PUNJAB NATIONAL BANK vs. THE INCOME TAX APPELLATE TRIBUNAL,

WP(C)/20030/2019HC KeralaKLHC01051164201923 July 2019Author: HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court, taking note of the facts and circumstances, was of the view that one more opportunity should be given to the petitioner. Consequently, the impugned orders of the ITAT were set aside. The original appeal, I.T.A No.598, was restored. The petitioner was directed to appear before the Tribunal on 12/08/2019. The principle here is that in certain circumstances, particularly when an appeal is dismissed for non-prosecution and a subsequent recall application is also dismissed for similar reasons, the High Court may exercise its writ jurisdiction to grant a final opportunity to the assessee to prosecute its appeal, especially if it appears to be a case of oversight or genuine difficulty rather than deliberate inaction.

What were the facts?

The petitioner, Punjab National Bank, is challenging an order of the Income Tax Appellate Tribunal (ITAT) that rejected its application to recall an ex-parte order. The original appeal, I.T.A No.598 dated 13/11/2018, was dismissed for non-prosecution. Subsequently, the bank filed an application to recall this ex-parte dismissal order. However, this recall application was also dismissed due to the absence of representation from the petitioner. The High Court of Kerala is considering the writ petition filed by the bank against these orders.

What were the issues?

1. Whether the High Court should interfere with the ITAT's order dismissing the application to recall an ex-parte order, given the circumstances leading to the dismissal of the original appeal for non-prosecution. Assessee's Contention: The petitioner, Punjab National Bank, implicitly argues that the dismissal of its recall application was unjust and that it deserves another opportunity to present its case before the Tribunal. The bank seeks to have the ex-parte dismissal order set aside and the appeal restored. Revenue's Contention: The judgment does not record any specific contentions from the revenue. The ITAT's orders were against the assessee, and the writ petition is directed against the ITAT and other income tax authorities.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE TUESDAY, THE 23RD DAY OF JULY 2019 / 1ST SRAVANA, 1941 WP(C).No.20030 of 2019 PETITIONER: PUNJAB NATIONAL BANK PARAMEKKAVU DEVASWOM BUILDING, PALACE ROAD, THRISSUR-680020, REPRESENTED BY ITS ASST. GENERAL MANAGER. BY ADV. SRI.C.AJITH KUMAR RESPONDENTS: 1 THE INCOME TAX APPELLATE TRIBUNAL, 1ST FLOOR (BLOCK C1 AND C2), KENDRIYA BHAVAN, OPP. CSEZ, KAKKANAD, KOCHI-31. 2 THE COMMISSION OF INCOME TAX (APPEALS), 3RD FLOOR, AAYKAR BHAVAN, SAKTHAN NAGAR, THRISSUR -680001. 3 THE INCOME TAX OFFICER (TDS), AAYAKAR BHAVAN, SAKTHAN NAGAR, THRISSUR-680001. OTHER PRESENT: SC SRI CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.07.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.20030 of 2019 -2-

JUDGMENT This writ petition is filed by the Punjab National Bank, an assessee, under the Income Tax Act, 1961, challenging an order rejecting there application to recall an ex-parte order of the Tribunal in I.T.A No.598 dated 13/11/2018. 2. The above I.T.A was dismissed due to the non prosecution. Thereafter, an application was filed to recall the ex-parte order. This was dismissed as there was no representation on the part of the petitioner.

Taking note of the facts and circumstances, I am of the view that one more opportunity should be given to the petitioner. Accordingly, the impugned orders are set aside and I.T.A appeal is restored.

The petitioner shall appear before the Tribunal on 12/08/2019 The writ petition is disposed of accordingly. A.MUHAMED MUSTAQUE JUDGE SJ -3- APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ORDER DATED 29.3.2016 PASSED BY THE 3RD RESPONDENT UNDER SECTION 201(1)/201(1A) OF THE INCOME TAX ACT, 1961. EXHIBIT P2OF THE ORDER DATED 30.11.2016 PASSED BY THE 3RD RESPONDENT UNDER SECTION 154 OF THE INCOME TAX ACT, 1961. EXHIBIT P3OF THE APPELLATE ORDER DATED 11.9.2017 PASSED BY THE 2ND RESPONDENT. EXHIBIT P4OF THE APPEAL DATED 9.11.2017 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. EXHIBIT P5OF THE APPEAL DATED 1.11.2017 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT AGAINST EXT.P2 ORDER. EXHIBIT P6OF THE AFFIDAVIT FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR CONDONATION OF DELAY IN FILING EXT.P5 APPEAL. EXHIBIT P7OF THE NOTICE DATED 9.5.2018 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER FIXING THE DATE OF HEARING OF EXT.P2. EXHIBIT P8OF THE LETTER DATED 18.7.2018 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P9OF THE LETTER DATED 11.9.2018 SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. EXHIBIT P10OF THE ORDER DATED 13.11.2018 PASSED BY 1ST RESPONDENT IN EXT.P4. -4- EXHIBIT P11OF THE MISCELLANEOUS APPLICATION M.P.21/2019 DATED 31.12.2018 SUBMITTED BY PETITIONER BEFORE THE 1ST RESPONDENT. EXHIBIT P12OF THE NOTICE DATED 25.3.2019 ISSUED BY 1ST RESPONDENT TO THE PETITIONER FIXING THE DATE OF HEARING OF EXT.P11 ON 5.4.2019. EXHIBIT P13OF THE LETTER DATED 29.3.2019 SUBMITTED BY PETITIONER BEFORE THE 1ST RESPONDENT AND DULY RECEIVED BY THEM ON 2.4.2019. EXHIBIT P14OF THE ORDER DATED 10.5.2019 PASSED BY THE 1ST RESPONDENT IN M.P.21/2019 IN I.T.A.NO.598/COCH/2017.

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