THE KUMARAMPUTHUR SERVICE CO-OPERATIVE BANK LTD vs. THE INCOME TAX OFFICER

WP(C)/5673/2020HC KeralaKLHC01015086202025 June 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the third respondent (ITAT) to decide the appeal (Ext.P3) in accordance with law. This decision is to be made after providing an opportunity of hearing to the petitioner. The ITAT is to dispose of the appeal within three months from the date of receipt of a copy of the judgment. Crucially, the ITAT is directed not to insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Until a decision is taken on the appeal, recovery proceedings initiated pursuant to the assessment order are to be kept in abeyance. The judgment does not address the merits of the underlying tax dispute.

What were the facts?

The petitioner, The Kumaranputhur Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction for the disposal of its appeal and stay application (Ext.P3 and Ext.P4) pending before the Income Tax Appellate Tribunal (ITAT), the third respondent. The appeal was filed against an appellate order (Ext.P2). The petitioner sought a stay on recovery proceedings pursuant to the assessment order. The High Court heard both parties and considered the pending appeal and stay application.

What were the issues?

1. Whether the ITAT should be directed to dispose of the pending appeal and stay application filed by the petitioner? (Question of procedure) Assessee's Contention: The petitioner sought a direction for the expeditious disposal of its appeal and stay application before the ITAT. The petitioner also sought a stay on recovery proceedings. Revenue's Contention: The judgment does not record any specific contentions raised by the revenue. However, the court's direction to dispose of the appeal without insisting on 20% of the tax demanded suggests that the revenue might have sought adherence to the standard pre-deposit requirement.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL THUR AY, THE 25TH DAY OF JUNE 2020 / 4TH ASHADHA, 1942 WP(C).No.5673 OF 2020(H) PETITIONER/S: THE KUMARAMPUTHUR SERVICE CO-OPERATIVE BANK LTD NO.P373, MANNARKKAD COLLEGE.P.O, KUMARAMPUTHUR, MANNARKKAD, PALAKKAD-678583, REPRESENTED BY ITS SECRETARY - IN CHARGE, N.KRISHNADAS AGED 57, S/O.RAGHAVAN NAIR 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 COMMISSIONER OF INCOME TAX(APPEALS), AYAKAR BHAVAN, THRISSUR-680001 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 25.06.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.5673 OF 2020(H) 2 JUDGMENT Dated this the 25th day of June 2020 Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal and stay application Ext.P4 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 assessment order shall be kept in abeyance. AMIT RAWAL JUDGE Jm/

WP(C).No.5673 OF 2020(H) 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2015-16 EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2015-16 EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT 2015-16 EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT

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