TDGSM CO-OPERATIVE SOCIETY LTD NO.R.1112, vs. THE COMMISSIONER OF INCOME TAX,

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WP(C)/29487/2022HC KeralaKLHC01062615202205 December 2023Author: HONOURABLE MR. JUSTICE D. K. SINGH4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the writ petition. The Court found no ground to entertain the petition against the impugned assessment order. The primary reason for dismissal was the petitioner's failure to respond to statutory notices issued under Section 142(1) and their lack of cooperation with the assessment proceedings. The Court rejected the petitioner's contention of non-receipt of notice, citing the established system for communication of notices and orders. The Court held that the petitioner's argument was not acceptable in view of the system in place. The Court left it open to the petitioner to avail the remedy of appeal or other available remedies and directed that if the petitioner approaches the appellate authority, the appeal should be decided expeditiously in accordance with law.

What were the facts?

The petitioner, TDGSM Co-operative Society Ltd, is challenging an assessment order and demand (Ext.P2). The assessee failed to file returns for assessment year 2016-2017. Information from the AIMS module indicated significant cash deposits during financial years 2015-2016 and 2016-2017, leading to the reopening of the assessment under Section 148 of the Income Tax Act, 1961. The assessee filed a return on April 29, 2021, declaring 'Nil' income after claiming a deduction of Rs. 2,64,133/- under Chapter VIA (80P). Subsequently, notices under Section 142(1) were issued on July 8, 2021, November 18, 2021, and February 24, 2022. The assessee did not respond to these notices or cooperate with the proceedings. Consequently, a best judgment assessment order under Section 144 was passed ex-parte due to the failure to file a return in response to the Section 148 notice.

What were the issues?

1. Whether the writ petition is maintainable against the impugned assessment order and demand, considering the petitioner's failure to respond to statutory notices and cooperate with assessment proceedings. Assessee's contention: The petitioner argued that they did not receive the notice. Revenue's contention: The revenue did not explicitly record any contentions in the judgment. However, the Court's reasoning implicitly rejects the assessee's claim based on the established system for communication of notices and orders.

Which sections of the Income-tax Act were involved?

Section 148,Section 142(1),Section 144

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH TUESDAY, THE 5TH DAY OF DECEMBER 2023 / 14TH AGRAHAYANA, 1945 WP(C) NO. 29487 OF 2022 PETITIONER/S: TDGSM CO-OPERATIVE SOCIETY LTD NO.R.1112, PARAKKOTT LANE, PATTURAIKKAL, THIRUVAMBADY, THRISSUR REPRESENTED BY ITS SECRETARY JAINY JACOB, PIN - 680022 BY ADVS. V.P.NARAYANAN ALAN PRIYADARSHI DEV RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX, DCIT CIRCLE 1 (1) & TPS , AAYKAR BHAVAN , INCOME TAX OFFICE, SAKTHAN THAMPURAN NAGAR , THRISSUR, PIN - 680001 2 THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOMETAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO 401, 2ND FLOOR, E-RAMP, JAWAHARLAL STADIUM, DELHI, PIN - 110003 BY ADVS. ADV. P.G. JAYASHANKAR PGJ KEERTHIVAS GIRI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 29487 OF 2022 2 JUDGMENT Dated this the 5th day of December, 2023 1.The present writ petition has been filed impugning Ext.P2 assessment order and demand. 2.The petitioner assessee did not file the returns of the assessment year 2016-2017. As per the information received through Multi-layer NMS cases in AIMS module of ITBA, the petitioner case was selected noticing the huge cash deposit during the financial year 2015-2016 and 2016-2017. The assessment of the petitioner case was reopened by issuance of notice under Section 148 of the Income Tax 1961 ( the ‘IT Act’ for short). In response to the said notice, the petitioner had filed return of income for the assessment year 2016-2017 on 29.04.2021, declaring total income at ‘Nil’ after claiming deduction under Chapter VIA (80P) of Rs. 2,64,133/-. Subsequently, the petitioner was issued notices under Section 142(1) of the IT Act dated 08.07.2021 and 18.11.2021. However, the petitioner failed to respond with the notices. Finally one more opportunity by the notice under Section 142(1) of the Act was given to the petitioner on 24.02.2022. The petitioner did not avail of the opportunities of being heard, and the petitioner did not cooperate with the proceedings. Therefore, keeping in view of the time limit to complete the assessment, the best judgment WP(C) NO. 29487 OF 2022 3 assessment order was passed under Section 144 of the IT Act exparte, the petitioner did not submit the return in response to the notice under Section under Section 148 of the IT Act. 3.Learned counsel for the petitioner submits that the petitioner did not receive the notice. However, this contention cannot be accepted in view of the system which has been placed for communication of notices , orders etc., therefore I do not find any ground to entertain this writ petition against the impugned

assessment order. In the result, this writ petition is dismissed, leaving it open to the petitioner to avail remedy of appeal if any, or such other remedies are available. If the petitioner approached the appellate, the appellate authority should proceed to decide the appeal in accordance with law, expeditiously. DINESH KUMAR SINGH JUDGE SJ

WP(C) NO. 29487 OF 2022 4 APPENDIX OF WP(C) 29487/2022 PETITIONER EXHIBITS Exhibit P1OF CERTIFICATE OF REGISTRATION OF THE SOCIETY BY JOINT REGISTRAR OF CO-OP SOCIETIES (GENERAL) THRISSUR Exhibit P2OF ASSESSMENT ORDER DATED 25.3.2022 FOR AY 2016-17 Exhibit P3OF NOTICE DATED 10.8.2022ISSUED BY THE 1ST RESPONDENT Exhibit P3(a)OF REPLY TO NOTICE DT 10.8.2022 UNDER SECTION 274 READ WITH SECTION 271(1) (B) DATED 18.08.2022 Exhibit P4OF NOTICE UNDER SECTION 274 READ WITH SECTION 271(1)(C) DATED 10-08-2022 Exhibit P4(a)OF REPLY TO NOTICE DATED 10-08- 2022 UNDER SECTION 274 READ WITH SECTION 271(1)(C) DATED 18-08-2022 Exhibit P5OF NOTICE DATED 10-08-2022 UNDER SECTION 274 READ WITH SECTION 271B Exhibit P5(a)OF REPLYDT 18-08-2022 TO NOTICE DATED 10-08-2022 UNDER SECTION 274 READ WITH SECTION 271B SECTION Exhibit P6OF NOTICE DATED 10-08-2022 UNDER SECTION 274 READ WITH SECTION 271F Exhibit P6(a)OF REPLY DATED 18-08-2022 TO NOTICE UNDER SECTION 274 READ WITH SECTION 271F DATED 10-08-2022

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