Operative Society Limited v. Chief

IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 27 DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MS. JUSTICE JYOTI MULIMANI -WRIT PETITION NO. 104318 OF 2023 (TIT)BETWEEN: - 2 - THIS WRIT PETITION IS LISTED FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, AN ORDER IS MADE AS UNDER: ORAL ORDER Sri.Sangram S.Kulkarni., counsel for the petitioner and Ms.Roopa Anavekar., counsel for the respondent have appeared in person. Sri.M.Thirumalesh., counsel for the respondent has appeared through video conferencing. 2. The short facts are these: Shree Masnangal Souharda Credit Sahakari Niyamit is a Society registered under the Karnataka Souharda Sahakari Act, 1997 and is engaged in accepting deposits from its members and disbursing loans to them. The income of the society is entitled to deduction under Section 80 P of the Income Tax Act, 1961. The society has been filing its income tax returns regularly within the due date. Due to genuine reasons, the society filed its income tax returns for the Assessment Year 2022-23 on 18.11.2022, beyond the due date of 07.11.2022. However, the income of the Society was eligible for deduction under Section 80P of the Act and the same was claimed under - 3 - NC: 2024:KHC-D:14120 WP No. 104318 of 2023 the return of income filed delayed by eleven days on 18.11.2022. Hence, the petitioner applied under Section 119(2)(b) of the Act to condone the nominal delay of eleven days in filing the return of income for the Assessment Year 2022-23. The respondent vide order dated 22.02.2023 rejected the delay condonation application. Hence, the petitioner has filed the captioned Writ Petition under Articles 226 and 227 of the Constitution of India on several grounds as set out in the Memorandum of Writ Petition. 3. Counsel Sri.Sangram S.Kulkarni., in presenting his arguments submits that the delay in filing the income tax returns was beyond the assessee’s control. Counsel, therefore, submits that the Writ Petition may be allowed. Counsel placed reliance on the decision in KANYAKAPARAMESHWARI CO- OPERATIVE SOCIETY LIMITED VS. CHIEF COMMISSIONER OF INCOME-TAX – W.P.No.22423/2024 disposed of on 21.08.2024. By way of reply, counsel Sri.M.Thirumalesh., justified the action of the department. He submits that the Writ Petition is devoid of merits and the same may be dismissed. 4. Heard the arguments and perused the Writ papers with utmost care. 5. The issue revolves around a narrow compass and relates to a delay. Suffice it to note that the petitioner filed the return of income and there was a nominal delay of eleven days and the delay was beyond the assessee’s control. In my view, the delay ought to have been condoned by the respondent but the same has not been done. Hence, the order dated 22.02.2023 is liable to be set aside, and so it is set aside. The nominal delay of 11 days is condoned. 6. The Writ of Certiorari is ordered. The order dated 22.02.2023 passed by the respondent in DIN & Order No: ITBA/COM/F/17/2022-23/1049992997(1) for the Assessment Year 2022-23 vide Annexure-A is quashed. 7. Resultantly, the Writ Petition is disposed of. TKN LIST NO.: 1 SL NO.: 56 Sd/- (JYOTI MULIMANI) JUDGE