THE VILVATTOM SERVICE CO-OPERATIVE BANK LTD NO.337 vs. THE COMMISSIONER OF INCOME TAX APPEALS

WP(C)/10792/2020HC KeralaKLHC01027841202002 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 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 decision should be made 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 principle established is that appellate authorities should dispose of appeals expeditiously and that interim relief regarding recovery can be granted pending appeal disposal, especially when a relevant circular supports such a stance.

What were the facts?

The petitioner, The Vilvattom Service Co-operative Bank Ltd. No. 337, filed a writ petition before the High Court of Kerala seeking a direction to dispose of its appeal (Ext.P3) pending before the Commissioner of Income Tax (Appeals). This appeal was filed against an assessment order (Ext.P1). The petitioner was represented by its Secretary and the respondents were the Commissioner of Income Tax (Appeals) and the Income Tax Officer, Ward 2(3), Thrissur. The assessment year(s) are not specified in the judgment. The dispute concerns the appeal against the assessment order.

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 that they have filed an appeal before the Commissioner of Income Tax (Appeals) and sought a direction for its expeditious disposal. The revenue's contentions are not recorded in the judgment. The judgment does not explicitly name any specific provisions of the Income Tax Act that were argued or relied upon by either party, other than the general context of an appeal against an assessment order.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.10792 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.10792 OF 2020 PETITIONER/S: THE VILVATTOM SERVICE CO-OPERATIVE BANK LTD NO.337 P.O KURICHIKKARA, THRISSUR 680 028 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 2(3), THRISSUR, AAYAKAR BHAVAN, SHAKTHANTHAMOURAN 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:

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. sab AMIT RAWAL JUDGE

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE RELEVANT PAGES OF THE ASSESSMENT ORDER DATED 08/12/2017 EXHIBIT P2 TRUE COPY OF THE DEMAND NOTICE DATED 8/12/2017 EXHIBIT P3 TRUE COPY OF THE APPEAL DATED 19/1/2018 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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