CHALISSERY SERVICE CO-OPERATIVE BANK LTD vs. ADDITIONAL COMMISSIONER OF INCOME TAX

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WP(C)/3341/2022HC KeralaKLHC01007225202201 February 2022Author: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the penalty orders issued under Section 271(1)(c) and Section 270A of the Income Tax Act are appealable under Section 246A of the Act. Therefore, the Court was of the view that the appropriate remedy for the petitioner was to pursue the statutory remedies available to them. Consequently, the writ petition was dismissed. The Court, however, granted liberty to the petitioner to pursue the statutory remedies against the penalty orders (Ext.P1 to Ext.P3). No specific finding was made on the merits of the penalty orders themselves, as the petition was dismissed on the ground of alternative remedy.

What were the facts?

The petitioner, M/s. Chalissery Service Co-operative Bank Ltd, is challenging penalty orders issued under Section 271(1)(c) and Section 270A of the Income Tax Act, 1961. These orders are marked as Ext.P1 to Ext.P3. The petitioner filed a writ petition before the High Court of Kerala seeking to set aside these penalty orders. The respondents are various authorities within the Income Tax Department, including the National Faceless Assessment Centre and the Income Tax Officer, Ward-2, Palakkad.

What were the issues?

1. Whether the writ petition is maintainable when statutory remedies are available against the impugned penalty orders. The assessee (petitioner) contended that the writ petition was filed to challenge the penalty orders. The revenue (respondents) did not explicitly record any arguments in the judgment. The Court had to decide whether to entertain the writ petition directly or direct the assessee to pursue the available statutory appeal mechanism.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 270A,Section 246A

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 BECHU KURIAN THOMAS TUESDAY, THE 1ST DAY OF FEBRUARY 2022 / 12TH MAGHA, 1943 WP(C) NO. 3341 OF 2022 PETITIONER: M/S.CHALISSERY SERVICE CO-OPERATIVE BANK LTD P-579, CHALISSERY, PALAKKAD - 679 536 REPRESENTED BY ITS SECRETARY, SHRI.PUSHPAKARAN, VALIYAVEETUVALAPPIL KANDU. BY ADVS. T.M.SREEDHARAN (SR.) NISHA JOHN ALAN PRIYADARSHI DEV V.P.NARAYANAN RESPONDENTS: 1 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE ROOM NO 401, 2ND FLOOR, E-RAMP, JAWAHARLAL STADIUM, DELHI - 110 003. 2 THE INCOME TAX OFFICER WARD-2, ENGLISH CHURCH ROAD, THAYILPATTI, PUDUPPALLI THERUVU, VALAKKAD, PALAKKAD - 678 001. OTHER PRESENT: ADV.JOSE JOSEPH-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.02.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 3341 OF 2022 2 BECHU KURIAN THOMAS, J. ----------------------------------------- W.P.(C) No. 3341 of 2022 ---------------------------------------- Dated this the 1st day of February, 2022

JUDGMENT Petitioner is challenging orders of penalty issued under Section 271(1)(c) and 270A of the Income Tax Act as per Ext.P1 to Ext.P3. Since, the aforesaid orders of penalty are appealable under Section 246A of the Act, I am of the view that the remedy of the petitioner is to pursue the statutory remedies. Accordingly, this writ petition is dismissed, reserving the liberty of the petitioner to pursue the statutory remedies against Ext.P1 to Ext.P3. This writ petition is dismissed. BECHU KURIAN THOMAS JUDGE AJM

WP(C) NO. 3341 OF 2022 3 APPENDIX OF WP(C) 3341/2022 PETITIONER’S EXHIBITS : Exhibit P1OF THE PENALTY ORDER DATED 29/12/2021 AND DEMAND NOTICE DATED 28/12/2021 FOR THE ASSESSMENT YEAR 2014- 15 PASSED BY THE 1ST RESPONDENT. Exhibit P2OF THE PENALTY ORDER DATED 15/12/2021 AND DEMAND NOTICE DATED 15/12/2021 FOR THE ASSESSMENT YEAR 2015- 16 PASSED BY THE 1ST RESPONDENT. Exhibit P3OF THE PENALTY ORDER DATED 15/12/2021 AND DEMAND NOTICE DATED 14/12/2021 FOR THE ASSESSMENT YEAR 2018- 19 PASSED BY THE 1ST RESPONDENT. Exhibit P4OF THE ACKNOWLEDGMENT FOR HAVING E-FILED APPEALS BEFORE THE STATUTORY AUTHORITY FOR THE ASSESSMENT YEAR 2014-15. Exhibit P5OF THE ACKNOWLEDGMENT FOR HAVING E-FILED APPEALS BEFORE THE STATUTORY AUTHORITY FOR THE ASSESSMENT YEAR 2015-16. Exhibit P6OF THE ACKNOWLEDGMENT FOR HAVING E-FILED APPEALS BEFORE THE STATUTORY AUTHORITY FOR THE ASSESSMENT YEAR 2018-19. RESPONDENT’S EXHIBITS : NIL AJM //// PA TO JUDGE

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