THE PULIYOOR SERVICE CO-OPERATIVE BANK LTD NO A109, REPRESENTED BY ITS SECRETARY vs. THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, KERALA REGION

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WP(C)/39941/2023HC KeralaKLHC01089745202305 December 2023Bench: HONOURABLE MR. JUSTICE D. K. SINGH5 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the writ petition, finding no grounds to interfere. The Court noted that the petitioner still had nine days left to file a response to the show cause notice dated October 31, 2023, which was issued under Section 144 of the Income Tax Act, 1961. The Court held that there was no error of jurisdiction or violation of the principles of natural justice. The reasoning was based on the procedural stage of the proceedings, where the assessee had not yet exhausted their opportunity to respond to the final show cause notice. Therefore, the High Court declined to intervene at that juncture. No specific issue was expressly left undecided.

What were the facts?

The petitioner, The Puli yoor Service Co-operative Bank Ltd, filed a writ petition challenging an order under Section 148A(d) and a show cause notice under Section 144 of the Income Tax Act, 1961. The assessment year in question is 2015-16. The petitioner had not filed a return of income for this year. The case was selected under a risk management strategy, indicating income had escaped assessment. A notice under Section 148 was issued on April 7, 2022. The petitioner did not respond. Following an opportunity for hearing, an order under Section 148A(d) was passed on April 6, 2022. Despite subsequent notices, the petitioner failed to respond. The impugned show cause notice under Section 144 was issued on October 31, 2023, with a response deadline of December 14, 2023.

What were the issues?

1. Whether the High Court should interfere with the proceedings initiated under the Income Tax Act, 1961, when the petitioner still has time to respond to the show cause notice. Assessee's Contention: The judgment does not record any specific contentions made by the petitioner. However, the filing of the writ petition implies a challenge to the notices and orders issued by the revenue. Revenue's Contention: The revenue initiated proceedings under Sections 147, 148, 148A, and 144 of the Income Tax Act, 1961, due to the petitioner's failure to file a return of income and the belief that income had escaped assessment. The revenue issued notices and orders in accordance with the statutory provisions.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 148A,Section 148A(d),Section 144

AI-generated summary — verify with the full judgment below

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. 39941 OF 2023 PETITIONER: THE PULIYOOR SERVICE CO-OPERATIVE BANK LTD NO A109, REPRESENTED BY ITS SECRETARY PERISSERY P.O, CHENGANNOOR, ALAPPUZHA, PIN – 689126 BY ADVS. DIPU.R P.V.SARITHA VENUGOPAL K.S.BAIJU DEVI KRIPA R. DHANYA BABU NEETHU SASI ANSU SARA MATHEW RESPONDENTS: 1 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, KERALA REGION MINISTRY OF FINANCE, GOVERNMENT OF INDIA, CENTRAL REVENUE BUILDING, IS PRESS ROAD, KOCHI, PIN – 682018 2 THE CENTRAL BOARD OF DIRECT TAXES [CBDT], REPRESENTED BY THE CHAIRMAN DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI, PIN – 110001 3 THE NATIONAL FACELESS ASSESSMENT CENTRE [NFAC], REPRESENTED BY PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI, PIN – 110001

W.P.(C.) No.39941/2023 2 4 INCOME TAX OFFICER AYYANKAR BHAVAN, INCOME TAX OFFICE, [WARD 2], BEACH ROAD, ALAPPUZHA, PIN – 688001 5 STATE OF KERALA, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF CO-OPERATION SECRETARIAT, THIRUVANANTHAPURAM, PIN – 695001 6 THE REGISTRAR OF CO-OPERATIVE SOCIETIES, KERALA JAWAHAR SAHAKARNA BHAVAN, DPI JUNCTION, THYCAUD P.O, THIRUVANANTHAPURAM, PIN – 695014 7 JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES [GENERAL], ALAPPUZHA OFFICE OF THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, MULLACKAL, ALAPPUZHA, PIN – 688011 R1 TO R4 BY JOSE JOSEPH, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

W.P.(C.) No.39941/2023 3 JUDGMENT The present writ petition filed under Article 226 of the Constitution of India has been filed impugning Exts.P2 order and P5 show cause notice under Sections 148A(d) and 144 of the Income Tax Act, 1961 (for short, the 'I.T.Act') respectively. The petitioner did not file return of its income for the assessment year 2015-16. The petitioner's case was selected in accordance with the risk management strategy formulated in this regard, as in the opinion of the authorities, the income of the petitioner has escaped assessment within the meaning of Section 147 of the I.T.Act. The petitioner was issued notice under Section 148 of the I.T.Act, on 07.04.2022 in Ext.P1. The petitioner did not respond to the said show cause notice and after giving an opportunity of hearing to the petitioner, the Ext.P2 order under clause(d) of Section 148A of the I.T.Act came to be passed on 06.04.2022. After the said order, various notices were issued to the petitioner, but the petitioner failed to respond to any of the notices and finally the impugned

W.P.(C.) No.39941/2023 4 Ext.P5 notice dated 31.10.2023 has been issued to the petitioner under Section 144 of the I.T.Act, giving him time till 14.12.2023 to file response to the said show cause notice. The petitioner has still nine days left to file response/reply to the said show cause notice. This Court finds no ground to interfere with the writ petition. Therefore, the writ petition is dismissed as there is no error of jurisdiction or violation of principles of natural justice. Sd/- DINESH KUMAR SINGH

JUDGE DCS/07.12.2023

W.P.(C.) No.39941/2023 5 APPENDIX PETITIONER EXHIBITS EXHIBIT P1 THE TRUE COPY OF NOTICE UNDER SECTION 148 OF THE ACT, 1961 DATED 07/04/2022 EXHIBIT P2 THE TRUE COPY OF ORDER UNDER SECTION 148A(D) DATED 06/04/2022 EXHIBIT P3 THE TRUE COPY OF NOTICE DATED 05/02/2023 UNDER SECTION 142(1) OF THE ACT. 1961 ALONG WITH ANNEXURE EXHIBIT P4 THE TRUE COPY OF NOTICE DATED 22/07/2023 UNDER SECTION 142(1) OF THE ACT. 1961 ALONG WITH ANNEXURE THERE TO EXHIBIT P5 ". THE TRUE COPY OF SHOW CAUSE NOTICE DATED 31/10/2023 UNDER SECTION 144 OF THE ACT, 1961 EXHIBIT P6 THE TRUE COPY OF E -PROCEEDINGS RESPONSE ACKNOWLEDGEMENT

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