Wp/28871/2019 Of Balkuru Halu Uthpadakara v. Prl Commisioner Of Income Tax

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU| DAITBD THIS THE 1 DAY OF SEPTEMBER, 2019 BEKORE, THR HON’BLE MR. JUSTICE P.B. BAJANTHRI .WRIT PETITION No.28871/2019 (TIT)C/WWRIT PETITION Nos.28872/2019, 29109/2019.,29110/2019, 28873/2019, 29580/2019,29583/2019, 29582/2019, 29584/2019 IN WRIT PETITION NO.28871/2019 BETWEEN: Balkuru Halu Uthpadakara_sahakari Sangha Ltd.,Balkuru Village, Kundapura Taluk,Udupi District —- 576 211. Represented by its C.E.O.,Mr.Yogesh. ...Petitioner. (By Sri. Mahesh R Uppin, Advocate) AND: 1.Prl. Commissioner of Income Tax, Aayakar Bhavan, C.R. Building, N.G. Road, Attavara,Mangaluru — 575 OO1.. 2 |Dy. Commissioner of Income Tax, Centralized Processing Centre, Bengaluru — 560 500. 3.Income Tax Officer, Ward — 2, Aayakar Bhavan,Adi — Udupi Malpe Road,Udupi — 976 103.... Respondents |Adi — Udupi Malpe Road,Udupi — 976 103.... Respondents | (By Sri. Jeevan R Neeralgi, Advocate a/wsri. E.I.Sanmathi, Advocate)sri. E.I.Sanmathi, Advocate) This Writ Petition is filed under Articles 226 and22/7 of the Constitution of India praying to quash theorder dated 10.05.2019 passed by the R-2 marked as|Annexure — “B” and the order dated 17.06.2019 passed|by the R-1 marked as Annexure — “C” by issuing a writ|in the nature of certiorari. IN WRIT PETITION NO.28872/2019 BETWEEN:| Keradi Milk Producers’ Women’sCo-operative Society Ltd.,Keradi Village, Kundapura Taluk,Udupi District — 576 233.Represented by its Secretary,smt. Roopa Shedthi. |_.. Petitioner | (By Sri. Mahesh R Uppin, Advocate) AND: 1.Prl. Commissioner of Income Tax,Aayakar Bhavan,C.R. Building, N.G. Road,Attavara,Mangaluru — 9795 OO1. 2 |Dy. Commissioner of Income Tax, Centralized Processing Centre, Bengaluru — 560 500.| 3.)Income Tax Officer, Ward — 2, Aayakar Bhavan, Adi — Udupi Malpe Road,Udupi — 976 103.... Respondents |Udupi — 976 103.... Respondents | (By Sri. Jeevan R Neeralgi, Advocate a/wsri. E.I.Sanmathi, Advocate)sri. E.I.Sanmathi, Advocate) This Writ Petition is filed under Articles 226 and22/7 of the Constitution of India praying to quash theorder dated 31.05.2019 passed by the R-2 marked as|Annexure — “B” and the order dated 17.06.2019 passed|by the R-1 marked as Annexure — “C” by issuing a writ|in the nature of certiorary. IN WRIT PETITION NO.29109/2019 BETWEEN:| Bidkalkatte Milk Producers’ |Co-operative Society Ltd.,Bidkalkatte, Kundapura Taluk, Udupi District — 576 222.(Represented by its Secretary -|Mr. Ganesha). | ...Petitioner (By Sri. Mahesh R Uppin, Advocate) AND: 1.Prl. Commissioner of Income Tax,Aayakar Bhavan, C.R. Building, N.G. Road,Attavara,Mangaluru — 975 OO1. 2Dy. Commissioner of Income Tax, Centralized Processing Centre, Bengaluru — 560 500. 3.)Income Tax Officer, Ward — 2,Aayakar Bhavan,Aayakar Bhavan, Adi — Udupi Malpe Road,Udupi — 976 103.... Respondents |Udupi — 976 103.... Respondents | (By Sri. Jeevan R Neeralgi, Advocate a/w sri. E.I.Sanmathi, Advocate) This Writ Petition is filed under Articles 226 and22/ of the Constitution of India praying to quash the|order dated 31.05.2019 passed by the R-2 marked as|Annexure — “B” and the order dated 21.06.2019 passed|by the R-1 marked as Annexure — “C”. IN WRIT PETITION NO.29110/2019 BETWEEN: Navanidhi Vividhoddesha |yahakara Sangha Ltd.,Ujjodi, Gorigudde, Mangaluru,D.K. District —575 OO2. |Represented by its C.E.O. Mrs. Prathibha. ..Petitioner| (By Sri. Mahesh R Uppin, Advocate) AND: 1.Prl. Commissioner of Income Tax,Aayakar Bhavan, C.R. Building, N.G. Road,Attavara, Mangaluru — 975 OO1.Attavara, Mangaluru — 975 OO1. 2Dy. Commissioner of Income Tax,Centralized Processing Centre,Bengaluru — 560 500.Centralized Processing Centre,Bengaluru — 560 500. 