SPACE CENTRE EMPLOYEES CO-OPERATIVE SOCIETY LTD. vs. THE INCOME TAX OFFICER, WARD-2 (1)

WP(C)/11637/2020HC KeralaKLHC01029834202015 June 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition by directing the Commissioner of Income Tax (Appeals) (second respondent) to decide the appeal (Ext.P3) within a period of three months from the date of receipt of a copy of the judgment. The disposal is to be in accordance with law and after affording an opportunity of hearing to the petitioner. Crucially, the Court directed that the appeal should be decided without insisting on the payment of 20% of the tax demanded, as per a circular of 2017. Furthermore, recovery proceedings pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The principle established is that appellate authorities should dispose of appeals expeditiously, and in certain circumstances, interim relief regarding tax payment and recovery can be granted pending appeal disposal, referencing a circular.

What were the facts?

The petitioner, Space Centre Employees Co-operative Society Ltd., filed a writ petition before the High Court of Kerala seeking a direction for the disposal of its appeal (Ext.P3) pending before the Commissioner of Income Tax (Appeals) (second respondent). The appeal was filed against an assessment order (Ext.P1) passed by the Income Tax Officer, Ward-2(1) (first respondent). The petitioner sought a directive for the expeditious disposal of the appeal. The assessment year(s) are not specified in the judgment. The procedural history involves the filing of an appeal before the CIT(A) and the subsequent filing of the writ petition due to the alleged delay in disposal.

What were the issues?

1. Whether the High Court should issue a writ of mandamus directing the Commissioner of Income Tax (Appeals) to dispose of the pending appeal filed by the petitioner? Assessee's contention: The petitioner sought a direction for the timely disposal of its appeal before the second respondent, implying that there has been an undue delay. The petitioner also sought a direction to dispose of the appeal without insisting on the payment of 20% of the tax demanded, citing a circular from 2017. Revenue's contention: The judgment records that the learned counsel for both sides were heard, but specific arguments from the revenue are not detailed. However, the court's direction to keep recovery proceedings in abeyance till a decision is taken on the appeal suggests that the revenue's position might have been considered in relation to the pending appeal.

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 AMIT RAWAL MONDAY, THE 15TH DAY OF JUNE 2020 / 25TH JYAISHTA, 1942 WP(C).No.11637 OF 2020(D) PETITIONER/S: SPACE CENTRE EMPLOYEES CO-OPERATIVE SOCIETY LTD. REPRESENTED BY ITS SECRETARY-IN-CHARGE, VSSC ISRO POST,THIRUVANANTHAPURAM DISTRICT, PIN-695022. BY ADV. SRI.T.R.HARIKUMAR RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD-2 (1) WARD-2(1),OFFICE OF THE INCOME TAX OFFICER,AAYAKAR BHAVAN,KOWDIAR.P.O, THIRUVANANTHAPURAM DISTRICT-695003. 2 THE COMMISSIONER OF INCOM TAX (APPEALS), AAYAKAR BHAVAN,KOWDIAR, THIRUVANANTHAPURAM-695003. 3 THE KERALA STATE CO-OPERATIVE BANK(FORMERLY KNOWN AS THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK) THIRUVANANTHAPURAM DISTRICT OFFICE, EAST FORT,THIRUVANANTHAPURAM,PIN-695001, REPRESENTED BY ITS GENERAL MANAGER-IN-CHARGE. OTHER PRESENT: SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.06.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.11637 OF 2020(D) 2 JUDGMENT Dated this the 15th day of June 2020 Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal preferred before the second 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 second 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. Sd/- AMIT RAWAL JUDGE Jm/ WP(C).No.11637 OF 2020(D) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 17.12.2019. EXHIBIT P2 A TRUE COPY OF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 17.12.2019. EXHIBIT P3 A TRUE COPY OF THE ONLINE APPEAL DATED 31.12.2019,ALONG WITH GROUNDS OF APPEAL FILED BEFORE THE 2ND RESPONDENT,AGAINST EXT

EXHIBIT P4 AOF THE STAY PETITION FILED BY THE PETITIONER IN EXT.P3 APPEAL DATED 05.02.2020. EXHIBIT P5 AOF THE JUDGMENT DATED 19.07.2019 IN W.A.NO.1639 OF 2019. EXHIBIT P6 AOF THE JUDGMENT DATED 17.02.2020 IN WP(C)NO.4433 OF 2020.

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