ALLEPPY NORTH SERVICE CO-OPERATIE BANK LIMITED vs. THE JOINT DIRECTOR OF INCOME TAX

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ITA/50/2020HC KeralaKLHC01010260202023 September 2020Author: HONOURABLE MR.JUSTICE K.VINOD CHANDRAN,HONOURABLE MR. JUSTICE T.R.RAVI3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the Income Tax Officer has the jurisdiction to proceed under the second proviso of Section 133(6) of the Income Tax Act without the authorization of the Director or the Commissioner. The Court arrived at this decision by respectfully following the judgment of the Hon'ble Supreme Court in Kathiroor Service Cooperative Bank Limited V. Commissioner of Income Tax (Cib) and Others, 2014 (14) SCC 352. The ratio decidendi is that the Supreme Court's interpretation of the said provision settles the issue. Consequently, the appeal filed by the assessee was dismissed. No issue was expressly left undecided.

What were the facts?

The assessee, Alleppey North Service Co-operative Bank Limited, filed an appeal before the High Court of Kerala. The appeal was against an order passed by the Income Tax Appellate Tribunal, Cochin Bench, in ITA 458/COCH/2019. The respondents were the Joint Director of Income Tax and the Commissioner of Income Tax (Appeals). The core of the dispute revolved around the jurisdiction of the Income Tax Officer to proceed under the second proviso of Section 133(6) of the Income Tax Act without the authorization of the Director or Commissioner. The High Court considered a Supreme Court decision on this matter.

What were the issues?

1. Whether the Income Tax Officer has the jurisdiction to proceed under the second proviso of Section 133(6) of the Income Tax Act without the authorization of the Director or the Commissioner. (Question of law) Assessee's Contention: The judgment does not record any specific contentions made by the assessee before the High Court. It only states that the question was answered against the assessee. Revenue's Contention: The revenue's position, as reflected in the judgment, is that the Income Tax Officer does have the jurisdiction to proceed under the second proviso of Section 133(6) of the Income Tax Act without prior authorization from the Director or Commissioner. The revenue relies on the Supreme Court decision in Kathiroor Service Cooperative Bank Limited V. Commissioner of Income Tax (Cib) and Others.

Which sections of the Income-tax Act were involved?

Section 133(6)

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 K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE T.R.RAVI WEDNESDAY, THE 23RD DAY OF SEPTEMBER 2020 / 1ST ASWINA, 1942 ITA.No.50 OF 2020 AGAINST THE ORDER/JUDGMENT IN ITA 458/COCH/2019 OF I.T.A. TRIBUNAL, COCHIN BENCH APPELLANT/APPELLANT: ALLEPPEY NORTH SERVICE CO-OPERATIVE BANK LIMITED NO.896, AVLOOKUNNU P.O, ALAPUZHA DISTRICT, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENTS/RESPONDENTS: 1 THE JOINT DIRECTOR OF INCOME TAX (I&CI) KOCHI, PIN 682 018 2 THE COMMISSIONER OF INCOME TAX (APPEALS)-1, AAYAKAR BHAVAN, KOCHI, PIN 682 018 3 THE INCOME TAX APPELLATE TRIBUNAL, KOCHI PIN 682 037 SRI.JOSE JOSEPH, SC, IT THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 23.09.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA.No.50 OF 2020 2

JUDGMENT Vinod Chandran, J. The question as to whether the Income Tax Officer has jurisdiction to proceed under second proviso of Section 133(6) of the Income Tax Act without authorisation of the Director or the Commissioner as the case may be, was answered against the assessee and in favour of the Department by the Hon'ble Supreme Court in Kathiroor Service Cooperative Bank Limited V. Commissioner of Income Tax (Cib) and Others 2014 (14) SCC 352. Respectfully following the aforesaid decision, we dismiss the appeal. K.VINOD CHANDRAN JUDGE T.R.RAVI JUDGE Pn 23/09

ITA.No.50 OF 2020 3 APPENDIX PETITIONER'S/S EXHIBITS: ANNEXURE A1 AOF THE ORDER DATED 23-09-2015 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 272A (2)(C) OF INCOME TAX ACT. ANNEXURE A2 AOF THE ORDER DATED DATED 20.02.2019 IN ITA NO. 81/ITG/EKM/(CIT(A) ANNEXURE A3 AOF OF THE ORDER OF THE INCOME TAX APPELLATE TRIBUNAL IN ITA NO. 458/COCH/2019 DATED 19-08-2020

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