Manambur Service Co-Operative Bank Limited v. Income-tax Officer, Ward-2(5), Trivandrum/The Income-tax Officer, Ward-2(3), Trivandrum/The Commissioner of Income-Tax (Appeals)-1, Trivandrum
[Citation -2020-LL-0122-73]

Citation 2020-LL-0122-73
Appellant Name Manambur Service Co-Operative Bank Limited
Respondent Name Income-tax Officer, Ward-2(5), Trivandrum/The Income-tax Officer, Ward-2(3), Trivandrum/The Commissioner of Income-Tax (Appeals)-1, Trivandrum
Court HIGH COURT OF KERALA AT ERNAKULAM
Relevant Act Income-tax
Date of Order 22/01/2020
Assessment Year 2015-16
Judgment View Judgment
Keyword Tags rectification of mistake • eligible deduction • statutory appeal • coercive steps • demand notice • suo motu
Bot Summary: SRI.CHRISTOPHER ABRAHAM, STANDING COUNSEL THIS WRIT PETITION HAVING COME UP FOR ADMISSION ON 22.01.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ALEXANDER THOMAS, J. W.P.(C) No. 601 of 2020 Dated this the 22nd day of January, 2020 JUDGMENT The facts projected in this Writ Petition are as follows: The petitioner is a primary co-operative society who filed return of income for the assessment year 2015-16 declaring total income at Nil after claiming eligible deduction u/s 80P of the Income Tax Act, 1961. The petitioner filed Ext.P3 statutory appeal before the 3rd respondent challenging Ext.P-1 assessment order. The petitioner filed objection and also enlightened the 3 rd respondent the clarification Circular No.133/6 dated 9.5.2017 issued by the Central Board of Direct Taxes that a co-operative society, irrespective of its classification or nomenclature, is eligible for deduction u/s80P. But without considering any of the objections raised by the petitioner, the 3 rd respondent unilaterally allowed the rectification petition as per Ext.P-6. To issue a writ, order or direction to the 1 st respondent to keep in abeyance all the recovery proceedings pursuant to Ext.P22, P23 and P24 letters of demand till the final disposal of the appeals before the 3rd respondent. To issue a writ of mandamus or other appropriate writ, order or direction to the 2nd respondent to consider the Exts.P8, P15 and P21 rectification petitions on merit and also restrain the respondents from initiating coercive proceedings against the petitioner society till the final orders are passed in Exts.P8, P15 and P21 by the 3rd respondent. Heard Sri.C.A.Jojo, learned counsel appearing for the petitioner and Sri.Christopher Abraham, learned Standing Counsel for the Income Tax Department appearing for the respondents. With these observations and directions, the above Writ Petition stands finally disposed of.


IN HIGH COURT OF KERALA AT ERNAKULAM PRESENT HONOURABLE MR. JUSTICE ALEXANDER THOMAS WEDNESDAY, 22ND DAY OF JANUARY 2020 / 2ND MAGHA, 1941 WP(C).No.601 OF 2020(A) PETITIONER: MANAMBUR SERVICE CO-OPERATIVE BANK LIMITED, NO.2825, REPRESENTED BY ITS SECRETARY SHRI R. SAILENDRAKUMAR, AGED 55 YEARS, MANAMBUR P. O., THIRUVANANTHAPURAM DISTRICT, KERALA, PIN - 695 605. BY ADV. SRI.C.A.JOJO RESPONDENTS: 1 INCOME TAX OFFICER WARD - 2(5) KOWDIAR, TRIVANDRUM - 695 003. 2 INCOME TAX OFFICER WARD - 2(3) KOWDIAR, TRIVANDRUM - 695 003. 3 COMMISSIONER OF INCOME TAX (APPEALS) - 1 OFFICE OF COMMISSIONER OF INCOME TAX (APPEALS), TRIVANDRUM - 695 003. SRI.CHRISTOPHER ABRAHAM, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.01.2020, COURT ON SAME DAY DELIVERED FOLLOWING: ALEXANDER THOMAS, J. W.P.