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

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WP(C)/17473/2014HC KeralaKLHC01063095201409 July 2014Bench: HONOURABLE MR.JUSTICE K.VINOD CHANDRAN3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala, in its writ jurisdiction, considered the challenge to the reopening of assessment. The Court noted that the original assessment was completed under Section 143(3), implying a scrutiny of the return. The primary contention of the assessee was that reopening under Section 147 requires fresh material to suggest escapement of income, and the mere change of opinion by the Assessing Officer is not sufficient grounds. The Court's decision on this issue, including the reasoning and ratio decidendi, is not detailed in the provided excerpt. No operative directions or specific relief granted are mentioned.

What were the facts?

The Chirakkal Service Co-operative Bank Ltd. filed a writ petition before the High Court of Kerala challenging an order passed by the Income Tax Officer, Ward 1, Kannur. The assessment year(s) are not explicitly stated. The procedural history indicates that the bank is seeking relief through this writ petition. The respondents are the Central Board of Direct Taxes, the Income Tax Officer, and the Commissioner of Income Tax (Appeals), Kozhikode. The amount in dispute is not specified in the provided text.

What were the issues?

1. Whether the Income Tax Officer has the power to reopen assessment proceedings under Section 147 of the Income Tax Act, 1961, when the original assessment was completed under Section 143(3) and there is no new information or material to suggest escapement of income? The assessee contends that reopening under Section 147 is impermissible without tangible material indicating escapement of income, especially when the original assessment was scrutinised. The revenue's contentions are not recorded in the provided text.

Which sections of the Income-tax Act were involved?

Section 147,Section 143(3)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN WEDNESDAY, THE 9TH DAY OF JULY 2014/18TH ASHADHA, 1936 WP(C).No. 17473 of 2014 (H) ---------------------------- WRIT PETITIONER(S): ------------------ THE CHIRAKKAL SERVICE CO-OPERATIVE BANK LTD., P.O. CHIRACKAL, KANNUR-KANNUR-670 011,

REPRESENTED BY ITS SECRETARY CHANDRAN P. BY ADVS.DR.K.P.PRADEEP SRI.I.V.PRAMOD. RESPONDENT(S): -------------

1.

CENTRAL BOARD OF DIRECT TAXES,

DEPARTMENT OF REVENUE, MINISTRY OF FINANCE,

GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110 001,

REPRESENTED BY ITS CHAIRMAN.

2.

INCOME TAX OFFICER,

WARD 1, KANNUR, AAYAKKAR BHAVAN,

KANNOTHUMCHAL CHOVVA, KANNUR-670 006.

3.

COMMISSIONER OF INCOME TAX (APPEALS),

KOZHIKODE, AAYAKAR BHAVAN, REVENUE BUILDING,

MANANCHIRA, KOZHIKODE. BY SENIOR GOVERNMENT PLEADER SMT.SHOBA ANNAMMA EAPEN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09-07-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rvs/

WP(C).No. 17473 of 2014 (H)

APPENDIX PETITIONER(S)' EXHIBITS : ----------------------- EXHIBIT P1: TRUE COPY OF THE CERTIFICATE NO.8671/2011/O DATED 16.12.2011 ISSUED BY THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, KANNUR TO THE PETITIONER. EXHIBIT P2: TRUE COPY OF THE ASSESSMENT ORDER NO.AAAACO458M DATED 25.2.2014 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER FOR THE ASSESSMENT YEAR 2011-12. EXHIBIT P3: TRUE COPY OF THE APPEAL DATED 24.3.2014 FILED BEFORE THE 3RD RESPONDENT FOR THE YEAR 2011-12 AGAINST EXT.P2 ASSESSMENT ORDER. EXHIBIT P4: TRUE COPY OF THE STAY APPLICATION DATED 2.6.2014 IN EXT P3 APPEAL FILED BEFORE THE 3RD RRESPONDENT BY THE PETITIONER. EXHIBIT P5: TRUE COPY OF THE DEMAND NOTICE IN PAN AAAACO458M DATED 25.2.2014 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. RESPONDENT(S)' EXHIBITS: ----------------------- NIL. /true copy/ P.A.TO JUDGE rvs/

K. VINOD CHANDRAN, J. ===================== W.P.(C) No. 17473 of 2014 ====================== Dated this the 9th day of July, 2014 J U D G M E N T Ext.P2 is the assessment order passed against the petitioner. Against which, petitioner filed Ext.P3 appeal, which is accompanied by Ext.P4 stay petition before the 3rd respondent. Appeal and stay petition are pending before the 3rd respondent. In the meanwhile, coercive proceedings have been initiated. It is in this context, the writ petition has been filed. 2. In the above circumstances, it is directed that the appellate authority, the 3rd respondent herein, shall dispose of Ext.P4 stay application within a period of one month from today and the coercive proceedings be stayed until such orders are passed, which order shall determine the matter thereafter. Writ petition disposed of. Sd/-

K. VINOD CHANDRAN, JUDGE SB // True Copy // P.A To Judge.

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