Wp(C)/42670/2022 Of The Enadimangalam Service Co-Operative Bank Ltd v. Additional/Joint/Deputy/Asst. Commissioner Of Income Tax/Income Tax Officer

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. TUESDAY, THE 3 DAY OF JANUARY 2023 / 13TH POUSHA, 1944 WP(C) NO. 42670 OF 2022 PETITIONER: 1THE ENADIMANGALAM SERVICE CO-OPERATIVE BANK LTD. NO. 2151, AGED 45 YEARSVI/3, ELAMANNOOR P.O. PATHANAMTHITTA, , PIN - 691524REPRESENTED BY ITS SECRETARYBY ADV O.D.SIVADAS RESPONDENTS: 1ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, THE ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, NEW DELHI, PIN - 1100012THE INCOME TAX OFFICER WARD (4), KOLLAM, PIN - 691001BY ADV.CHRISTOPHER ABRAHAM, STANDING COUNSELJOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: JUDGMENT Dated this the 03[rd] day of January, 2023 The petitioner has approached this Courtchallenging Ext.P4 order of assessment under theIncome Tax Act, 1961 for the assessment year 2020-21. It is the case of the petitioner that through theimpugned order of assessment, the benefits availableto the petitioner under Section 80P of the Income TaxAct, 1961 has been practically denied. It is submittedthat the issue stands covered in favour of thepetitioner by judgments of the Hon'ble SupremeCourt and therefore, notwithstanding the availabilityof alternative remedy, the petitioner is entitled tochallenge the assessment order in a writ petitionunder Article 226 of the Constitution of India. 2. Learned counsel appearing for the respondentDepartment submits that there are no extra ordinarycircumstances which would require this Court toexamine the questions raised in a writ petition under Article 226 of the Constitution of India. It is submittedthat a reading of the assessment order itself showsthat the benefit of Section 80P of the Income Tax Acthas been extended to the petitioner. The denial is inrespect of certain interest income of the petitionerwhich, according to the Department, does notqualified for exemption under the provisions ofSection 80P. It is submitted that this is a matter thatcannot be examined in a proceeding under Article 226of the Constitution of India and the petitioner may berequired to avail the remedy of appeal before the FirstAppellate Authority. He also states that if the appealis filed within a period of two weeks from today alongwith an application for condonation of delay, the delaywould be condoned and the appeal would beconsidered on merits. Having heard the learned counsel for thepetitioner and the learned counsel appearing for therespondent Department, this writ petition will stand WPC No.42670 of 2022 disposed of directing that if the petitioner files astatutory appeal against Ext.P4 order of assessmentwithin a period of two weeks from today along withapplication for condonation of delay, the FirstAppellate Authority shall condone the delay in filingthe appeal and shall consider the appeal on merits.Taking into consideration the fact that several othercases involving the question as to whether the benefitof Section 80P of the Income Tax Act has to beextended to similar assessees, this Court has directedstay of demand pursuant to assessment order, it isdirected that any demand pursuant to Ext.P4 order ofassessment shall be kept in abeyance till a decision istaken on the stay application to be filed by thepetitioner along with the appeal. Sd/- GOPINATH P.JUDGE WPC No.42670 of 2022 APPENDIX OF WP(C) 42670/2022 PETITIONER’S EXHIBITS: Sd/- GOPINATH P.JUDGE WPC No.42670 of 2022 APPENDIX OF WP(C) 42670/2022 PETITIONER’S EXHIBITS: EXHIBIT P1TRUE COPY OF THE REPLY DATED 24.11.2022 SUBMITTED BY THE PETITIONER THE 1ST RESPONDENT.EXHIBIT P2TRUE COPY OF THE DETAILS OF DEPOSITS OF THE PETITIONER WITH CO-OPERATIVE BANK. FOR THE ASSESSMENT YEAR 2020-21 DATED 17/4/2020EXHIBIT P3TRUE COPY OF THE DETAILS OF DEPOSITS OF THE PETITIONER WITH TREASURY FOR THE ASSESSMENT YEAR 2020-21.EXHIBIT P4-. TRUE COPY OF THE ASSESSMENT ORDER DATED 24.09.2022 ISSUED BY THE 1ST RESPONDENT FOR THEASSESSMENT YEAR 2020-21. EXHIBIT P5TRUE COPY OF THE NOTICE DATED 24.09.2022 ISSUEDBY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2020-21. RESPONDENTS' EXHIBITS:NIL TRUE COPY P.A. TO JUDGE