Kerala High Court Dismisses Writ Petition Against Income Tax Assessment Order

Case Name:

WP(C) No. 39941 of 2023 - The Puliyoor Service Co-operative Bank Ltd v. Principal Chief Commissioner of Income Tax, Kerala Region, et al.

Key Takeaways:

1. The petitioner, The Puliyoor Service Co-operative Bank Ltd, filed a writ petition challenging the validity of an income tax assessment order.
2. The petitioner failed to file a return of income for the assessment year 2015-16, leading to the authorities issuing a show cause notice.
3. Despite multiple notices, the petitioner did not respond, resulting in the issuance of the impugned notice.
4. The High Court of Kerala found no grounds to interfere with the writ petition and dismissed it, stating that there was no error of
5. jurisdiction or violation of principles of natural justice.

Case Synopsis:

The judgment was delivered by the Honorable Mr. Justice Dinesh Kumar Singh on Tuesday, the 5th day of December 2023. The case number is WP(C) No. 39941 of 2023.

The petitioner in this case is The Puliyoor Service Co-operative Bank Ltd, represented by its Secretary, located in Perissery P.O, Chengannoor, Alappuzha, Pin – 689126. The respondents in the case are:

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.
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 Cooperation, Secretariat, Thiruvananthapuram, Pin – 695001.
6. The Registrar of Cooperative Societies, Kerala, Jawahar Sahakarna Bhavan, DPI Junction, Thycaud P.O, Thiruvananthapuram, Pin – 695014.
7. Joint Registrar of Cooperative Societies [General], Alappuzha, Office of the Joint Registrar of Cooperative Societies, Mullackal, Alappuzha, Pin – 688011.

The petitioner filed this writ petition under Article 226 of the Constitution of India, challenging the validity of Exts.P2 order and P5 show cause notice issued under Sections 148A(d) and 144 of the Income Tax Act, 1961. The petitioner did not file a return of its income for the assessment year 2015-16. The authorities selected the petitioner’s case for assessment as they believed that the income of the petitioner had escaped assessment within the meaning of Section 147 (of Income Tax Act, 1961) of the Income Tax Act.

The petitioner was issued a notice under Section 148 (of Income Tax Act, 1961) of the Income Tax Act on 07.04.2022 (Ext.P1), but the petitioner did not respond to the show cause notice. After giving an opportunity of hearing to the petitioner, the authorities passed the Ext.P2 order under clause (d) of Section 148A (of Income Tax Act, 1961) of the Income Tax Act on 06.04.2022. Subsequently, several notices were issued to the petitioner, but the petitioner failed to respond to any of them. Finally, the impugned Ext.P5 notice dated 31.10.2023 was issued to the petitioner under Section 144 (of Income Tax Act, 1961) of the Income Tax Act, giving them time until 14.12.2023 to file a response to the show cause notice.

The court found no grounds to interfere with the writ petition and dismissed it, stating that there was no error of jurisdiction or violation of principles of natural justice.

FAQ:

Q1: What was the writ petition about?

A1: The writ petition was filed by The Puliyoor Service Co-operative Bank Ltd challenging the validity of an income tax assessment order.

Q2: Why did the authorities issue a show cause notice?

A2: The authorities issued a show cause notice because the petitioner failed to file a return of income for the assessment year 2015-16.

Q3: Did the petitioner respond to the show cause notice?

A3: No, the petitioner did not respond to the show cause notice, despite multiple notices being issued.

Q4: What was the outcome of the writ petition?

A4: The High Court of Kerala dismissed the writ petition, stating that there was no error of jurisdiction or violation of principles of natural justice.