THE PARAVATTY SERVICE CO-OPERATIVE BANK LTD.NO.3918, vs. THE COMMISSIONER OF INCOME TAX (APPEALS),

WP(C)/8165/2020HC KeralaKLHC01021130202017 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. This decision is to be made in accordance with the law and after affording an opportunity of hearing to the petitioner. Crucially, the Court directed that the decision should be taken without insisting on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, all recovery proceedings pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The principle established is that appellate authorities should dispose of appeals expeditiously, and recovery can be stayed pending such disposal, especially when a relevant circular provides for such leniency.

What were the facts?

The petitioner, The Pavaratty Service Co-operative Bank Ltd., filed an appeal (Ext.P3) before the Commissioner of Income Tax (Appeals) against an assessment order (Ext.P1) passed by the Income Tax Officer, Ward 2, Guruvayoor. The petitioner approached the High Court of Kerala seeking a direction to expedite the disposal of this appeal. The assessment year(s) are not specified in the judgment. The procedural history involves the filing of the appeal and the subsequent writ petition seeking its disposal.

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? 2. Whether the recovery proceedings should be kept in abeyance until a decision is taken on the appeal? Assessee's Contention: The petitioner sought a direction for the timely disposal of its appeal before the Commissioner of Income Tax (Appeals). Revenue's Contention: The judgment records that the learned counsel for the revenue was heard. However, specific arguments made by the revenue are not detailed in the judgment.

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 TUESDAY, THE 17TH DAY OF MARCH 2020 / 27TH PHALGUNA, 1941 WP(C).No.8165 OF 2020(U) PETITIONER/S: THE PAVARATTY SERVICE CO-OPERATIVE BANK LTD.NO.3918, P.O PAVARATTY, THRISSUR 680 507, REP. BY ITS SECRETARY BY ADVS. SRI.P.C.SASIDHARAN SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT/S: 1. 2. THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, S.T.NAGAR, THRISSUR-680001. THE INCOME TAX OFFICER, WARD 2, GURUVAYOOR, OFFICE OF THE INCOME TAX OFFICER, WEST NADA, GURUVAYOOR, THRISSUR-680101. OTHER PRESENT: SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.8165 OF 2020(U) 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 sab JUDGE

WP(C).No.8165 OF 2020(U) 3 APPENDIX PETITIONER'S EXHIBITS: P1:OF THE ASSESSMENT ORDER DATED

10.11.

2019 P2:OF DEMAND NOTICE DATED 10.11.2019 P3:OF THE APPEAL DATED 7.12.2019 P4:OF THE ORDER DATED 17.1.2020 P5:OF THE STAY PETITION DATED 24.1.2020 P6:OF THE JUDGMENT DATED 1.7.2019 IN W.A 1536 OF 2019

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