THE MUVATTUPUZHA AGRICULTURAL CO-OPERATIVE BANK LTD vs. THE INCOME TAX OFFICER

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WP(C)/17739/2024HC KeralaKLHC01105969202421 May 2024Bench: HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala disposed of the writ petition based on the submission made by the learned Standing Counsel for the Income Tax Department. The Court directed the petitioner to file their return of income before 29.06.2024. If the petitioner files their return of income within the stipulated period, the assessing authority is directed to consider the same in accordance with law. The Court did not decide on the eligibility of the petitioner for deduction under Section 80P(2)(a)(i) and 80P(2)(d) or the validity of the impugned orders on merits. The operative direction is for the petitioner to file the return and for the assessing authority to consider it.

What were the facts?

The petitioner, The Muvattupuzha Agricultural Co-operative Bank Ltd., filed a writ petition challenging Ext.P3 order under Section 148A(d) and Ext.P4 notice under Section 148 of the Income Tax Act, 1961. These orders directed the petitioner to file Income Tax Returns for Assessment Year (AY) 2020-2021. The petitioner contended that it is eligible for deduction under Section 80P(2)(a)(i) and 80P(2)(d) of the Act and that denial of this deduction would result in a significant financial liability. The respondents are the Income Tax Officer, Ward 1 & TPS, Thodupuzha, and the Income Tax Officer (NFAC), National Faceless Assessment Centre.

What were the issues?

1. Whether the petitioner is eligible for deduction under Section 80P(2)(a)(i) and 80P(2)(d) of the Income Tax Act, 1961, for AY 2020-2021, and if so, whether the impugned orders under Section 148A(d) and Section 148 are liable to be quashed on this ground. Assessee's Contention: The petitioner argues that it is eligible for deduction under Section 80P(2)(a)(i) and 80P(2)(d) of the Income Tax Act. If this deduction is denied, the petitioner will face a substantial financial burden. Revenue's Contention: The learned Standing Counsel for the Income Tax Department submitted that the period for filing the return of income would expire only on 29.06.2024. They stated that if the petitioner files their return before this date, the assessing authority would consider it in accordance with the law.

Which sections of the Income-tax Act were involved?

Section 80P,Section 148A,Section 148

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN TUESDAY, THE 21ST DAY OF MAY 2024 / 31ST VAISAKHA, 1946 WP(C) NO. 17739 OF 2024 PETITIONER: THE MUVATTUPUZHA AGRICULTURAL CO-OPERATIVE BANK LTD NO.H.W. 935,MARKET P.O, VELLOORKUNNAM, MUVATTUPUZHA ERNAKULAM DISTRICT, REPRESENTED BY ITS SECRETARY, PIN – 686 673. BY ADV C.A.JOJO RESPONDENTS: 1 THE INCOME TAX OFFICER WARD 1 & TPS, THODUPUZHA, TEMPLE ROAD, THODUPUZHA, IDUKKI,, PIN – 685 584. 2 INCOME TAX OFFICER (NFAC) NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI, PIN – 110 001. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.05.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 17739 OF 2024 : 2 : JUDGMENT

The petitioner, a Co-operative society has filed this writ petition challenging Exts.P3 order under Section 148 A (d) and Ext.P4 notice Section 148, directing to the petitioner to file Income Tax Returns for the AY 2020- 2021. According to the petitioner, the petitioner is eligible for deduction under Section 80P(2)(a)(i) and 80P(2)(d) of the Income Tax Act and if the deduction under Section 80 P of Income Tax Act is denied, the petitioner will face huge financial liability. 2. Adv.Jose Joseph, the learned Standing Counsel for the Income Tax Department submits that the period to file Returns will expire only on 29.06.2024, and that, if the petitioner files return of their income before the

WP(C) NO. 17739 OF 2024 : 3 : said period, the assessing authority will consider the same in accordance with law. Considering the submission made by the learned Standing Counsel for the Income Tax Department, this Writ Petition is disposed of, with direction to the petitioner to file the return of their income before 29.06.2024. If the petitioner files their return of income within the said period, the assessing authority shall consider the same in accordance with law. Sd/- MURALI PURUSHOTHAMAN JUDGE SRJ

WP(C) NO. 17739 OF 2024 : 4 : APPENDIX OF WP(C) 17739/2024 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE NOTICE U/S 148A(B) ISSUED BY THE 1ST RESPONDENT DATED 10.03.2024. Exhibit P2 A TRUE COPY OF THE REPLY DATED 18.03.2024 SUBMITTED TO THE 1ST RESPONDENT. Exhibit P3 A TRUE COPY OF THE ORDER U/S 148A(D) DATED 29.03.2024 ISSUED BY THE 1ST RESPONDENT. Exhibit P4 A TRUE COPY OF THE ORDER U/S 148 DATED 30.03.2024 ISSUED BY THE 1ST RESPONDENT. Exhibit P5 A TRUE COPY OF THE JUDGMENT IN WP (C ) NO.15059 OF 2023 DATED 08.09.2023

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