Melur Co-Operative Urban Bank Limited v. Deputy Commissioner Of Income Tax, Corporate Circle

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 08.03.2022 CORAM THE HONOURABLE MR.JUSTICE C.SARAVANAN W.P(MD).No.4132 of 2022 Melur Co-operative Urban Bank Limited,Represented by its Administrator,Mrs.M.Uma,D-317, Alagar Koil Road, Melur,Madurai – 625 106. ... Petitioner Vs. 1.Deputy Commissioner of Income Tax, Corporate Circle, No.2, VP Rathinaswamyanadar Road, CR Building Bibikulam, Madurai – 625 002. 2.Additional/Joint/Deputy/Assistant Commissioner, of Income Tax/Income Tax Officer, National Faceless Assessment Centre, Ministry of Finance, Income Tax Department, New Delhi – 110 055....Respondents Prayer: Writ Petition is filed under Article 226 of the Constitutionof India, praying this Court to issue a Writ of Certiorari, to callfor the records of the 2[nd ]respondent dated 27.01.2022 in OrderNo.ITBA/AST/S/147/2021-22/ 1039126094 (1) for the Assessment Year2017-18 passed under Section 147 read with Section 144 and 144B ofthe income tax Act and quash the same. For Petitioner : Mrs.M.Ramya For M/s.Mcgan Law FirmFor Respondents : Mr.N.Dilip Kumar Senior Standing Counsel ORDER 1. I have considered the arguments advanced by the learnedcounsel for the petitioner and the learned counsel for therespondents.https://hcservices.ecourts.gov.in/hcservices/ 2. The petitioner is only a Co-operative Urban Bank. Nodoubt,there is a failure on the part of the petitioner in not filingstatutory returns under Section 139 of the Income Tax Act, 1961 intime, nevertheless, the fact remains that after a notice was issuedon 27.03.2021 to the petitioner, which was addressed to the E-mailId of the petitioner’s auditor S.V.V.Ananthasayanam, who died on04.07.2020. Thus, the communications preceeding the impugned orderremained were not properly communicated to the petitioner. When theproceedings under Section 148 of the Act were initiated the wholecountry was still reeling under Covid-19 Pandemic. The time grantedto the petitioner in the show cause notice, dated 14.01.2022 up to18.01.2022 appears was too short. 3. Considering the fact that the petitioner could not reply toany of the notices issued earlier, which were addressed to thepetitioner’s Auditor, namely, late S.V.V.Ananthasayanam, andconsidering the fact that the petitioner is bonfide assessee and haspaid an advance tax on 15.03.2017, I am inclined to set aside theimpugned order and remit the case back to the respondents to passfresh order. 4. Accordingly, the impugned order is set aside and the case isremitted back to the second respondents to pass a fresh orderdenovo, on merits and in accordance with law preferably within aperiod of ninety days from the date of receipt of this order. Thepetitioner is directed to get ready with a reply and file the samewithin a period of fifteen days from date of the intimation from theoffice of the second respondent to reply to the show cause notice,dated 14.01.2022. The impugned order which stands quashed shall alsobe treated as a corrigendum to show cause notice, dated 14.01.2022already issued to the petitioner. The petitioner shall place all thefact and give a consolidated reply before the second respondent. 5. The writ petition stands disposed of with the aboveobservations. No costs. Consequently, the connected MiscellaneousPetitions are closed. Sd/- Assistant Registrar(P & A) / /2022Sub Assistant Registrar(CS) sn https://hcservices.ecourts.gov.in/hcservices/ To 1.Deputy Commissioner of Income Tax, Corporate Circle, Madurai No.2, VP Rathinaswamyanadar Road, CR Building Bibikulam, Madurai – 625 002.2.Additional/Joint/Deputy/Assistant Commissioner, of Income Tax/Income Tax Officer, National Faceless Assessment Centre, Ministry of Finance, Income Tax Department, New Delhi – 110 055.+1 CC to M/s.MCGAN LAW FIRM, Advocate ( SR-10844[F] dated 09/03/2022)+1 CC to M/s.N.DILIPKUMAR, Advocate ( SR-10914[F] dated 09/03/2022 ) W.P(MD).No.4132 of 202208.03.2022 5. The writ petition stands disposed of with the aboveobservations. No costs. Consequently, the connected MiscellaneousPetitions are closed. Sd/- Assistant Registrar(P & A) / /2022Sub Assistant Registrar(CS) sn https://hcservices.ecourts.gov.in/hcservices/ To 1.Deputy Commissioner of Income Tax, Corporate Circle, Madurai No.2, VP Rathinaswamyanadar Road, CR Building Bibikulam, Madurai – 625 002.2.Additional/Joint/Deputy/Assistant Commissioner, of Income Tax/Income Tax Officer, National Faceless Assessment Centre, Ministry of Finance, Income Tax Department, New Delhi – 110 055.+1 CC to M/s.MCGAN LAW FIRM, Advocate ( SR-10844[F] dated 09/03/2022)+1 CC to M/s.N.DILIPKUMAR, Advocate ( SR-10914[F] dated 09/03/2022 ) W.P(MD).No.4132 of 202208.03.2022 KS(CO)TR(28.03.2022) 3P 5C