RAMAMANGALAM SERVICE CO-OPERATIVE BANK LTD. NO.2156 vs. INCOME TAX OFFICER

WP(C)/8580/2020HC KeralaKLHC01022096202018 March 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 (Ext.P3) within three months from the date of receipt of a copy of the judgment. The disposal should be in accordance with law and after affording an opportunity of hearing to the petitioner. Crucially, the Court directed that the appeal should be decided without insisting on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment order were ordered to be kept in abeyance until a decision is taken on the appeal. No issue was expressly left undecided.

What were the facts?

The petitioner, Ramamangalam Service Co-operative Bank Ltd., filed an appeal (Ext.P3) before the Commissioner of Income Tax (Appeals) (second respondent) against an assessment order (Ext.P1) passed by the Income Tax Officer (first respondent). The petitioner approached the High Court of Kerala by way of a writ petition seeking a direction for the expeditious disposal of their appeal. The assessment year(s) are not specified in the judgment. The amount in dispute is not stated. The procedural history involves the filing of an appeal before the first appellate authority, which remained undecided, leading to the present writ petition.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the pending appeal filed by the petitioner? (Question of procedure/administrative direction). The petitioner contended that their appeal has been pending and sought a direction for its disposal. The revenue did not record any specific arguments against the direction for disposal. The judgment does not explicitly name the provisions of the Income Tax Act that are the subject of the appeal itself, but the context implies a dispute arising from an assessment order.

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 WEDNESDAY, THE 18TH DAY OF MARCH 2020 / 28TH PHALGUNA, 1941 WP(C).No.8580 OF 2020(V) PETITIONER: RAMAMANGALAM SERVICE CO-OPERATIVE BANK LTD. NO.2156 RAMAMANGALAM P.O., ERNAKULAM-686 663, REPRESENTED BY ITS SECRETARY-IN- CHARGE. BY ADVS. SRI.C.A.JOJO SHRI.ARUN B. RESPONDENTS: 1 INCOME TAX OFFICER WARD-2, THODUPUZHA P.O. THODUPUZHA-685 584. 2 COMMISSIONER OF INCOME TAX (APPEALS)-2, OFFICE OF THE COMMISSIONER OF INCOME TAX, CENTRAL REVENUE TOWER, KOCHI-682 002. SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.8580/2020 2

JUDGMENT The petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal preferred before the second respondent/Commissioner of Income Tax (Appeals) against the assessment order Ext.P1. Having heard the learned counsel on both sides, the writ petition is disposed of with a direction to the second 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 csl

W.P.(C) No.8580/2020 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 19.12.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P2 A TRUE COPY OF THE DEMAND NOTICE U/S 156 DATED 19.12.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P3 A TRUE COPY OF THE APPEAL FOR AY 2017- 2018 BEFORE THE 2ND RESPONDENT DATED 10.1.2020 EXHIBIT P4 A TRUE COPY OF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 4.3.2020 FOR 20% OF TAX.

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