OYUR RESIDENCE WELFARE CO-OPERATIVE SOCIETY LTD. NO. Q. 1504 vs. THE INCOME TAX OFFICER

WP(C)/12359/2020HC KeralaKLHC01031518202023 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 filed by the petitioner in accordance with the law. This decision is to be made after providing the petitioner with an opportunity of being heard. 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 appellate authority should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Until a decision is reached on the appeal, recovery proceedings initiated pursuant to the assessment order are to be kept in abeyance. The ratio of this decision is that appellate authorities should dispose of pending appeals expeditiously and that recovery proceedings can be stayed pending such disposal, with specific conditions regarding pre-deposit potentially being waived based on extant circulars.

What were the facts?

The petitioner, Oyur Residence Welfare Co-operative Society Ltd., filed a writ petition before the High Court of Kerala seeking a direction for the disposal of an appeal filed before the Commissioner of Income Tax (Appeals). The appeal was against an assessment order passed by the Income Tax Officer. The petitioner sought a directive for the appellate authority to decide the appeal expeditiously. The assessment year(s) and the specific amount in dispute are not recorded in the judgment. The procedural history involves the filing of an appeal before the Commissioner of Income Tax (Appeals) against the assessment order.

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 petitioner? (Question of procedure/mandamus) The petitioner argued for a direction to the appellate authority to decide their appeal. The revenue's contentions are not explicitly recorded in the judgment. The judgment does not mention any specific authorities, circulars, or precedents relied upon by either party.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.12359 OF 2020

W.A.NO.1639 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 23RD DAY OF JUNE 2020 / 2ND ASHADHA, 1942 WP(C).No.12359 OF 2020(T) PETITIONER/S: OYUR RESIDENCE WELFARE CO-OPERATIVE SOCIETY LTD. NO. Q. 1504 REPRESENTED BY ITS SECRETARY, OYUR P. O., KOLLAM DISTRICT, PIN - 691 610. BY ADV. SRI.T.R.HARIKUMAR RESPONDENT/S: 1 THE INCOME TAX OFFICER OFFICE OF THE INCOME TAX OFFICER, KOLLAM RANGE, AAYAKAR BHAVAN, KARBALA JUNCTION, KOLLAM, PIN - 691 001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM - 695 003. 3 THE KERALA STATE CO-OPERATIVE BANK (FORMERLY KNOWN AS KOLLAM DISTRICT CO-OPERATIVE BANK), OYUR BRANCH, KOLLAM DISTRICT, PIN - 691 610, REPRESENTED BY ITS BRANCH MANAGER. OTHER PRESENT: SRI CHRISTOPHER ABRAHAM SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.06.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.12359 OF 2020(T) 2 JUDGMENT Dated this the 23rd day of June 2020 Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal preferred before the 2nd 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 2nd 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 JUDGE nak

WP(C).No.12359 OF 2020(T) 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 18.12.2019. EXHIBIT P2 A TRUE COPY OF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 18.12.2019. EXHIBIT P3 A TRUE COPY OF THE ONLINE APPEAL DATED 11.01.2020, FILED AGAINST EXT.P1 ASSESSMENT ORDER, BEFORE THE 2ND RESPONDENT. EXHIBIT P4 A TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER IN EXT-P3 APPEAL DATED 18.03.2020. EXHIBIT P5 A TRUE COPY OF THE NOTICE DATED 11.03.2020 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 226(3) OF THE INCOME TAX ACT. EXHIBIT P6 A TRUE COPY OF THE JUDGMENT DATED 19.07.2019 IN W.A.NO.1639 OF 2019. EXHIBIT P7 A TRUE COPY OF THE JUDGMENT DATED 17.02.2020 IN WP(C) NO.4433 OF 2020.

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