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

WP(C)/8971/2020HC KeralaKLHC01022787202024 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. The Tribunal was instructed to afford an opportunity of hearing to the petitioner before making a decision. Crucially, the Court directed that the decision should be made within a period of three months from the date of receipt of a copy of the judgment. The Court also specified that the disposal should be done without insisting on the payment of 20% of the tax demanded, as per a circular of 2017. Furthermore, the Court ordered that recovery proceedings pursuant to the assessment order shall be kept in abeyance until a decision is taken on the appeal. No issue was left undecided; the primary relief sought by the petitioner was granted.

What were the facts?

The petitioner, The Pottassery 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) to dispose of its appeal. The appeal was filed against an assessment order passed by the Income Tax Officer. The petitioner had approached the ITAT (third respondent) against the order of the Commissioner of Income Tax (Appeals) (second respondent). The assessment order was marked as Ext.P1 and the appeal before the ITAT as Ext.P3. The petitioner sought a direction for the expeditious disposal of this appeal.

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 assessee. (Question of procedure/mandamus) Assessee's Contention: The assessee, The Pottassery Service Co-operative Bank Ltd, sought a direction from the High Court for the expeditious disposal of its appeal pending before the ITAT. The assessee relied on a circular of 2017 which apparently allows for disposal without insisting on 20% of the tax demanded. Revenue's Contention: The judgment records that the learned counsel on both sides were heard. No specific arguments or contentions from the revenue's side are recorded in the judgment.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL WEDNE AY, THE 24TH DAY OF JUNE 2020 / 3RD ASHADHA, 1942 WP(C).No.8971 OF 2020(V) PETITIONER/S: THE POTTASSERY SERVICE CO-OPERATIVE BANK LTD NO. P 543, POTTASSERY, MANNARKKAD, PALAKKAD 678 598, REPRESENTED BY ITS SECRETARY, JOLLY SEBASTIAN, AGED 65, S/O. DEVASSIA. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 4, AYAKAR BHAVAN, PALAKKAD 678 014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) THRISSUR 680 021. 3 THE INCOME TAX APPELLATE TRIBUNAL, AYAKAR BHAVAN, KAKKANADU, KOCHI 682 030, REPRESENTED BY ITS REGISTRAR. OTHER PRESENT: SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.06.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.8971 OF 2020 -2- JUDGMENT Dated this the 24th day of June 2020 Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal preferred before the third respondent/Commissioner of Income Tax (Appeals) against the assessment order Ext.P1. 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 jm JUDGE

WP(C).No.8971 OF 2020 -3-

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2014-15 DATED 20.12.2016. EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2014-15 DATED 17.02.2020. EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT 2014-15 DATED 13.03.2020. EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DATED 13.3.2020.

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