THE CHETHALLUR SERVICE CO-OPERATIVE BANK LTD. NO. F 1462, vs. THE INCOME TAX OFFICER,

WP(C)/8657/2020HC KeralaKLHC01022298202026 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 decide the appeal (Ext.P3) in accordance with law. The Tribunal was instructed to afford an opportunity of hearing to the petitioner (assessee) and 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 issued in 2017. Furthermore, all recovery proceedings initiated pursuant to the appellate order were to be kept in abeyance until the Tribunal took a decision on the appeal. The core principle established is that procedural directions can be issued to quasi-judicial authorities to ensure timely disposal of appeals, and interim relief can be granted to protect the assessee's interests pending such disposal, considering relevant circulars.

What were the facts?

The petitioner, The Chethallur Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction for the disposal of its appeal (Ext.P3) pending before the Income Tax Appellate Tribunal (third respondent). The appeal was filed against an appellate order (Ext.P2) passed by the Commissioner of Income Tax (Appeals). The petitioner sought a direction for the Tribunal to decide the appeal within a specified period and to keep recovery proceedings in abeyance until a decision was taken. The revenue was represented by the Income Tax Officer and the Commissioner of Income Tax (Appeals). The assessment years are not specified in the judgment.

What were the issues?

1. Whether the High Court should direct the Income Tax Appellate Tribunal to dispose of the pending appeal filed by the assessee. (Question of procedure) Assessee's Contention: The assessee sought a direction for the expeditious disposal of its appeal pending before the Tribunal and for a stay on recovery proceedings. The assessee also sought to avoid payment of 20% of the tax demanded as a pre-condition for hearing the appeal, relying on a circular from 2017. Revenue's Contention: The judgment does not record any specific contentions raised by the revenue. However, the court's direction to dispose of the appeal 'in accordance with law' implies that the revenue's rights and obligations under the law would be considered.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL FRIDAY, THE 26TH DAY OF JUNE 2020 / 5TH ASHADHA, 1942 WP(C).No.8657 OF 2020(F) PETITIONER/S: THE CHETHALLUR SERVICE CO-OPERATIVE BANK LTD. NO. F 1462, CHETHALLUR, MANNARKKAD, PALAKKAD-678 583, REPRESENTED BY ITS SECRETARY, ASHRAF K., AGED 43, S/O. MUHAMMED. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD 4, AYAKAR BHAVAN, PALAKKAD-678 014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) THRISSUR-680 021. 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 26.06.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.8657 OF 2020(F) 2 JUDGMENT Dated this the 26th 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 appellate order Ext.P2. 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 appellate order shall be kept in abeyance. AMIT RAWAL JUDGE nak

WP(C).No.8657 OF 2020(F) 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE IST RESPONDENT FOR THE YEAR 2016-17 DATED 26.12.2018. EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2016-17 DATED 17.2.2020. EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT 2016-17 DATED 14.3.2020. EXHIBIT P4 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DATED 14.3.2020.

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