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

WP(C)/10793/2020HC KeralaKLHC01027843202002 June 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 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 a period of 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 affording an opportunity of hearing to the petitioner. Crucially, the Court directed that the appeal should not be insisted upon for payment of 20% of the tax demanded, as per a circular of 2017. Until a decision is taken on the appeal, recovery proceedings pursuant to the assessment order shall be kept in abeyance. The principle is that appellate authorities should dispose of appeals within a reasonable time, and recovery can be stayed pending such disposal, with specific consideration for pre-deposit norms.

What were the facts?

The petitioner, The Vilvattom Service Co-operative Bank Ltd., filed an appeal (Ext.P3) before the Commissioner of Income Tax (Appeals) against an assessment order (Ext.P1) passed by the Income Tax Officer, Ward - 2(3), Thrissur. The petitioner approached the High Court of Kerala seeking a direction for the disposal of this pending appeal. The assessment year(s) are not specified. The amount in dispute is not stated. The procedural history involves the filing of the appeal before the first respondent and a subsequent writ petition seeking its expeditious disposal.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the pending appeal filed by the petitioner? The petitioner argued for a direction to the first respondent to dispose of the appeal expeditiously. The revenue did not record any specific arguments in the judgment. The core issue is the delay in the appellate process and the petitioner's right to a timely decision.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.10793 OF 2020

W.A.NO.1536 OF 2019

Read from the judgment's own cause title. This page is filed under one of them.

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL TUE AY, THE 02ND DAY OF JUNE 2020 / 12TH JYAISHTA, 1942 WP(C).No.10793 OF 2020 PETITIONER/S: THE VILVATTOM SERVICE CO-OPERATIVE BANK LTD. NO.337, P. O. KURICHIKKARA, THRISSUR - 680 028, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.P.C.SASIDHARAN SRI.K.S.ANIL RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, S. T. NAGAR, THRISSUR - 680 001. 2 THE INCOME TAX OFFICER WARD - 2(3), THRISSUR, AAYAKAR BHAVAN, SHAKTHANTHAMPOURAN NAGAR, THRISSUR - 680 001. OTHER PRESENT: SRI CHRISTOPHER ABRAHAM SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.06.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.10793 OF 2020 2 JUDGMENT Dated this the 2nd day of June 2020 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 sab JUDGE

WP(C).No.10793 OF 2020 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE RELEVANT PAGES OF THE ASSESSMENT ORDER DATED 27.11.2017. EXHIBIT P2 TRUE COPY OF THE DEMAND NOTICE DATED 27.11.2017. EXHIBIT P3 TRUE COPY OF THE APPEAL DATED 3.1.2018. EXHIBIT P4 TRUE COPY OF THE ORDER DATED 10.3.2020. EXHIBIT P5 TRUE COPY OF THE STAY PETITION DATED 13.3.2020. EXHIBIT P6 TRUE COPY OF THE JUDGMENT DATED 1.7.2019 IN W.A.NO.1536 OF 2019.

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