Wp/15/2020 Of C.c.2360 Devampalayam Primary v. The Income Tax Officer

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 28.01.2020 CORAM THE HONOURABLE DR. JUSTICE ANITA SUMANTH Writ Petition Nos.15 of 2020, 33987 & 33981 of 2019WMP.Nos.9 & 10 of 2020, 34574, 34575, 34570, 34571 of 2019 C.C.2360, Devapalayam Primary,Agricultural Cooperative Credit Society Ltd.,Rep. by its Secretary,Kokila...Petitioner in W.P.No.15 of 2020 K.816, Telungupalayam Primary AgriculturalCooperative Credit Society,Rep. by its Secretary,Devilakshmi...Petitioner in W.P.No.33987 of 2019 K.1569 Palladam FarmersService Cooperative Society Ltd.,Presently named asK.1569 Palladam Primary AgriculturalCooperative Credit Society,Rep. by its Secretary,A. Jeyabalan, ...Petitioner in W.P.No.33981 of 2019--Vs-- The Income Tax Officer,Non-Corp Ward-3(2), CBE,No.63, Race Course Road,Coimbatore-641 018...Respondent in WP.No.15 of 2020 The Income Tax Officer,Non-Corp Ward-2(5), CBE,No.63, Race Course Road,Coimbatore-641018Coimbatore District...Respondent in WP.No.33987 of 2019The Income Tax OfficerWard-2(2), TPR, Income Tax office,No.121, 60 Feet Road,Tiruppur-641 602 ...Respondent in WP.No.33981 of 2019 1/4 PRAYER in W.P.No.15 of 2020: PETITION filed under Article 226 ofthe Constitution of India praying for the issuance of Writ ofCertiorari, calling for the entire records relating to theimpugned order passed by the respondent in OrderNo.ITBA/AST/S/144/2019-20/1021398199(1), dated 30.11.2019 andquash the same. PRAYER in W.P.No.33987 of 2019: PETITION filed under Article 226of the Constitution of India praying for the issuance of Writ ofCertiorari, calling for the entire records relating to theimpugned order passed by the respondent in NoticeNo.ITBA/PNL/S/270A/2019-20/1019838428(1), dated 06.11.2019 andquash the same. PRAYER in W.P.No.33981 of 2019: PETITION filed under Article 226of the Constitution of India praying for the issuance of Writ ofCertiorari, calling for the entire records relating to theimpugned order passed by the respondent in OrderNo.ITBA/AST/S/144/2019-20/1018797373(1), dated 11.10.2019 andquash the same. The petitioners in these cases claim to be primaryco-operative societies that challenge orders of assessmentpassed in terms of Section 144 of the Income Tax Act, 1961('Act') assessing their income to the best of the AssessingOfficers' judgment.2. The facts in relation to each of the petitions isidentical except for the demands raised and hence these writpetitions are disposed by way of a common order. 3. The petitioners did not file returns of income inrespect of Assessment Year (AY) 2017-18 and thus notices underSection 142(1) were issued, calling for returns of income to befiled. There was no complaince. A reminder was issued callingfor reasons for non-filing of the returns as well as otherdetails required for completion of assessment, that were alsonot responded to. 4. Details obtained from banks in which the petitioner co-operative societies held accounts, revealed deposit ofdemonitised notes during the period of demonitisation. Showcause notices were issued to, and served upon the petitioners 2/4 https://hcservices.ecourts.gov.in/hcservices/ also eliciting no response. The same fate befell summons andreminders under Section 131 of the Act calling upon thepetitioner to appear and furnish various details. 5. In the light of the non-cooperation on the part of thepetitioners and admitted lack of response to several noticesand communications issued, the respondent Assessing Officerproceeded to complete the assessments ex-parte and to the bestof his judgment bringing to tax the total credit as reflected inthe bank accounts as unexplained money under Section 69 readwith Section 115BBE of the Act. Penalty under Section 271AAC(1)has also been initiated. It is as against the aforesaid ordersthat the present writ petitions have been filed. 2/4 https://hcservices.ecourts.gov.in/hcservices/ also eliciting no response. The same fate befell summons andreminders under Section 131 of the Act calling upon thepetitioner to appear and furnish various details. 5. In the light of the non-cooperation on the part of thepetitioners and admitted lack of response to several noticesand communications issued, the respondent Assessing Officerproceeded to complete the assessments ex-parte and to the bestof his judgment bringing to tax the total credit as reflected inthe bank accounts as unexplained money under Section 69 readwith Section 115BBE of the Act. Penalty under Section 271AAC(1)has also been initiated. It is as against the aforesaid ordersthat the present writ petitions have been filed. 6. The Department has filed a counter stating that impugnedorders of assessment are passed in line with both the provisionsof the Act and the standard operative procedures issued by theCentral Board of Direct Taxes. Moreover, the affidavitaccompanying the writ petition deals solely with the provisionsof Section 80P of the Act, whereas the impugned orders ofassessment do not relate to the provisions of Section 80P atall. Thus, the writ petitions have been filed mechanically andeven without perusing the contents of the impugned orders. 7. Upon a perusal of the impugned orders of assessment, Ifind no merit whatsoever in the challenge before me. As pointedout in counter, the contents of the assessment order and theaverments in writ petition are wholly unconnected as theaddition made in the impugned order is in terms of the Section69A & 115B of the Act and not Section 80P. Also and moreimportantly, the petitioner has not co-operated in the least inthe framing of assessments and has ignored all communicationsand notices issued by the Department. It has not even defrayedits statutory responsibility of filing of a return of income forthe period in question. 8. These writ petitions are dismissed. Liberty is granted,as prayed for, to file appeals before the first appellateauthority within a period of three weeks from today. Connectedmiscellaneous petitions are closed. No costs. Sd/- Assistant Registrar(C.S.VI)/True Copy/ Sub Assistant Registrar 3/4 To The Income Tax Officer,Non-Corp Ward-3(2), CBE,No.63, Race Course Road,Coimbatore-641 018 2. The Income Tax Officer,Non-Corp Ward-2(5), CBE,No.63, Race Course Road,Coimbatore-641018Coimbatore District 3. The Income Tax OfficerWard-2(2), TPR, Income Tax office,No.121, 60 Feet Road,Tiruppur-641 602The Commercial Tax OfficerAnuparpalayam Assessment Circle,Tirupur Copy to : The Section Officer, E.R.Section,Madras High Court, Chennai -104. +2cc to Mr.C.Prakasam, Advocate Sr.Nos.6465 and 6466+2cc to Mr.A.P.Srinivas, Advocate Sr.Nos.6440 and 6443AKM/03.02.2020/4P-9C/ Writ Petition No.15 of 2020, 33987 & 33981 of 2019WMP.No.9 & 10 of 2020, 34574, 34575, 34570, 34571 of 2019 4/4 https://hcservices.ecourts.gov.in/hcservices/