Remanded

Melur Co-Operative Urban Bank Limited v. Deputy Commissioner of Income Tax

Madras HC8 Mar 2022WP(MD)/4132/2022

Case brief

AI extract

What is this about?

The Madurai Bench set aside an order under Section 147 of the Income-tax Act passed against a Co-operative Urban Bank. The court held notices were improperly addressed to a deceased auditor and the time given during the pandemic was too short.

What did the court decide?

Impugned order set aside; case remitted for fresh order; shows cause notice treated as corrigendum.

Melur Co-Operative Urban Bank Limited Vs Deputy Commissioner of… — Income Tax | Madras HC (2022)

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W.P(MD)No.4132 of 2022

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED : 08.03.2022

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CORAM

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THE HONOURABLE MR.JUSTICE C.SARAVANAN

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W.P(MD).No.4132 of 2022 and W.M.P(MD).No.3550 and 3551 of 2022

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Melur Co-operative Urban Bank Limited, Represented by its Administrator, Mrs.M.Uma, D-317, Alagar Koil Road, Melur, Madurai – 625 106.

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... Petitioner

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Vs.

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1.Deputy Commissioner of Income Tax, Corporate Circle, No.2, VP Rathinaswamyanadar Road, CR Building Bibikulam,

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Madurai – 625 002.

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2.Additional/Joint/Deputy/Assistant Commissioner, of Income Tax/Income Tax Officer,

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National Faceless Assessment Centre, Ministry of Finance, Income Tax Department, New Delhi – 110 055. ...Respondents

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Prayer : Writ Petition is filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorari, to call for the records of the 2^nd respondent dated 27.01.2022 in Order No.ITBA/AST/S/147/2021-22/ 1039126094 (1) for the Assessment Year 2017-18 passed under Section 147 read with Section 144 and 144B of the income tax Act and quash the same.

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For Petitioner : Mrs.M.Ramya For M/s.Mcgan Law Firm For Respondents : Mr.N.Dilip Kumar Senior Standing Counsel

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ORDER

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I have considered the arguments advanced by the learned counsel for the petitioner and the learned counsel for the respondents. https://hcservices.ecourts.gov.in/hcservices/

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W.P(MD)No.4132 of 2022

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The petitioner is only a Co-operative Urban Bank. Nodoubt, there is a failure on the part of the petitioner in not filing statutory returns under Section 139 of the Income Tax Act, 1961 in time, nevertheless, the fact remains that after a notice was issued on 27.03.2021 to the petitioner, which was addressed to the E-mail Id of the petitioner’s auditor S.V.V.Ananthasayanam, who died on 04.07.2020. Thus, the communications preceeding the impugned order remained were not properly communicated to the petitioner. When the proceedings under Section 148 of the Act were initiated the whole country was still reeling under Covid-19 Pandemic. The time granted to the petitioner in the show cause notice, dated 14.01.2022 up to 18.01.2022 appears was too short.

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Considering the fact that the petitioner could not reply to any of the notices issued earlier, which were addressed to the petitioner’s Auditor, namely, late S.V.V.Ananthasayanam, and considering the fact that the petitioner is bonfide assessee and has paid an advance tax on 15.03.2017, I am inclined to set aside the impugned order and remit the case back to the respondents to pass fresh order.

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Accordingly, the impugned order is set aside and the case is remitted back to the second respondents to pass a fresh order denovo, on merits and in accordance with law preferably within a period of ninety days from the date of receipt of this order. The petitioner is directed to get ready with a reply and file the same within a period of fifteen days from date of the intimation from the office of the second respondent to reply to the show cause notice, dated 14.01.2022. The impugned order which stands quashed shall also be treated as a corrigendum to show cause notice, dated 14.01.2022 already issued to the petitioner. The petitioner shall place all the fact and give a consolidated reply before the second respondent.

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The writ petition stands disposed of with the above observations. No costs. Consequently, the connected Miscellaneous Petitions are closed.

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Sd/Assistant Registrar(P & A)

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// True Copy //

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/ /2022 Sub Assistant Registrar(CS)

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https://hcservices.ecourts.gov.in/hcservices/

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W.P(MD)No.4132 of 2022

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1.Deputy Commissioner of Income Tax, Corporate Circle, Madurai No.2, VP Rathinaswamyanadar Road, CR Building Bibikulam, Madurai – 625 002. 2.Additional/Joint/Deputy/Assistant Commissioner, of Income Tax/Income Tax Officer, National Faceless Assessment Centre, Ministry of Finance, Income Tax Department, New Delhi – 110 055. +1 CC to M/s.MCGAN LAW FIRM, Advocate ( SR-10844[F] dated 09/03/2022 ) +1 CC to M/s.N.DILIPKUMAR, Advocate ( SR-10914[F] dated 09/03/2022 ) W.P(MD).No.4132 of 2022 08.03.2022 KS(CO) TR(28.03.2022) 3P 5C

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https://hcservices.ecourts.gov.in/hcservices/

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Melur Co-Operative Urban Bank Limited v. Deputy Commissioner of Income Tax

Case brief

What is this about?

What did the court decide?

Melur Co-Operative Urban Bank Limited v. Deputy Commissioner of Income Tax

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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