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

WP(C)/8677/2020HC KeralaKLHC01022256202011 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 pending appeals (Exts.P3, P6, and P11) 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 disposal should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment orders are to be kept in abeyance until a decision is taken on the appeals. The court did not decide on the merits of the appeals themselves, but rather on the procedural aspect of their timely disposal.

What were the facts?

The petitioner, Pazhuvil Service Co-operative Bank, filed a writ petition before the High Court of Kerala seeking a direction to the Commissioner of Income Tax (Appeals) (the first respondent) to dispose of pending appeals and stay petitions. These appeals were filed against assessment orders passed by the Income Tax Officer (the second respondent). The petitioner sought a direction for the timely disposal of appeals and stay petitions, which were pending before the first respondent. The assessment orders were marked as Exts.P1, P4, and P9, and the appeals were Exts.P3, P6, and P11, with stay petitions being Exts.P8 and P13.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of pending appeals and stay petitions filed by the assessee, Pazhuvil Service Co-operative Bank, against assessment orders passed by the Income Tax Officer. Assessee's Contention: The assessee sought a direction for the expeditious disposal of their pending appeals and stay petitions before the first respondent. They relied on a circular of 2017 regarding the payment of 20% of the tax demanded. Revenue's Contention: The judgment does not record any specific contentions made by the revenue. However, the court's direction implies that the revenue would be bound by the outcome of the appeals and the court's order regarding recovery proceedings.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL THUR AY, THE 11TH DAY OF JUNE 2020 / 21ST JYAISHTA, 1942 WP(C).No.8677 OF 2020(H) PETITIONER/S: THE PAZHUVIL SERVICE CO-OPERATIVE BANK NO.126,PAZHUVI WEST, THRISSUR-680564,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-680001. 2 THE INCOME TAX OFFICER, WARD 2 (5),THRISSUR,OFFICE OF THE INCOME TAX OFFICER,SHAKTHANTHAMPURAN NAGAR, THRISSUR-680001. OTHER PRESENT: SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.06.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.8677 OF 2020(H) 2 JUDGMENT Dated this the 11th day of June 2020 Petitioner has approached this Court seeking a direction to dispose of Exts.P3, P6 and P11 appeals and Exts.P8 and P13 stay

petitions

preferred

before

the first respondent/Commissioner of Income Tax (Appeals) against the assessment orders Exts.P1, P4 and P9. 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 Exts.P3, P6 and P11 appeals 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 orders shall be kept in abeyance. AMIT RAWAL sab JUDGE

WP(C).No.8677 OF 2020(H) 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 14/12/2018 WITH COMPUTATION STATEMENT EXHIBIT P2 TRUE COPY OF THE DEMAND NOTICE DATED 14/12/2018 EXHIBIT P3 TRUE COPY OF THE APPEAL DATED 17/1/2019 EXHIBIT P4 TRUE COPY OF THE ASSESSMENT ORDER DATED 8/11/2019 EXHIBIT P5 TRUE COPY OF THE DEMAND NOTICE DATED 8/11/2019 EXHIBIT P6 TRUE COPY OF THE APPEAL DATED 30/11/2019 EXHIBIT P7 TRUE COPY OF THE ORDER DATED 6/1/2020 EXHIBIT P8 TRUE COPY OF THE STAY PETITION DATED 15/1/2020 EXHIBIT P9 TRUE COPY OF THE ASSESSMENT ORDER DATED 13/11/2019 EXHIBIT P10 TRUE COPY OF THE DEMAND NOTICE DATED 13/11/2019 EXHIBIT P11 TRUE COPY OF THE APPEAL DATED 9/12/2019 EXHIBIT P12 TRUE COPY OF THE ORDER DATED 6/1/2020 EXHIBIT P13 TRUE COPY OF THE STAY PETITION DATED 15/1/2020 EXHIBIT P14 TRUE COPY OF THE JUDGMENT DATED 1/7/2019 IN W.A.NO.1536 OF 2019.

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