Case Law Details
Thuruthipuram Service Co-Operative Bank Ltd. Vs ITO (Kerala High Court)
Introduction: The Kerala High Court recently addressed concerns raised by Thuruthipuram Service Co-Operative Bank Ltd. through a writ petition, urging swift action on their stay petition. This legal development unfolds against the backdrop of Income Tax authorities denying a deduction claim and initiating penalty proceedings under Section 270A for the assessment year 2020-21.
Detailed Analysis: The petitioner, Thuruthipuram Service Co-Operative Bank Ltd., filed its income tax return for the assessment year 2020-21 on January 6, 2021. The scrutiny process, initiated under the Computer Assisted Scrutiny Selection (CASS), focused on examining claims for deductions, high creditors/liabilities, and deductions under Section 80P.
Notices under Sections 143(2), 142(1) of the Income Tax Act were issued on June 29, 2021, December 3, 2021, and February 7, 2022, respectively. The assessing authority, after thorough examination, disallowed the petitioner’s claim for the deduction of interest earned on deposits. The interest income was assessed at Rs.18,17,072/-, and penalty proceedings under Section 270A were directed.
Challenged by the assessment order, the petitioner sought intervention from the Kerala High Court, primarily urging the court to direct the 3rd respondent to decide on their appeal and stay petition promptly. However, the court refrained from interfering with the appellate authority’s jurisdiction and directed the Income Tax authorities to consider and pass appropriate orders on the stay petition (Ext.P3) expeditiously, preferably within two months.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
