THE VELLATTANJUR SERVICE CO-OPERATIVE BANK vs. THE COMMISSIONER OF INCOME TAX APPEALS

WP(C)/10615/2020HC KeralaKLHC01027500202029 May 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 pending before him in accordance with the law. The Court also mandated that an opportunity of hearing be provided to the petitioner. The decision on the appeal was to be taken within a period of three months from the date of receipt of a copy of the judgment. Crucially, the Court directed that the Commissioner should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, the Court ordered that recovery proceedings initiated pursuant to the assessment order should be kept in abeyance until a decision was taken on the appeal. No issue was expressly left undecided.

What were the facts?

The petitioner, The Vellattanjur Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction to the Commissioner of Income Tax (Appeals) to dispose of its appeal. The appeal was filed against an assessment order passed by the Income Tax Officer. The petitioner sought a direction for the disposal of the appeal within a specified period and also requested that recovery proceedings be kept in abeyance until a decision was taken on the appeal. The Court heard both parties before delivering its judgment.

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. 2. Whether recovery proceedings should be kept in abeyance pending the disposal of the appeal. Assessee's contentions: The petitioner sought a direction for the expeditious disposal of its appeal and requested that recovery proceedings be stayed. The petitioner relied on a circular of 2017 regarding the payment of 20% of the tax demanded, implying that this condition should not be insisted upon for the disposal of the appeal. Revenue's contentions: The judgment does not record any specific contentions made by the revenue.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL FRIDAY, THE 29TH DAY OF MAY 2020 / 8TH JYAISHTA, 1942 WP(C).No.10615 OF 2020(B) PETITIONER/S: THE VELLATTANJUR SERVICE CO-OPERATIVE BANK LTD. NO. 3906, VELLATTANJOOR P.O. THRISSUR 680 601, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.P.C.SASIDHARAN RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX APPEALS AAYAKAR BHAVANA, S.T. NAGAR, THRISSUR 680 001. 2 THE INCOME TAX OFFICER, WARD-2, GURUVAYOOR, CITY PLAZA, WEST NADA, GURUVAYUR 680 101. OTHER PRESENT: SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.05.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.10615 OF 2020(B) 2

JUDGMENT 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. AMIT RAWAL JUDGE nak

WP(C).No.10615 OF 2020(B) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE RELEVANT PAGES OF THE ASSESSMENT ORDER DATED 13/12/2018 ALONG WITH COMPUTATION STATEMENT FOR THE YEAR 2016-17. EXHIBIT P2OF THE DEMAND NOTICE DATED 13/12/2018. EXHIBIT P3OF THE APPEAL DATED 11/01/2019. EXHIBIT P4OF THE ORDER DATED 11/02/2019. EXHIBIT P5OF THE STAY PETITION DATED 11/02/2019. EXHIBIT P6OF THE JUDGMENT DATED 1/7/2019 IN W.A. NO. 1536 OF 2019.

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