2020 (8) TMI 663 - HC - Income Tax

High Court denies Writ Petition challenging Income Tax assessment order

417 Vadamugam Kangayampalayam Primary Agricultural Cooperative Credit Society Ltd. Versus The Income Tax Officer, Ward - 1 (3) TPR Income Tax Office, Tiruppur

417 Vadamugam Kangayampalayam Primary Agricultural Cooperative Credit Society Ltd. Versus The Income Tax Officer, Ward - 1 (3) TPR Income Tax Office, ... Issues:Challenge to order of assessment under Section 143(3) of the Income Tax Act, 1961 for AY 2017-18. Petitioner seeking dispensation of production of original order of assessment. Claim of entitlement to exemption under Section 80P of the Act based on principles of mutuality.Analysis:The High Court of Madras, in the judgment delivered by the Honourable Dr. Justice Anita Sumanth, addressed the challenge posed to an order of assessment passed under Section 143(3) of the Income Tax Act, 1961 for the assessment year 2017-18. The petitioner had filed a Writ Petition along with a Miscellaneous Petition requesting dispensation of the original order of assessment. However, the petitioner failed to provide any valid reason for dispensation, merely stating that the original order was not readily available at the time of filing the Writ Petition. The court noted that despite the passage of time, the original order had not been produced, leading to a lack of justification for entertaining the Writ Petition, ultimately resulting in the inclination to dismiss it summarily.Furthermore, the judgment highlighted that the impugned order was related to assessment and was subject to statutory appeal. The affidavit filed in support of the Writ Petition failed to present any substantial grounds for interference under Article 226 of the Constitution of India. The petitioner's main contention revolved around claiming an exemption under Section 80P of the Act through the application of mutuality principles, which was the sole ground raised in the petition.The court referenced a previous case involving other Cooperative Societies where it directed the filing of a statutory appeal challenging assessment orders. In the interest of consistency, the petitioner in this case was also granted permission to file an appeal within two weeks from the date of the judgment. The appeal, if submitted within the specified timeframe, would be accepted by the office of the Commissioner of Income Tax (Appeals) and processed without regard to the limitation period, in accordance with the law.Conclusively, the Writ Petition was dismissed by the court without imposing any costs, and the connected Miscellaneous Petitions were also rejected. The judgment provided a clear stance on the lack of justification for dispensing with the original order of assessment and emphasized the statutory appeal process for addressing the petitioner's claim of exemption under Section 80P of the Income Tax Act.