The Enadimangalam Service Co-operative Bank Ltd. No. 2151, vs. ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER,

WP(C)/42670/2022HC KeralaKLHC01092519202203 January 2023Author: HONOURABLE MR. JUSTICE GOPINATH P.5 pages
AI SummaryRemanded

What were the facts?

The petitioner, The Enadimangalath Service Co-operative Bank Ltd., filed a writ petition challenging an assessment order for the assessment year 2020-21. The petitioner contended that the assessment order, Ext.P4, denied them the benefits available under Section 80P of the Income Tax Act, 1961, a benefit they claimed was affirmed by Supreme Court judgments. The respondent Department argued that the writ petition was not maintainable, as the assessment order itself indicated that the benefit of Section 80P was extended, with the dispute pertaining only to certain interest income not qualifying for exemption. The Department asserted that this was a matter for the appellate authority.

What did the High Court hold?

The High Court disposed of the writ petition by directing the petitioner to file a statutory appeal against the assessment order within two weeks, along with an application for condonation of delay. The Court further directed the First Appellate Authority to condone the delay and consider the appeal on its merits. Recognizing that similar cases involving Section 80P benefits are pending, the Court ordered that any demand arising from the assessment order be kept in abeyance until a decision is taken on the petitioner's stay application, which is to be filed along with the appeal. The Court did not decide the merits of the Section 80P claim itself.

What were the issues?

1. Whether the High Court should entertain a writ petition under Article 226 of the Constitution of India challenging an assessment order where the petitioner claims denial of benefits under Section 80P of the Income Tax Act, 1961, despite the availability of an alternative remedy of appeal. Assessee's Contention: The petitioner argued that the issue is covered by Supreme Court judgments in their favour, justifying the invocation of writ jurisdiction under Article 226 despite the alternative remedy. Revenue's Contention: The respondent Department argued that there were no extraordinary circumstances warranting writ jurisdiction. They contended that the assessment order extended the benefit of Section 80P, and the dispute was limited to specific interest income, which is a matter to be decided by the First Appellate Authority.

Which sections of the Income-tax Act were involved?

Section 80P

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. TUE AY, THE 3RD DAY OF JANUARY 2023 / 13TH POUSHA, 1944 WP(C) NO. 42670 OF 2022 PETITIONER: 1 THE ENADIMANGALAM SERVICE CO-OPERATIVE BANK LTD. NO. 2151, AGED 45 YEARS VI/3, ELAMANNOOR P.O. PATHANAMTHITTA, , PIN - 691524 REPRESENTED BY ITS SECRETARY BY ADV O.D.SIVADAS RESPONDENTS: 1 ADDITIONAL/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 - 110001 2 THE INCOME TAX OFFICER WARD (4), KOLLAM, PIN - 691001 BY ADV.CHRISTOPHER ABRAHAM, STANDING COUNSEL JOSE 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:

WPC No.42670 of 2022 2 JUDGMENT Dated this the 03rd day of January, 2023 The petitioner has approached this Court challenging Ext.P4 order of assessment under the Income Tax Act, 1961 for the assessment year 2020-

21.

It is the case of the petitioner that through the impugned order of assessment, the benefits

The order continues below.

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