PALA MARKETING CO-OP SOCIETY LTD Vs. COMMISSIONER OF INCOME TAX; JOINT COMMISSIONER OF INCOEM TAX (ASSESSMENT)

JUDGEMENT

(1.) This writ petition is filed challenging Ext.P9 by which the Commissioner of Income Tax by order dated 25/03/2013 rejected an application filed under Section 264 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') inter alia observing that there was justification on the part of the authorities to have rejected the assessee's request for interest under Section 244A of the Act. Petitioner also sought for a direction to the respondents to pay interest on refund as provided under Section 244A of the Act from 01/04/1997.

(2.) The short facts involved in the writ petition would disclose that the petitioner, being a Primary Co-operative Society, was assessed to income tax for the assessment year 1997-98. After the mandatory audit under Section 64 of the Kerala Co- operative Societies Act, the returns could be filed only on 01/02/2000. It is stated that the Society had paid advance tax of Rs.10 lakhs and Tax Deducted at Source (TDS) amounting to Rs.47,957/-.

(3.) When the return was filed, the taxable income was found to be nil and therefore the petitioner became eligible for refund of Rs.10,47,957/- as provided under Section 247 of the Act. Application for refund was filed before the assessing authority on 01/02/2000. However, the same was rejected on the ground that the return was filed belatedly, in terms of Ext.P1 order dated 01/08/2000. Petitioner filed an application under Section 119(2) (b) of the Act before the Central Board of Direct Taxes (CBDT) seeking condonation of delay in filing the returns, which came to be rejected as per Ext.P2 order dated 17/11/2006. WP(C) No. 21977/2007 was filed challenging Ext.P2 order. By judgment dated 26/11/2007, this Court condoned the delay and observed that the petitioner was entitled for refund under Section 237 of the Act. The assessing authority was directed to process the claim for refund. The assessing authority passed an order dated 11/02/2008 directing refund of Rs.10,47,957/- However, it was observed that the assessee is not entitled for interest under Section 244A. Petitioner challenged the order before the Commissioner of Income Tax (Appeals) which came to be dismissed as per Ext.P5 order dated 11/11/2008. Further, appeal was filed before the Income tax Appellate Tribunal and the matter was remitted back to the assessing officer to consider the claim under Section 244A(b) read with Explanation (2) of the Act by virtue of order dated 13/01/2011 (Ext.P6). The order of remand was challenged by the petitioner before this Court filing ITA No.33/2011 which was disposed of with an observation that the petitioner was entitled to seek revision before the Commissioner of Income Tax, pursuant to which the petitioner filed a revision which came to be rejected in terms of Ext.P9.