Wp(C)/29351/2021 Of The Managing Committee Of Ponvila Service Co-Operative Bank Ltd v. Income Tax Officer

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS TUESDAY, THE 21 DAY OF DECEMBER 2021 / 30TH AGRAHAYANA, 1943 WP(C) NO. 29351 OF 2021 PETITIONER: THE MANAGING COMMITTEE OF PONVILA SERVICE CO-OPERATIVE BANK LTD.NO. 985,REPRESENTED BY ITS PRESIDENT, AYIRA P.O., VIA PARASSALA, THIRUVANANTHAPURAM. BY ADVS.P.N.MOHANANC.P.SABARIAMRUTHA SURESH RESPONDENTS: 1INCOME TAX OFFICER,OFFICE OF THE INCOME TAX OFFICER, WARD 2 (1), INCOME TAX DEPARTMENT, THIRUVANANTHAPURAM-695 001.2ASSISTANT DIRECTOR OF INCOME TAX, CENTRALISED PROCESSING CENTRE, BANGALORE-560 500.3THE COMMISSIONER OF INCOME TAX (APPEALS),AAYAKAR BAHVAN, KOWDIAR, THIRUVANANTHAPURAM, PIN-695 003.4THE COMMISSIONER OF INCOME TAX (APPEALS),NATIONAL FACELESS APPEAL CENTRE (NFAC), NORTH BLOCK, DELHI-110 001.5KERALA STATE CO-OPERATIVE BANK LTD., (FORMER THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK),REPRESENTED BY REGIONAL MANAGER, THIRUVANANTHAPURAM-695001. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON21.12.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: BECHU KURIAN THOMAS, J .............................................… W.P.(C) NO.29351 OF 2021 …........................................ Dated this the 21[st] day of December, 2021 JUDGMENT The petitioner challenges Ext.P7 order of theAppellate Authority issued under Section 250 of theIncome Tax Act, 1961. 2. The contentions raised by the petitioner is that ground for rejecting the appeal filed by the petitioner isthat the return filed by the petitioner was belated. Thisreasoning is evident from paragraph 6.2 of the impugnedorder. For the purpose of better comprehensionparagraph 6.2 of Ext.P7 is extracted as below. “As per grounds 3,4 and 5 the appellanthas objected to the disallowance of the claimu/s 80P (2) (a)(i) of the Act. The appellanthas made submissions on the merits of itsclaim as an agricultural credit co-operativesociety. However, from the order of CPC it isseen that the appellant’s claim has beendisallowed on the ground that the return hasbeen filed late. The due date for filing thereturn was 30.09.2019, the extended due date was 31.10.2019 while the appellant hasfiled its return on 19.02.202, which is muchafter the due date.” 3. A perusal of the above extracted portion reveals that, the Appellate Authority proceeded on theassumption that the last date for filing the return for theassessment year 2019-20 was 30/9/2019, which wasextended only upto 31/10/2019, while the appellant filedhis return only on 19/2/2020. According to the AppellateAuthority, the return filed was beyond the due date. 4. The learned counsel for the petitioner invited myattention to Ext.P1 order issued by the CBDT on30/11/2020, extending the time for filing the returns forthe assessment year 2019-2020 uptill 30/11/2020. 5. In view of the aforesaid order issued under Section119 of the Act, it is explicit that the observation of theAppellate Authority extracted earlier is incorrect.Therefore, since the valid return filed by the appellant wasnot considered, the impugned order becomes a non-speaking order and is to regarded as issued in violation of WP(C) NO. 29351 OF 2021 4 the principles of natural justice. Accordingly Ext.P7 orderissued by the CIT appeals dated 14/12/2021 shall standset aside. Appellate Authority is directed to pass freshorders after grating an opportunity of hearing to thepetitioner, as expeditiously as possible, at any rate, withina period of three months from the date of receipt of acopy of this judgment. This writ petition is allowed. Sd/- BECHU KURIAN THOMASJUDGE AJM APPENDIX OF WP(C) 29351/2021 PETITIONER’S EXHIBITS: Exhibit P1A TRUE COPY OF THE ORDER F.NO.225/150/2020/ITA 2 DATED F.NO.225/150/2020/ITA 2 DATED 30.09.2020 OF THE UNDER SECRETARY, GOVERNMENT OF INDIA. GOVERNMENT OF INDIA. WP(C) NO. 29351 OF 2021 4 the principles of natural justice. Accordingly Ext.P7 orderissued by the CIT appeals dated 14/12/2021 shall standset aside. Appellate Authority is directed to pass freshorders after grating an opportunity of hearing to thepetitioner, as expeditiously as possible, at any rate, withina period of three months from the date of receipt of acopy of this judgment. This writ petition is allowed. Sd/- BECHU KURIAN THOMASJUDGE AJM APPENDIX OF WP(C) 29351/2021 PETITIONER’S EXHIBITS: Exhibit P1A TRUE COPY OF THE ORDER F.NO.225/150/2020/ITA 2 DATED F.NO.225/150/2020/ITA 2 DATED 30.09.2020 OF THE UNDER SECRETARY, GOVERNMENT OF INDIA. GOVERNMENT OF INDIA. Exhibit P2A TRUE COPY OF THE NOTIFICATION OF EXTENSION OF INCOME TAX RETURN FILING DEAD LINE OF FINANCIAL YEAR 2018-2019.EXTENSION OF INCOME TAX RETURN FILING DEAD LINE OF FINANCIAL YEAR 2018-2019. Exhibit P3A TRUE COPY OF THE INCOME TAX RETURN OFTHE YEAR 2019-2020 ALONG WITH ACKNOWLEDGEMENT SUBMITTED DATED THE YEAR 2019-2020 ALONG WITH ACKNOWLEDGEMENT SUBMITTED DATED 19.02.2020. Exhibit P4A TRUE COPY OF THE ORDER DATED 01.05.2002 OF THE SECOND RESPONDENT. 01.05.2002 OF THE SECOND RESPONDENT. Exhibit P5A TRUE COPY OF THE APPEAL DATED 11.05.2020 ALONG WITH THE ACKNOWLEDGEMENT RECEIPT.11.05.2020 ALONG WITH THE ACKNOWLEDGEMENT RECEIPT. Exhibit P6A TRUE COPY OF THE HEARING NOTE DATED 17.11.2021 SUBMITTED BEFORE THE FOURTH RESPONDENT.17.11.2021 SUBMITTED BEFORE THE FOURTH RESPONDENT. Exhibit P7A TRUE COPY OF THE ORDER DATED 14.12.2021 OF THE FOURTH RESPONDENT. 14.12.2021 OF THE FOURTH RESPONDENT. Exhibit P8A TRUE COPY OF THE JUDGMENT AS REPORTEDIN 2021(1) KHC 303.IN 2021(1) KHC 303. Exhibit P9A TRUE COPY OF THE ORDER DATED 12.12.2021 OF THE FIRST RESPONDENT.12.12.2021 OF THE FIRST RESPONDENT. RESPONDENT’S EXHIBITS: NIL AJM //TRUE COPY// PA TO JUDGE