3.Income Tax Officer, Ward — 2(3), Aayakar Bhavan, Attavara, |Mangaluru — 9795 OO1.... Respondents |Aayakar Bhavan, Attavara, |Mangaluru — 9795 OO1.... Respondents | IN WRIT PETITION NO.29110/2019 BETWEEN: Navanidhi Vividhoddesha |yahakara Sangha Ltd.,Ujjodi, Gorigudde, Mangaluru,D.K. District —575 OO2. |Represented by its C.E.O. Mrs. Prathibha. ..Petitioner| (By Sri. Mahesh R Uppin, Advocate) AND: 1.Prl. Commissioner of Income Tax,Aayakar Bhavan, C.R. Building, N.G. Road,Attavara, Mangaluru — 975 OO1.Attavara, Mangaluru — 975 OO1. 2Dy. Commissioner of Income Tax,Centralized Processing Centre,Bengaluru — 560 500.Centralized Processing Centre,Bengaluru — 560 500. 3.Income Tax Officer, Ward — 2(3), Aayakar Bhavan, Attavara, |Mangaluru — 9795 OO1.... Respondents |Aayakar Bhavan, Attavara, |Mangaluru — 9795 OO1.... Respondents | (By Sri. Jeevan R Neeralgi, Advocate a/wsri. E.I.Sanmathi, Advocate)sri. E.I.Sanmathi, Advocate) This Writ Petition is filed under Articles 226 and22/ of the Constitution of India praying to quash the|order dated 10.05.2019 passed by the R-2 marked as|Annexure — “B” and the order dated 25.06.2019 passed|by the R-1 marked as Annexure — “C”. IN WRIT PETITION NO.28873/2019 BETWEEN:| Thombathu Milk Producers’ |Co-operative Society Ltd.,Thombathu, Hengavalli Village,Kundapura Taluk,Udupi District —- 576 212.(Represented by its Secretary -|sri.Raju Poojary). ...Petitioner (By Sri. Mahesh R Uppin, Advocate) AND: 1.Prl. Commissioner of Income Tax, Aayakar Bhavan,C.R. Building, N.G. Road,Attavara, Mangaluru — 975 OO1. 2Dy. Commissioner of Income Tax, Centralized Processing Centre, Bengaluru — 560 500. 3.)Income Tax Officer, Ward — 2, Aayakar Bhavan, Adi — Udupi Malpe Road,Udupi — 976 103.... Respondents |Udupi — 976 103.... Respondents | (By Sri. Jeevan R Neeralgi, Advocate a/wsri. E.I.Sanmathi, Advocate)sri. E.I.Sanmathi, Advocate) This Writ Petition is filed under Articles 226 and22/ of the Constitution of India praying to quash the|order dated 31.05.2019 passed by the R-2 marked as|Annexure — “B”. IN WRIT PETITION NO.29580/2019 BETWEEN: K.M.Credit Souharda Sahakari Ltd.,K.M.Complex, Main Road,Koteshwara, Kundapura Taluk,Udupi District — 576 222.(Represented by its C.E.O. -Mr. Sudarshana)....Petitioner. (By Sri. Mahesh R Uppin, Advocate) AND: 1.Prl. Commissioner of Income Tax, Aayakar Bhavan,C.R. Building, N.G. Road,Attavara,Mangaluru — 975 OO1. 2Dy. Commissioner of Income Tax, Centralized Processing Centre, Bengaluru — 560 500. 3.)Income Tax Officer, Ward — 2, Aayakar Bhavan, Adi — Udupi Malpe Road,Udupi — 976 103.... Respondents |Udupi — 976 103.... Respondents | (By Sri. Jeevan R Neeralgi, Advocate a/wsri. E.I.Sanmathi, Advocate)sri. E.I.Sanmathi, Advocate) This Writ Petition is filed under Articles 226 and22/ of the Constitution of India praying to quash the|order dated 10.05.2019 passed by the R-2 marked as|Annexure — “B” and the order dated 21.06.2019 passed|by the R-1 marked as Annexure — “C”. IN WRIT PETITION NO.29583/2019 BETWEEN: sasthavu Halu Uthpadakara Mahila|sahakara Sangha Ltd.,sasthavu, Pejamangoor Village,Kokkare Post, Brahmavara Taluk,Udupi District — 576 2.Represented by its Secretary —Mrs. Babi. ...Petitioner. (By Sri. Mahesh R Uppin, Advocate) AND: 1.Prl. Commissioner of Income Tax, Aayakar Bhavan, C.R. Building, N.G. Road,Attavara, Mangaluru — 975 OO1.Attavara, Mangaluru — 975 OO1. 2Dy. Commissioner of Income Tax, Centralized Processing Centre, Bengaluru — 560 500. 3.Income Tax Officer, Ward — 2,Aayakar Bhavan,Aayakar Bhavan, Adi — Udupi Malpe Road,Udupi — 976 103.... Respondents |Udupi — 976 103.... Respondents | (By Sri. Jeevan R Neeralgi, Advocate a/wsri. E.I.Sanmathi, Advocate)sri. E.I.Sanmathi, Advocate) This Writ Petition is filed under Articles 226 and22/7 of the Constitution of India praying to quash theorder dated 12.02.2019 passed by the R-2 marked as|Annexure — “B” and the order dated 21.06.2019 passed|by the R-1 marked as Annexure — “°C”. IN WRIT PETITION NO.29582/2019 BETWEEN: AND: 1.Prl. Commissioner of Income Tax, Aayakar Bhavan, C.R. Building, N.G. Road,Attavara, Mangaluru — 975 OO1.Attavara, Mangaluru — 975 OO1. 