THE MALLAPPALLY SERVICE CO-OPERATIVE BANK LTD vs. THE CENTRAL BOARD OF DIRECT TAXES

WP(C)/37204/2023HC KeralaKLHC01083859202309 November 2023Author: HONOURABLE MR. JUSTICE D. K. SINGH5 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that it had no reason to disbelieve the finding of fact recorded in the impugned order by the Appellate Authority, which stated that the petitioner did not respond to five notices issued to them and did not file any written submissions. The Court found no substance in the petitioner's contention that they did not receive any notices. Consequently, the writ petition was dismissed. The operative direction was the dismissal of the writ petition.

What were the facts?

The petitioner, The Mallappally Service Co-operative Bank Ltd, an assessee under the Income Tax Act, 1961, filed a writ petition challenging an order dated 31.10.2023 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi. This order was passed in appeal for assessment year 2016-17 against an assessment order dated 20.12.2018 passed by the Income Tax Officer, Ward 5, Thiruvalla. The petitioner had filed the appeal on 06.02.2019. The impugned order noted that the petitioner was issued five notices between 20.11.2019 and 12.10.2023, to which no reply was received, and no written submissions were filed in support of the appeal grounds.

What were the issues?

1. Whether the petitioner received notices from the Appellate Authority for the assessment year 2016-17, as contended by the petitioner. Assessee's contention: The petitioner argued that they did not receive any notice in appeal from the Appellate Authority regarding the assessment order for the assessment year 2016-17. Revenue's contention: The revenue, through the impugned order, contended that the petitioner was issued five notices on different dates, and no reply or written submission was received from the petitioner. The Appellate Authority relied on the facts recorded in its order regarding the issuance of notices and the lack of response from the petitioner.

Which sections of the Income-tax Act were involved?

Section 250,Section 143(3)

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 THURSDAY, THE 9TH DAY OF NOVEMBER 2023 / 18TH KARTHIKA, 1945 WP(C) NO. 37204 OF 2023 PETITIONER/S: THE MALLAPPALLY SERVICE CO-OPERATIVE BANK LTD REPRESENTED BY ITS SECRETARY MADHULAL.P KEEZHVAIPUR P.O. PATHANAMTHITTA, PIN - 689587 BY ADVS. K.P.PRADEEP HAREESH M.R. SANAND RAMAKRISHNAN T.T.BIJU T.THASMI M.J.ANOOPA RESPONDENT/S: 1 THE CENTRAL BOARD OF DIRECT TAXES REPRESENTED BY ITS CHAIRMAN DEPARTMENT OF REVENUE, MINISTRY OF FINANCE GOVERNMENT OF INDIA, NORTH BLOCK NEW DELHI, PIN - 110001 2 INCOME TAX OFFICER WARD 2- THIRUVALLA, VAISHNAVAM ARCADE, T.K. ROAD, THIRUVALLA, PATHANAMTHITTA, PIN - 689101 3 COMMISSIONER OF INCOME TAX (APPEALS) KOTTAYAM, AAYAKAR BHAVAN PUBLIC LIBRARAY BUILDING, SASTHRI ROAD, KOTTAYAM-, PIN - 686001 4 PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, NA-FAC INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI, PIN - 110003 5 COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE (NFAC), DELHI, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI, PIN - 110003 OTHER PRESENT: CHRISTOPHER ABRAHAM-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.11.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C.) No. 37204 of 2023 2 JUDGMENT Dated this the 9th day of November, 2023 The present writ petition has been filed by the petitioner, an assessee under the provisions of the Income Tax Act, 1961, impugning the order dated 31.10.2023 passed by the 5th respondent on appeal under Section 250 of the Income Tax Act in respect of the assessment year 2016-17. Said appeal was instituted on 06.02.2019 against the assessment order under Section 143(3) of the Income Tax Act, 1961 dated 20.12.2018 for the assessment year 2016-17 passed by the Income Tax Office, Ward 5, Thiruvalla. The petitioner was issued notices on 5 occasions as mentioned in Paragraph 3 of the impugned order, which is extracted hereunder: Date of Notice Date of hearing Remarks 20.11.2019 05.12.2019 No reply received 12.02.2020 28.02.2020 No reply received 28.01.2021 26.02.2021 No reply received 02.11.2022 Issued Emblements of communication window 12.10.2023 27.10.2023 No reply received W.P(C.) No. 37204 of 2023 3 2. The petitioner chose not to reply any of the said notices and till date of the order i.e, 31.10.2023 no written submission in support of the grounds in the appeal were filed by the petitioner. Therefore, considering the grounds of the appeal and the assessment order the Appellate Authority

has passed the impugned order.

Learned counsel for the petitioner submits that the petitioner did not receive any notice in appeal from the Appellate Authority in respect of the assessment order 2016-

17.

Such contention on the face of facts noted in the impugned order in Ext.P7 does not appeared to be correct. The Appellate Authority while considering the appeal in respect of the assessment year 2016-17, in paragraph 3 of the impugned order specifically mentioned that Five times petitioner was issued notices but he did not respond to any of the notices issued and no written submissions were made.

This Court has no reason to disbelieve the finding of fact regarding no response to the five notices and no written submission filed by the petitioner as recorded in the impugned order. In view therefore, I find no substance in the present writ petition. Therefore, the writ petition is hereby dismissed. DINESH KUMAR SINGH JUDGE AP

Appendix — schedule of exhibits

APPENDIX OF WP(C) 37204/2023 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE CLASSIFICATION ORDER DATED 14-09-2015 ISSUED BY THE JOINT REGISTRAR (GENERAL), CO-OPERATIVE SOCIETIES, PATHANAMTHITTA Exhibit P2 TRUE COPY OF THE ASSESSMENT ORDER NO ITBA/AST/S/143(3)/2018-19/1014440904(1) DATED 20-12-2018 ISSUED FOR THE YEAR 2016-17 BY THE 2ND RESPONDENT Exhibit P3 TRUE COPY OF THE APPEAL DATED 06-02-2019 FILED FOR THE YEAR 2016-17 BEFORE THE 3RD RESPONDENT Exhibit P4 TRUE COPY OF THE NOTICE DATED 20-11-2019 ISSUED BY THE 3RD RESPONDENT Exhibit P5 TRUE COPY OF THE WRITTEN SUBMISSION SENT TO THE 3RD RESPONDENT Exhibit P6 TRUE COPY OF THE EMAIL MESSAGE SENT ON 5- 12-2019 TO THE 3RD RESPONDENT Exhibit P7 TRUE COPY OF THE ORDER DATED 30-10-2023 ISSUED BY THE 5TH RESPONDENT Exhibit P8 . TRUE COPY OF THE NOTICE NO TBA/RCV/F/17/2023-24/1057611012(1) DATED 2-11-2023 ISSUED BY THE 2ND RESPONDENT Exhibit P9 TRUE COPY OF THE NOTICE DATED 12-10-2023 ISSUED FOR THE YEAR 2017-18 BY THE 5TH RESPONDENT Exhibit P10 TRUE COPY OF THE NOTICE DATED 12-10-2023 ISSUED FOR THE YEAR 2018-19 BY THE 5TH RESPONDENT Exhibit P11 TRUE COPY OF THE E-ACKNOWLEDGEMENT FOR THE YEAR 2017-18 FROM THE INCOME TAX PORTAL Exhibit P12 TRUE COPY OF THE E-ACKNOWLEDGEMENT FOR THE YEAR 2018-19 FROM THE INCOME TAX PORTAL

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