDENT IN RESPONSE TO EXHIBIT P-1 FOR THE AY 2020-21 Exhibit P3 TRUE COPY OF THE ASSESSMENT ORDER DATED 06-09- 2022 PASSED U/S 143(3) R.W.S 144B OF THE ACT BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2020-21 Exhibit P4 TRUE COPY OF THE JUDGMENT DATED 01-11-2021 PASSED BY THE DIVISION BENCH OF THIS HONOURABLE COURT IN ITA NO. 323 OF 2019 AND CONNECTED CASES Exhibit P5 TRUE COPY OF THE PENALTY NOTICE DATED 06-09- 2022 UNDER SECTION 274 R.W.S 270A OF THE ACT FOR THE AY 2020-21 ISSUED BY THE 1ST RESPONDENT "