THE KOONAMMOOCHI PEOPLES SERVICE CO-OPERATIVE BANK LTD. NO. 603 vs. THE COMMISSIONER OF INCOME TAX( APPEALS)

WP(C)/10944/2020HC KeralaKLHC01028160202004 June 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition with a direction to the first respondent, the Commissioner of Income Tax (Appeals), to decide the appeals (Exts.P3, P8, and P13) in accordance with the law. This decision is to be made after providing the petitioner an opportunity of hearing, within a period of three months from the date of receipt of a copy of the judgment. Crucially, the Court directed that the decision should be taken without insisting on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, the Court ordered that recovery proceedings pursuant to the assessment orders shall be kept in abeyance until a decision is taken on the appeals. The ratio decidendi is that appellate authorities should dispose of pending matters expeditiously and that recovery can be stayed pending such disposal, especially when a specific circular permits waiver of pre-deposit under certain circumstances.

What were the facts?

The petitioner, The Koonammoochi Peoples Service Co-operative Bank Ltd. No. 603, represented by its Secretary, filed a writ petition before the High Court of Kerala. The petition sought a direction for the Commissioner of Income Tax (Appeals) (the first respondent) to dispose of appeals and interim applications filed against assessment orders passed by the Income Tax Officer (the second respondent). The assessment orders were marked as Exts.P1, P6, and P11, and the appeals were Exts.P3, P8, and P13, with interim applications being Exts.P5, P10, and P15. The petitioner sought a speedy resolution of these pending matters.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of the pending appeals and interim applications filed by the petitioner? 2. Whether the recovery proceedings should be kept in abeyance until a decision is taken on the appeals? Assessee's Contentions: The petitioner, The Koonammoochi Peoples Service Co-operative Bank Ltd., sought a direction from the High Court to expedite the disposal of its appeals and interim applications before the Commissioner of Income Tax (Appeals). The petitioner implicitly argued that the delay in adjudication was causing prejudice and sought timely resolution. Revenue's Contentions: The judgment does not record any specific contentions made by the revenue (represented by the Commissioner of Income Tax (Appeals) and the Income Tax Officer).

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 04TH DAY OF JUNE 2020 / 14TH JYAISHTA, 1942 WP(C).No.10944 OF 2020(P) PETITIONER/S: THE KOONAMMOOCHI PEOPLES SERVICE CO-OPERATIVE BANK LTD. NO. 603 KOONAMMOOCHI P.O., THRISSUR - 680 504, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.P.C.SASIDHARAN RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX( APPEALS) AAYAKAR BHAVAN, S.T.NAGAR, THRISSUR - 680 001. 2 THE INCOME TAX OFFICER WARD 1 AND TPS, GURUVAYOOR,OFFICE OF THE INCOME TAX OFFICER, WEST NADA, GURUVAYOOR, THRISSUR - 680 101. OTHER PRESENT: SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.06.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

JUDGMENT Dated this the 4th day of June 2020 Petitioner has approached this Court seeking a direction to dispose of Exts.P3, P8 and P13 appeals and Exts.P5, P10 and P15 interim

applications

preferred

before

the first respondent/Commissioner of Income Tax (Appeals) against the assessment orders Exts.P1, P6 and P11. 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 Exts.P3, P8 and P13 appeals 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 orders shall be kept in abeyance. AMIT RAWAL, JUDGE Sab

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 1/12/2017. EXHIBIT P2 TRUE COPY OF THE DEMAND NOTICE DATED 01/12/2017. EXHIBIT P3 TRUE COPY OF THE APPEAL DATED 2/1/2018. EXHIBIT P4 TRUE COPY OF THE ORDER DATED 2/7/2019. EXHIBIT P5 TRUE COPY OF THE STAY PETITION DATED 12/7/2019. EXHIBIT P6 TRUE COPY OF THE ASSESSMENT ORDER DATED 19/11/2018. EXHIBIT P7 TRUE COPY OF THE DEMAND NOTICE DATED 20/11/2018. EXHIBIT P8 TRUE COPY OF THE APPEAL DATED 15/12/2018. EXHIBIT P9 TRUE COPY OF THE ORDER DATED 2/7/2019. EXHIBIT P10 TRUE COPY OF THE STAY PETITION DATED 12/7/2019. EXHIBIT P11 TRUE COPY OF THE ASSESSMENT ORDER DATED 21/11/2018. EXHIBIT P12 TRUE COPY OF THE DEMAND NOTICE DATED 21/11/2018. EXHIBIT P13 TRUE COPY OF THE APPEAL DATED 8/12/2018. EXHIBIT P14 TRUE COPY OF THE ORDER DATED 2/7/2019. EXHIBIT P15 TRUE COPY OF THE STAY PETITION DATED 12/7/2019. EXHIBIT P16 TRUE COPY OF THE JUDGMENT DATED 1/7/2019 IN W.A.NO.1536 OF 2019.

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