Wp(C)/10783/2024 Of The Chirayinkeezhu Service Co-Operative Bank Ltd v. Assessment Unit, Income Tax Department National Faceless Assessment Centre

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 15 DAY OF MARCH 2024 / 25TH PHALGUNA, 1945 WP(C) NO. 10783 OF 2024 PETITIONER/S: THE CHIRAYINKEEZHU SERVICE CO-OPERATIVE BANK LTD. NO.1155REPRESENTED BY ITS SECRETARY-IN-CHARGE,CHIRAYINKEEZHU P.O, THIRUVANANTHAPURAM DISTRICT., PIN - 695304 BY ADVS.ARJUN RAGHAVANT.R.HARIKUMARPOOJA PANKAJ RESPONDENT/S: 1ASSESSMENT UNIT, INCOME TAX DEPARTMENT NATIONAL FACELESS ASSESSMENT CENTRE,FACELESS ASSESSMENT CENTRE, DELHI, ROOM NO 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI., PIN - 110003 2THE INCOME TAX OFFICER, WARD-2 (5) OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX, RANGE-2, AAYAKAR BHAVAN, KOWDIAR P.O, THIRUVANANTHAPURAM DISTRICT., PIN - 695003THIRUVANANTHAPURAM DISTRICT., PIN - 695003 3THE COMMISSIONER OF INCOME TAX (APPEALS)NATIONAL FACELESS APPEAL CENTRE, NORTH BLOCK, DELHI., PIN - 110001NATIONAL FACELESS APPEAL CENTRE, NORTH BLOCK, DELHI., PIN - 110001 SRI. P G JAYASHANKAR (SR SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON15.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 10783 OF 2024 2 JUDGMENT Petitioner is a Primary Agricultural Credit Societyregistered under the Kerala Co-operative Societies Act, 1969.Assessment was completed against the petitioner under theprovisions of Section 143 (3) of the Income Tax Act, 1961. Inthe assessment order, petitioner's claim for deduction underSection 80P was rejected on the ground that there was noevidence to show that the petitioner satisfied the ingredients ofthe Primary Agricultural Credit Society as contemplated underthe Kerala Co-operative Societies Act. Thereafter, penaltyproceedings were initiated and Ext.P2 penalty order along witha demand notice was also issued on 28.03.2023. The only reliefsought for is a stay of recovery of penalty pendingconsideration of Ext.P5 stay petition in Ext.P4 appeal, by theAppellate Authority. 2. Heard Sri. P G. Jaya Shankar, the learned StandingCounsel appearing for the Income Tax Department also. 3.Since the petitioner has preferred Ext.P4 appealalong with Ext.P5 stay petition before the 3[rd] respondentagainst Ext.P2, this writ petition will stand disposed of,directing the 3[rd] respondent to consider and pass orders on WP(C) NO. 10783 OF 2024 3 Ext.P5, after affording an opportunity of hearing to thepetitioner. Till such time as orders are passed on Ext.P5,recovery of any amount pursuant to Ext.P2 shall remain stayed. The writ petition is disposed of as above. Sd/- GOPINATH P.JUDGE APPENDIX OF WP(C) 10783/2024 PETITIONER EXHIBITSExhibit-P1 Exhibit-P2 Exhibit-P3 Exhibit-P4 Exhibit-P5 Exhibit-P6 Exhibit-P7 Exhibit-P8 A TRUE COPY OF THE DEMAND NOTICE DATED 14-07-2022 ISSUED BY THE 1ST RESPONDENT A TRUE COPY OF THE PENALTY ORDER ALONG WITHDEMAND NOTICE DATED 28-03-2023 ISSUED BY THE1ST RESPONDENT A TRUE COPY OF THE COMPUTATION SHEET DATED28-03-2023 A TRUE COPY OF THE ONLINE APPEAL DATED 13-03-2024 FILED BEFORE THE 3RD RESPONDENT, AGAINSTEXT-P2 PENALTY ORDER A TRUE COPY OF STAY PETITION ALONG WITHACKNOWLEDGMENT DATED 13-03-2024 PREFERRED BYTHE PETITIONER IN EXT-P4 APPEAL A TRUE COPY OF THE NOTICE DATED 28-11-2023ISSUED BY THE 2ND RESPONDENT A TRUE COPY OF THE JUDGMENT DATED 08-07-2019IN WP(C) NO.18484 OF 2019A TRUE COPY OF THE JUDGMENT DATED 24-02-2020IN WP(C) NO.5205 OF 2020