2Dy. Commissioner of Income Tax, Centralized Processing Centre, Bengaluru — 560 500. 3.Income Tax Officer, Ward — 2,Aayakar Bhavan,Aayakar Bhavan, Adi — Udupi Malpe Road,Udupi — 976 103.... Respondents |Udupi — 976 103.... Respondents | (By Sri. Jeevan R Neeralgi, Advocate a/wsri. E.I.Sanmathi, Advocate)sri. E.I.Sanmathi, Advocate) This Writ Petition is filed under Articles 226 and22/7 of the Constitution of India praying to quash theorder dated 12.02.2019 passed by the R-2 marked as|Annexure — “B” and the order dated 21.06.2019 passed|by the R-1 marked as Annexure — “°C”. IN WRIT PETITION NO.29582/2019 BETWEEN: Shree Guru Nithyananda SouhardaCredit Co-Operative Ltd.,Navunda, Byndoor,Byndoor Taluk,Udupi District — 5976 224.(Represented by its C.E.O.- |Mrs.Pooja T Poojary)._.. Petitioner | (By Sri. Mahesh R Uppin, Advocate) AND: 1.Prl. Commissioner of Income Tax, Aayakar Bhavan, C.R. Building, N.G. Road,Attavara, Mangaluru — 975 OO1.Attavara, Mangaluru — 975 OO1. 2Dy. Commissioner of Income Tax, Centralized Processing Centre, Bengaluru — 560 500. 3.Income Tax Officer, Ward — 2,Aayakar Bhavan,Aayakar Bhavan, Adi — Udupi Malpe Road,Udupi — 976 103.... Respondents |Udupi — 976 103.... Respondents | (By Sri. Jeevan R Neeralgi, Advocate a/w sri. E.I.Sanmathi, Advocate) This Writ Petition is filed under Articles 226 and22/7 of the Constitution of India praying to quash theorder dated 31.05.2019 passed by the R-2 marked as|Annexure — “B” and the order dated 17.06.2019 passed|by the R-1 marked as Annexure — “°C”. IN WRIT PETITION NO.29584/2019 BETWEEN: Padumundu Milk Producers Women.Co-operative Society Ltd., shiriyara Village, Saibrakatte Post,Brahmavara Taluk,Udupi District — 976 210.) (Represented by its Secretary — Mrs.Chaitra) ... Petitioner (By Sri. Mahesh R Uppin, Advocate) AND: 1.Prl. Commissioner of Income Tax, Aayakar Bhavan, C.R. Building, N.G. Road, Attavara, Mangaluru — 975 OO1. 2 |Dy. Commissioner of Income Tax, Centralized Processing Centre, Bengaluru — 560 500.| 3.Income Tax Officer, Ward — 2,Aayakar Bhavan,Aayakar Bhavan, Adi — Udupi Malpe Road,Udupi — 976 103.... Respondents |Udupi — 976 103.... Respondents | (By Sri. Jeevan R Neeralgi, Advocate a/wsri. E.I.Sanmathi, Advocate)sri. E.I.Sanmathi, Advocate) This Writ Petition is filed under Articles 226 and22/ of the Constitution of India praying to quash the|order dated 25.06.2019 passed by the R-2 marked as|Annexure — “B”. These Writ Petitions coming on for PreliminaryHearing in ‘B’ group, this day, the Court made the|following: COMMON ORDER In the instant petitions, petitioners are seeking a| writ in the nature of certiorari by quashing the respective impugned orders and a writ in the nature of mandamus by directing respondent No.3 for fresh assessment oftheir income tax return filed for the Assessment year2018-19 in accordance with law. 2. The gist of the matters are as under: 13. 3. Learned counsel for the petitioners submittedthat petitioners - assesees had commenced their|respective businesses during the financial year 2017-18(A.Y. 2018-19) and in the first year of filing their|respective income tax returns for the Assessment year|2018 -2019, there was delay in filing the returns for|which reasons have been assigned to condonation of thedelay. However, reasons have not been appreciated by|the authority while rejecting the petitioners’ grievance|relating to seeking deduction under Section 8O (P) of the Income Tax Act, 1961. 4. Learned counsel for the petitioners furthersubmitted that respondent No.3 has not appreciated|the fact that some of the petitioners are Agriculturists,| 2. The gist of the matters are as under: 13. 