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

WP(C)/10752/2020HC KeralaKLHC01027764202002 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.P2) in accordance with law. This decision is to be made after affording an opportunity of hearing to the petitioner (The Thalore Service Co-operative Bank Ltd). The appellate authority is to take a decision 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, 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 ratio is that appellate authorities should dispose of pending appeals expeditiously, and recovery can be stayed pending such disposal, especially when a relevant circular permits waiver of pre-deposit conditions.

What were the facts?

The petitioner, The Thalore Service Co-operative Bank Ltd, filed a writ petition before the High Court of Kerala seeking a direction to dispose of their appeal (Ext.P2) 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 (first respondent). The petitioner sought a directive for the appellate authority to decide their appeal expeditiously. The assessment year(s) are not specified in the judgment. The procedural history involves the filing of an appeal before the CIT(A) and a 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 assessee. Assessee's contention: The assessee seeks a direction for the expeditious disposal of their appeal before the CIT(A). They rely on a circular of 2017 which, according to the judgment, allows for the appeal to be decided without insisting on the payment of 20% of the tax demanded. Revenue's contention: The judgment records that the revenue was heard through their standing counsel, but their specific contentions are not detailed in the provided text.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.10752 OF 2020

WP(C)NO.4366/2020

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.10752 OF 2020(T) PETITIONER/S: THE THALORE SERVICE CO-OPERATIVE BANK LTD 1-269, THALORE, THRISSUR-680306, REPRESENTED BY ITS SECRETARY, T.V.SHAJIKUMAR, AGED 46, VELAYUDHAN BY ADV. SRI.V.M.HARI SANKAR RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 2 (5), AAYAKAR BHAVAN, THRISSUR-680001 2 THE COMMISSIONER OF INCOME TAX(APPEALS), SAKTHAN NAGAR, THRISSUR-680021 OTHER PRESENT: SRI JOSE JOSEPH 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.10752 OF 2020(T) 2 JUDGMENT Dated this the 2nd day of June 2020 Petitioner has approached this Court seeking a direction to dispose of Ext.P2 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.P2 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.10752 OF 2020(T) 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2012-13 EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT 2012-13 EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT 2012-13 EXHIBIT P4 COPY OF JUDGMENT IN WP(C)NO.4366/2020 OF THIS HON'BLE COURT EXHIBIT P4(A) COPY OF JUDGMENT IN WP(C) TMP NO.261/2020 OF THIS HON'BLE COURT

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