(C) No. 601 of 2020 Dated this 22nd day of January, 2020 JUDGMENT facts projected in this Writ Petition (Civil) are as follows: petitioner is primary co-operative society who filed return of income for assessment year 2015-16 declaring total income at Nil after claiming eligible deduction u/s 80P of Income Tax Act, 1961. assessing officer completed assessment u/s 143(3) by Ext.P-1 order dated 29-11-2017 disallowing eligible deduction u/s 80(P)(2)(a)(i) of Income Tax Act, 1961 and computed total income as Rs.41,28,889/- as against declared income of Nil. Ext.P-2 demand notice u/s 156 for Rs.17,43,640/- also been issued. assessment was done against judgment of this Court in ITA.No.212/2013 dated 15.2.2016. petitioner filed Ext.P3 statutory appeal before 3rd respondent challenging Ext.P-1 assessment order. By Ext.P-4 order 3rd respondent allowed appeal by granting deduction u/s 80(P)(2)(d)(a)(i) of Income Tax Act, 1961, by deleting W.P.(C) No. 601 of 2020 ..3.. tax amount assessed by 1st respondent. After one year of Ext.P-4 order, 3rd respondent suo motu initiated rectification proceedings u/s 154 of said Act stating that there is apparent mistake. petitioner filed objection and also enlightened 3 rd respondent clarification Circular No.133/6 dated 9.5.2017 issued by Central Board of Direct Taxes that co-operative society, irrespective of its classification or nomenclature, is eligible for deduction u/s80P. But without considering any of objections raised by petitioner, 3 rd respondent unilaterally allowed rectification petition as per Ext.P-6. Consequent to that, 1st respondent issued Ext.P-7 order giving effect to order of 3rd respondent. Aggrieved by Ext.P-6 order, petitioner filed Ext.P-8 petition for rectification of mistake u/s 154 of Income Tax Act, 1961, which is pending before 3 rd respondent. Meanwhile, coercive steps are initiated to recover disputed tax amount from petitioner. similar issues occurred for assessment years 2013-14 and 2008-09. Exts.P-8, P-15 and P-21 statutory rectification petitions are pending before W.P.(C) No. 601 of 2020 ..4.. 3rd respondent. But 1st respondent initiated coercive steps by by Exts.P-22, P-23 and P-24 letters of demand to recover disputed tax amount. It is in light of these averments and contentions that petitioner has filed instant Writ Petition (Civil) with following prayers: i. To issue writ of certiorari quashing Ext.P6, P13 and P19 rectification orders and P22, P23 and P24 letters of demand issued by respondents. ii. To issue writ, order or direction to 1 st respondent to keep in abeyance all recovery proceedings pursuant to Ext.P22, P23 and P24 letters of demand till final disposal of appeals before 3rd respondent. iii. To issue writ of mandamus or other appropriate writ, order or direction to 2nd respondent to consider Exts.P8, P15 and P21 rectification petitions on merit and also restrain respondents from initiating coercive proceedings against petitioner society till final orders are passed in Exts.P8, P15 and P21 by 3rd respondent. iv. To grant such other reliefs which this Hon'ble Court may deem fit and proper in circumstances of case. 2. Heard Sri.C.A.Jojo, learned counsel appearing for petitioner and Sri.Christopher Abraham, learned Standing Counsel for Income Tax Department appearing for respondents. 