IN HIGH COURT OF KERALA AT ERNAKULAM PRESENT HONOURABLE MR. JUSTICE AMIT RAWAL WEDNESDAY, 24TH DAY OF JUNE 2020 / 3RD ASHADHA, 1942 WP(C).No.12511 OF 2020(L) PETITIONER/S: ERNAKULAM DISTRICT POSTS TELECOM AND BSNL EMPLOYEES CO OPERATIVE SOCIETY LTD. NO.E.85 P AND T CO-OPERATIVE BHAVAN, CHURCH LAND ROAD, COCHIN-682 016,REPRESENTED BY ITS SECRETARY MR.MANOJ THOMAS BY ADV. SRI.ANIL D. NAIR RESPONDENT/S: 1 INCOME TAX OFFICER NON CORPORATE WARD 1 (5), KOCHI-682 018 2 DEPUTY COMMISSIONER OF INCOME TAX, CPC,PST BAG-2, ELECTRONIC CITY POST OFFICE, BANGALORE-560 500 OTHER PRESENT: SRI CHRISTOPHER ABRAHAM SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.06.2020, COURT ON SAME DAY DELIVERED FOLLOWING: WP(C).No.12511 OF 2020 -2- JUDGMENT Dated this 24th day of June 2020 Challenging Ext.P7 this writ petition is filed. Petitioner is Co-operative Society registered under Co-operative Societies Act, 1969. It is assessee under Income tax Act. return of income for assessment year 2018- 19 has to be filed on or before 31.10.2019. However, as per circular dated 27.02.2019 of Central Board of Direct Tax, time to file return was extended upto 28.02.2020. Petitioner filed returns within aforementioned provisions of circular however received assessment on 29.06.2019. Petitioner filed rectification application dated 7.11.2019, however vide communication dated 29.01.2020 concerned Income Tax Officer informed petitioner that owing to non functionality that petitioner rectification cannot be decided. 2. Sri. Anil D.Nair, learned counsel for petitioner submits that without complying principles of natural WP(C).No.12511 OF 2020 -3- justice impugned order Ext.P7 dated 05.06.2020 has been passed by rejecting rectification application. impugned order is bereft of reasons and cannot stand test of legitimate expectation. It is in these circumstances, instead of taking alternative remedy, extra ordinary jurisdiction of this Court under Article 226 has been invoked. 3. Issue notice before admission. Mr.Christopher Abraham, who present in video court hearing accepts notice and raised objection with regard to maintainability of this writ petition in view of alternative remedy available, and urges this Court for dismissal of this writ petition. 4. I have heard learned counsel for parties and appraised paper books and find some force and merit in submission of Sri.Anil D.Nair. 5. communication Ext.P5 dated 29.01.2020 and order impugned Ext.P7 dated 05.06.2020 are extracted herein below: WP(C).No.12511 OF 2020 -4- Ext.P5: Grievance Raised: WE HAVE RECEIVED DEMAND ORDER UNDER SECTION 154 STATING THAT, DEDUCTION UNDER SECTION 80P WILL NOT BE AVAILABLE SINCE RETURN IS FILED AFTER DUE DATE. BUT WE HAVE FILED ORIGINAL RETURN BEFORE DUE DATE EXTENDED FOR STATE OF KERALA. resolution for your grievance application: As per CBDT's order u/s 119(2) dated 27.02.2019, it is mentioned that all return of income and reports of audit which are filed till 28/02/2019 shall be deemed to have been filed by 31/10/2018. On basis of this intimation u/s 143(1) has to be rectified. But functionality of rectification of ITR for AY 2018-19 is not available in ITBA as of now, CPC informed that same will be available soon. Hence rectification order can be passed only when functionality for AY 2018-19 is available in system. EXT.P7: Grievance Raised: WE HAVE RECEIVED DEMAND ORDER UNDER SECTION 154 STATING THAT, DEDUCTION UNDER SECTION 80P WILL NOT BE AVAILABLE SINCE RETURN IS FILED AFTER DUE DATE. BUT, WE HAVE FILED ORIGINAL RETURN BEFORE DUE DATE EXTENDED FOR SATE OF KERALA. resolution for your grievance application: Disallowance of deduction u/s 80P shown in intimation u/s 143(1) dated 29/06/2019 issued by CPC cannot be rectified as same will not come under purview of rectification u/s 154. On joint reading of contents of aforementioned communication, it is clear that rectification application would not have been undertaken, owing to certain technical problems i.e, functionality of WP(C).No.12511 OF 2020 -5- Department. However vide impugned communication dated 05.07.2019 Ext.P5, same has been rejected in most sketchy and mechanical manner. Even order do not disclose affording of any other opportunity of hearing. 6. Considering facts and circumstances, I am of view that petitioner cannot be relegated to alternate remedy as order prima facie is without jurisdiction. Accordingly, impugned order Ext.P7 dated 05.06.2020 is quashed and matter is remitted to 1 st respondent to decide rectification application Ext.P6 afresh, in accordance with law, after affording opportunity of being heard to petitioner. Let this exercise be undertaken within period of two months from date of receipt of certified copy of judgment. Till such time, no coercive measures shall be taken against petitioner. Sd/- AMIT RAWAL JUDGE vv WP(C).No.12511 OF 2020 -6- APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF INTIMATION DATED 29.6.2019 FOR ASSESSMENT YEAR 2018-19 EXHIBIT P2 TRUE COPY OF COMMUNICATION DATED 12.2.2019 ISSUED BY 2ND RESPONDENT TO PETITIONER EXHIBIT P3 TRUE COPY OF CIRCULAR UNDER SEC 119(2) ISSUED BY CBDT EXHIBIT P4 TRUE COPY OF ACKNOWLEDGMENT DATED 7.11.2019 TO PETITIONER EXHIBIT P5 TRUE COPY OF ORDER DATED 29.1.2020 ISSUED BY 1ST RESPONDENT EXHIBIT P6 TRUE COPY OF APPLICATION DATED 5.6.2020 FILED BY PETITIONER BEFORE 1ST RESPONDENT EXHIBIT P7 TRUE COPY OF ORDER DATED 5.6.2020 ISSUED BY 1ST RESPONDENT Ernakulam District Posts Telecom and BSNL Employees Co-operative Society Ltd. v. Income-tax Officer, Non-Coporate Ward-1(5), Kochi / Deputy Commissioner of Income-tax, CPC, Bangalore