3. Learned counsel for the petitioners submittedthat petitioners - assesees had commenced their|respective businesses during the financial year 2017-18(A.Y. 2018-19) and in the first year of filing their|respective income tax returns for the Assessment year|2018 -2019, there was delay in filing the returns for|which reasons have been assigned to condonation of thedelay. However, reasons have not been appreciated by|the authority while rejecting the petitioners’ grievance|relating to seeking deduction under Section 8O (P) of the Income Tax Act, 1961. 4. Learned counsel for the petitioners furthersubmitted that respondent No.3 has not appreciated|the fact that some of the petitioners are Agriculturists,| doing Milk business, running Sahakara Sangha and Co-operative societies. They were not aware of filing of|returns in time and through the chartered accountant|they came to know that there is delay in filing their|respective returns. Oo. The learned counsel for the petitioners reliedon the decision of the Division Bench of the Delhi High|Court passed inFibrefill Engineers Vs. CIT"+%4"#+&'((2017) 177 TTJ 556 (Del.)wherein, it has held the)aspect of delay, genuineness and hardship invoking the|provisions of Section 80 AC and deduction under|section 80-IC of the Act, could not come in the way of|extending the benefit of deduction under Section 80OP ofthe Act. | 6. On the other hand, learned counsel for the)respondents resisted the contention of learned counsel|for the petitioners and relied on the decision of this|Court in the case of|Sharavathy Conductors (P.) Ltd. Vs. Chief Commissioner of Income Tax, Bengaluru-2reported in[2017] 87 taxmann.com 244 (Karnataka)at para o, this Court has taken note of the fact that|condonation of delay is rested on the discretionary|power of the authority. Thus, petitioner has not made|out a case so as to interfere with the impugned order. /. Heard the learned counsel for the parties. Theshort question that arise for consideration in the|present petitions is,whether the petitioners are entitledfor condonation of delay in filing their respective returnsbefore the authority to claim deduction under Section 80Pof the Act or not? 8. Undisputed facts are that, petitioners’ Societieswhich has actively commenced only during the financialyear 2017-2018 and the assessment year being 2018-19and for the first time, they have filed returns under|section 139 (4) of the Act. In view of the delay in filing|the return, no doubt Section 80 AC (ii) of the Act is| attracted. As there is delay in filing the returns and at|the same time as the petitioners are agriculturists, whoare also running Milk business, Co-operative Society|and Sahakara Sangha, for the first time they have filed|returns|forthefinancialYCar2017-18,|aftercommencement of their Society in the year 2017-18.Theretore, the authority ought to be liberal in condoningthe delay. As per the guidelines of the Division Bench ofthe Delhi High Court which had invoked various|provisions of the Act, regarding the condonation of delay|with reference to genuine hardship and that apart,|when assessees have come forward to file their'respective returns belatedly, taking note of these facts,|and their promptness in filing the genuine returns,|ought to have considered the same. Having regard to|the principles laid down by the Division Bench of the|Delhi High Court matters require re-examination|relating to provisions relating to Sections 80 P, 80 AC|(ii) and 143 (v) of the Act. Accordingly, the impugned| orders are set aside and the matters are remanded to|respondent No.3 for re-examination of the petitioners|claim with regard to the filing of their respective returnsfor the assessment year 2018-19 and for condonation of|delay in the light of the decision of the Division Bench ofthe Delhi High Court. Further, whether petitioners are|entitled for deduction under Section SOP or not shall|also be considered. This exercise shall be completed|within a period of three months from the date of receipt|of the certified copy of this order. In view of the above facts and circumstances, all|these petitions stands allowed. Sd/-.JUDGE