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

WP(C)/8585/2020HC KeralaKLHC01022001202018 March 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala disposed of the writ petition by directing the Commissioner of Income Tax (Appeals) to take a decision on the pending appeals (Exts.P3, P8, P13, P18, P23, and P28) in accordance with law. The court mandated that an opportunity of hearing be afforded to the petitioner. Crucially, the court directed that the decision be taken within three months from the receipt of a copy of the judgment, without insisting on the payment of 20% of the tax demanded, as per a circular of 2017. Furthermore, the court ordered that recovery proceedings pursuant to the assessment orders be kept in abeyance until a decision is taken on the appeals. The ratio decidendi is that appellate authorities should dispose of pending matters expeditiously and that recovery proceedings can be stayed pending appeal, especially when a circular provides for such leniency.

What were the facts?

The petitioner, Kottappady Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction for the disposal of several appeals and interim applications pending before the Commissioner of Income Tax (Appeals). These appeals and applications relate to assessment orders for the assessment years 2010-11, 2012-13, 2016-17, and 2017-18. The petitioner sought a directive for the Commissioner to decide these matters expeditiously.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the pending appeals and interim applications filed by the petitioner? Assessee's Contention: The petitioner bank sought a direction for the expeditious disposal of its appeals and interim applications pending before the Commissioner of Income Tax (Appeals). The petitioner also sought a direction to keep recovery proceedings in abeyance until a decision was taken on the appeals. Revenue's Contention: The judgment does not record any specific contentions raised by the revenue. However, the court's direction implies that the revenue would be bound by the outcome of the appeals.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

WP(C).No.8585 OF 2020(W) 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL WEDNESDAY, THE 18TH DAY OF MARCH 2020 / 28TH PHALGUNA, 1941 WP(C).No.8585 OF 2020(W) PETITIONER/S: THE KOTTAPPADY SERVICE CO-OPERATIVE BANK LTD NO.210, THAMBURANPADY, KOTTAPADY, THRISSUR DIST - 680 505, 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 -1 AND TPS, GURUVAYUR, OFFICE OF THE INCOME TAX OFFICER, WEST NADA, GURUVAYOOR - 680 101. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.8585 OF 2020(W) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Exts.P3, P8, P13, P18, P23, and P28 appeals and Exts.P5, P10, P15, P20, P25 and P30 and P5(a) interim applications preferred before the first respondent/Commissioner of Income Tax (Appeals) against the assessment orders pertaining to the years, 2010-11, 2012-13, 2016-17 and 2017-18

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 appeals, Exts.P3, P8, P13, P18, P23, and P28, 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 JUDGE JM/

WP(C).No.8585 OF 2020(W) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER DATED 19.11.2018 ALONG WITH COMPUTATION SHEET. EXHIBIT P2OF THE DEMAND NOTICE DATED 20.11.2018. EXHIBIT P3OF THE APPEAL DATED 22.12.2018. EXHIBIT P4OF THE ORDER DATED 2.7.2019. EXHIBIT P5OF THE STAY PETITION DATED 16.7.2019. EXHIBIT P6OF ASSESSMENT ORDER DATED 21.11.2018 ALONG WITH COMPUTATION SHEET. EXHIBIT P7OF THE DEMAND NOTICE DATED 21.11.2018. EXHIBIT P8OF THE APPEAL DATED 19.12.2018. EXHIBIT P9OF THE ORDER DATED 2.7.2019. EXHIBIT P10OF THE STAY PETITION DATED 16.7.2018. EXHIBIT P11OF THE ASSESSMENT ORDER DATED 20.11.2019 ALONG WITH COMPUTATION SHEET. EXHIBIT P12OF THE DEMAND NOTICE DATED 20.11.2019. EXHIBIT P13OF THE APPEAL DATED 16.12.2019. EXHIBIT P14OF THE ORDER DATED 17.1.2020. EXHIBIT P15OF THE STAY PETITION DATED 28.1.2019. EXHIBIT P16OF THE ASSESSMENT ORDER DATED 21.11.2019. EXHIBIT P17OF THE DEMAND NOTICE DATED 21.11.2019. EXHIBIT P18OF THE APPEAL DATED 21.12.2019. WP(C).No.8585 OF 2020(W) 4 EXHIBIT P19OF THE ORDER DATED 17.1.2020. EXHIBIT P20OF THE STAY PETITION DATED 28.1.2020. EXHIBIT P21OF THE JUDGMENT DATED 1.7.2019 IN W.A.NO.1536 OF 2019.

Recent GST High Court judgments

Search GST case law →