THE VELUR SERVICE CO-OPERATIVE BANK LTD vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/8644/2020HC KeralaKLHC01022258202010 June 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the Commissioner of Income Tax (Appeals) to decide the appeal (Ext.P3) within three months from the date of receipt of a copy of the judgment. This decision is to be made in accordance with the law, after providing the petitioner an opportunity of hearing. Crucially, the Court directed that the appeal should be decided without insisting on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The Court did not decide on the merits of the appeal itself, but rather on the procedural aspect of its disposal.

What were the facts?

The petitioner, The Velur Service Co-operative Bank Ltd, filed a writ petition before the High Court of Kerala seeking a direction to dispose of an appeal (Ext.P3) filed before the Commissioner of Income Tax (Appeals). This appeal was against an assessment order (Ext.P1) passed by the Income Tax Officer, Ward-2, Guruvayur. The petitioner sought a timely decision on their appeal. The assessment year(s) are not specified in the judgment. The procedural history involves the filing of the appeal before the first respondent and the subsequent writ petition seeking its disposal.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of the pending appeal filed by the petitioner? The petitioner's contention is that they have filed an appeal before the Commissioner of Income Tax (Appeals) and are seeking a direction for its expeditious disposal. The petitioner relies on the general principle of timely resolution of tax disputes. The revenue's contentions are not recorded in the judgment. The judgment does not explicitly state any arguments made by the revenue regarding the disposal of the appeal or the conditions for its disposal.

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 WEDNESDAY, THE 10TH DAY OF JUNE 2020 / 20TH JYAISHTA, 1942 WP(C).No.8644 OF 2020(E) PETITIONER: THE VELUR SERVICE CO-OPERATIVE BANK LTD NO. 465, VELUR P.O. THRISSUR DISTRICT 680 601, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.P.C.SASIDHARAN RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) (APPEALS), AAYAKAR BHAVAN, S.T. NAGAR, THRISSUR 680 001. 2 THE INCOME TAX OFFICER, WARD-2, GURUVAYUR, OFFICE OF THE INCOME TAX OFFICER, WEST NADA, GURUVAYOOR 680 101. SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10.06.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.8644 OF 2020(E) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal preferred before the first 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 first 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 dlk/10.06.2020

WP(C).No.8644 OF 2020(E) 3 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER DATED 13/12/2017 ALONG WITH COMPUTATION SHEET. EXHIBIT P2OF THE DEMAND NOTICE DATED 13/12/2017. EXHIBIT P3OF THE APPEAL DATED 16/1/2018. EXHIBIT P4OF THE ORDER DATED 23/8/2019. EXHIBIT P5OF THE STAY PETITION DATED 30/8/2019. EXHIBIT P6OF ASSESSMENT ORDER DATED 13/12/2017 ALONG WITH COMPUTATION SHEET. EXHIBIT P7OF THE DEMAND NOTICE DATED 13/12/2017. EXHIBIT P8OF THE APPEAL DATED 10/01/2018. EXHIBIT P9OF THE ORDER DATED 23/8/2019. EXHIBIT P10OF THE STAY PETITION DATED 30/8/2019. EXHIBIT P11OF THE ASSESSMENT ORDER DATED 8/11/2019 ALONG WITH COMPUTATION SHEET. EXHIBIT P12OF THE DEMAND NOTICE DATED 8/11/2019. EXHIBIT P13OF THE APPEAL DATED 30/11/2019. EXHIBIT P14OF THE ORDER DATED 17/1/2020. EXHIBIT P15OF THE STAY PETITION DATED 24/1/2020. WP(C).No.8644 OF 2020(E) 4 EXHIBIT P16OF THE ASSESSMENT ORDER DATED 25/11/2019. EXHIBIT P17OF THE DEMAND NOTICE DATED 25/11/2019. EXHIBIT P18OF THE APPEAL DATED 4/12/2019. EXHIBIT P19OF THE ORDER DATED 17/1/2020. EXHIBIT P20OF THE STAY PETITION DATED 24/1/2020. EXHIBIT P21OF THE JUDGMENT DATED 1/7/2019 IN W.A. NO. 1536 OF 2019.

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