3. Taking note of facts and circumstances of case, it is ordered that rectification applications as per Exts.P-8, P-15 & P-21 will be taken up for consideration by R-3 without W.P.(C) No. 601 of 2020 ..5.. much delay, and affording reasonable opportunity of being heard to petitioner through authorised representative/counsel, if any, may pass orders thereon without much delay preferably within period of 4 to 6 weeks from date of production of certified copy of this judgment. Until orders are passed on Exts.P-8, P-15 & P-21 as aforestated, further coercive steps for enforcement of impugned orders shall be kept in abeyance by respondents concerned. With these observations and directions, above Writ Petition (Civil) stands finally disposed of. Sd/- ALEXANDER THOMAS, JUDGE MMG W.P.(C) No. 601 of 2020 ..6.. APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF ASSESSMENT ORDER DATED 29.11.2017 ISSUED BY FIRST RESPONDENT. EXHIBIT P2 TRUE COPY OF DEMAND NOTICE DATED 29.11.2017 ISSUED BY FIRST RESPONDENT. EXHIBIT P3 TRUE COPY OF E-FILED APPEAL FOR AY 2015-16 DATED 12.12.2017 FILED BEFORE 3RD RESPONDENT. EXHIBIT P4 TRUE COPY OF APPELLATE ORDER ISSUED BY 3RD RESPONDENT DATED 10.7.2018. EXHIBIT P5 TRUE COPY OF ORDER U/S 154 ISSUED BY 3RD RESPONDENT DATED 15.10.2019. EXHIBIT P6 TRUE COPY OF ORDER U/S 154 ISSUED BY 3RD RESPONDENT DATED 15.10.2019. EXHIBIT P7 TRUE COPY OF ORDER GIVING EFFECT ISSUED BY 1ST RESPONDENT DATED 15.11.2019. EXHIBIT P8 TRUE COPY OF PETITION FOR RECTIFICATION OF MISTAKE BEFORE 3RD RESPONDENT DATED 10.12.2019. EXHIBIT P9 TRUE COPY OF ASSESSMENT ORDER DATED 31.08.2015 ISSUED BY FIRST RESPONDENT. EXHIBIT P10 TRUE COPY OF DEMAND NOTICE DATED 31.08.2015 ISSUED BY FIRST RESPONDENT. EXHIBIT P11 TRUE COPY OF APPELLATE ORDER ISSUED BY 3RD RESPONDENT DATED 9.6.2016. EXHIBIT P12 TRUE COPY OF OBJECTION BEFORE 3RD RESPONDENT DATED 9.10.2019. EXHIBIT P13 TRUE COPY OF ORDER U/S 154 ISSUED BY 3RD RESPONDENT DATED 15.10.2019. W.P.(C) No. 601 of 2020 ..7.. EXHIBIT P14 TRUE COPY OF ORDER ISSUED BY 1ST RESPONDENT DATED 20.11.2019. EXHIBIT P15 TRUE COPY OF PETITION FOR RECTIFICATION OF MISTAKE BEFORE 3RD RESPONDENT DATED 10.12.2019. EXHIBIT P16 TRUE COPY OF ASSESSMENT ORDER DATED 22.3.2014 ISSUED BY 2ND RESPONDENT. EXHIBIT P17 TRUE COPY OF DEMAND NOTICE DATED 22.3.2014 ISSUED BY 2ND RESPONDENT. EXHIBIT P18 TRUE COPY OF OBJECTION BEFORE 3RD RESPONDENT DATED 12.10.2019. EXHIBIT P19 TRUE COPY OF ORDER U/S 154 ISSUED BY 3RD RESPONDENT DATED 15.10.2019. EXHIBIT P20 TRUE COPY OF ORDER ISSUED BY 1ST RESPONDENT DATED 19.11.2019. EXHIBIT P21 TRUE COPY OF PETITION FOR RECTIFICATION OF MISTAKE BEFORE 3RD RESPONDENT DATED 10.12.2019. EXHIBIT P22 TRUE COPY OF LETTER OF DEMAND AY 2015-16 DATED 2.1.2020 ISSUED BY 1ST RESPONDENT. EXHIBIT P23 TRUE COPY OF LETTER OF DEMAND AY 2013-14 DATED 2.1.2020 ISSUED BY 1ST RESPONDENT. EXHIBIT P24 TRUE COPY OF LETTER OF DEMAND AY 2008-09 DATED 2.1.2020 ISSUED BY 1ST RESPONDENT. EXHIBIT P25 TRUE COPY OF JUDGMENT OF THIS HON'BLE COURT IN WP(C) NO.33382/2019 DATED 6.12.2019. Manambur Service Co-Operative Bank Limited v. Income-tax Officer, Ward-2(5), Trivandrum/The Income-tax Officer, Ward-2(3), Trivandrum/The Commissioner of Income-Tax (Appeals)-1, Trivandrum
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