THE CHETHALLUR SERVICE CO-OPERATIVE BANK LTD. NO. F I462, vs. THE INCOME TAX OFFICER,

WP(C)/8664/2020HC KeralaKLHC01022303202026 June 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the third respondent (Income Tax Appellate Tribunal) to decide the appeal (Ext.P3) in accordance with law. This decision is to be made after providing the petitioner an opportunity of hearing, within a period of three months from the date of receipt of a copy of the judgment. Crucially, the court ordered that the ITAT should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the appellate order (Ext.P2) are to be kept in abeyance until a decision is taken on the appeal. The principle established is that appellate authorities should dispose of pending matters expeditiously, and interim relief regarding recovery can be granted pending such disposal, considering relevant circulars.

What were the facts?

The petitioner, The Chethallur Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction to the Income Tax Appellate Tribunal (ITAT), the third respondent, to dispose of its appeal (Ext.P3). This appeal was filed against an appellate order (Ext.P2) passed by the Commissioner of Income Tax (Appeals). The petitioner sought a directive for the ITAT to decide the appeal expeditiously. The Income Tax Officer (Ward 4, Palakkad) and the Commissioner of Income Tax (Appeals), Thrissur, were the other respondents. The assessment year(s) are not specified in the judgment.

What were the issues?

1. Whether the High Court should direct the Income Tax Appellate Tribunal to dispose of the pending appeal filed by the petitioner. The petitioner argued that they have filed an appeal before the ITAT and are seeking a direction for its disposal. The judgment does not record any specific arguments from the revenue respondents regarding the disposal of the appeal. However, the court's direction implicitly addresses the revenue's interest in the timely resolution of tax disputes.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL FRIDAY, THE 26TH DAY OF JUNE 2020 / 5TH ASHADHA, 1942 WP(C).No.8664 OF 2020(G) PETITIONER/S: THE CHETHALLUR SERVICE CO-OPERATIVE BANK LTD. NO. F I462, CHETHALLUR,MANNARKKAD,PALAKKAD-678583, REPRESENTED BY ITS SECRETARY,ASHRAF.K, AGED 43,S/O MUHAMMED. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD 4,AYAKAR BHAVAN, PALAKKAD-678014. 2 THE COMMSSIONER OF INCOME TAX (APPEALS), THRISSUR-680021. 3 THE INCOME TAX APPELLATE TRIBUNAL, AYAKAR BHAVAN,KAKKANADU, KOCHI-682030,REPRESENTED BY ITS REGISTRAR. OTHER PRESENT: SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.06.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.8664 OF 2020(G) 2 JUDGMENT Dated this the 26th day of June 2020 Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal preferred before the third respondent against the appellate order Ext.P2. 2. Having heard the learned counsel on both sides, the writ petition is disposed of with a direction to the third respondent to take a decision on Ext.P3 appeal in accordance with law, after affording an opportunity of hearing to the petitioner, within a period of three months from the date of receipt of a copy of this judgment without insisting on payment of 20% of the tax demanded, as per circular of 2017. Till such time a decision is taken on the appeal, recovery proceedings pursuant to the appellate order shall be kept in abeyance. AMIT RAWAL JUDGE Jm/

WP(C).No.8664 OF 2020(G) 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2017-18 EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2017-18 EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT 2017-18 EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT.

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