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

WP(C)/11270/2020HC KeralaKLHC01028978202009 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 take a decision on the petitioner's appeal (Ext.P3) in accordance with the law. This decision was to be made after affording an opportunity of hearing to the petitioner and within a period of three months from the date of receipt of a copy of the judgment. Crucially, the ITAT was directed not to insist on the payment of 20% of the tax demanded, as per a circular issued in 2017. Furthermore, recovery proceedings pursuant to the assessment order were to be kept in abeyance until a decision was taken on the appeal. The High 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, Kechery 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 an appeal (Ext.P3) filed by the petitioner. This appeal was against an assessment order (Ext.P1) passed by the Income Tax Officer. The petitioner sought a direction for the expeditious disposal of their appeal before the ITAT. The ITAT was directed to decide the appeal within three months from the date of receiving the judgment, without insisting on the payment of 20% of the tax demanded, as per a 2017 circular. Recovery proceedings were to be kept in abeyance until the appeal was decided.

What were the issues?

1. Whether the High Court should issue a writ of mandamus directing the Income Tax Appellate Tribunal to dispose of the pending appeal filed by the petitioner. Assessee's Contention: The petitioner sought a direction for the expeditious disposal of their appeal before the ITAT. The petitioner relied on a circular from 2017 which, according to them, allowed for the disposal of appeals without insisting on the payment of 20% of the tax demanded. Revenue's Contention: The judgment records no specific contention from the revenue side regarding the disposal of the appeal. The focus of the hearing was on the petitioner's request for a directive to the ITAT.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL TUE AY, THE 09TH DAY OF JUNE 2020 / 19TH JYAISHTA, 1942 WP(C).No.11270 OF 2020(G) PETITIONER/S: KECHERY SERVICE CO-OPERATIVE BANK LTD R-286, KECHERY P.O. THRISSUR 680 501, REPRESENTED BY ITS SECRETARY, P.A. DAVIS, AGED 44, S/O. P.D. ANTHONY. BY ADV. SRI.HARISANKAR V. MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 1 AND TPS, GURUVAYUR, THRISSUR 680 101. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN, THRISSUR 680 001. 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 09.06.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.11270 OF 2020(G) 2 JUDGMENT Dated this the 9th 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 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 sab JUDGE

WP(C).No.11270 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 DATED 29.11.2019. EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT FOR THE EYAR 2017-18 DATED 12.03.2020. EXHIBIT P3 COPY OF APPEAL FIELD BY THE PETITIONER BEFORE THE 3RD RESPONDENT 2017-18 DATED 01.05.2020. EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DATED 01.05.2020.

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