THE CHAVAKKAD FIRKA CO-OPERATIVE RURAL BANK LTD.NO.F.1250, vs. THE COMMISSIONER OF INCOME TAX(APPEALS),

WP(C)/8170/2020HC KeralaKLHC01021177202017 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 appeals (Exts.P3 and P8) 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 providing an opportunity of hearing to the petitioner. Crucially, the court directed that the Commissioner should not insist on the payment of 20% of the tax demanded, referencing 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 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, The Chavakkad Firka Co-operative Rural Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction for the disposal of their appeals (Exts.P3 and P8) and interim applications (Exts.P5 and P10) pending before the Commissioner of Income Tax (Appeals). These appeals were filed against assessment orders (Exts.P1 and P6) passed by the Income Tax Officer. The petitioner sought a directive for the expeditious disposal of these pending matters.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of the pending appeals and interim applications filed by the petitioner? (Question of procedure/direction) Assessee's Contention: The petitioner bank argued that their appeals and interim applications were pending before the first respondent and sought a direction for their disposal. The petitioner 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 raised by the revenue. However, the court's direction implies that the revenue's position or the standard procedure might have involved insisting on the 20% tax payment.

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.8170 OF 2020(U) PETITIONER/S: THE CHAVAKKAD FIRKA CO-OPERATIVE RURAL BANK LTD.NO.F.1250, CHAVAKKAD.P.O., THRISSUR-680506, 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 1 AND TPS, GURUVAYUR, OFFICE OF THE INCOME TAX OFFICER, WEST NADA, GURUVAYOOR-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.8170 OF 2020(U) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Exts.P3 and P8 appeals and Exts.P5 and P10 interim

applications

preferred

before

the first respondent/Commissioner of Income Tax (Appeals) against the assessment orders Exts.P1 and P6. 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 and P8 appeals 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.8170 OF 2020(U) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER ALONG WITH COMPUTATION STATEMENT DATED 5.12.2019. EXHIBIT P2OF THE DEMAND NOTICE DATED 5.12.2019. EXHIBIT P3OF THE APPEAL DATED 27.12.2019. EXHIBIT P4OF THE ORDER DATED 17.1.2020. EXHIBIT P5OF THE STAY PETITION DATED 30.1.2020. EXHIBIT P6OF THE ASSESSMENT ORDER ALONG WITH COMPUTATION SHEET DATED 5.12.2019. EXHIBIT P7OF THE DEMAND NOTICE DATED 5.12.2019. EXHIBIT P8OF THE APPEAL DATED 1.1.2020. EXHIBIT P9OF THE ORDER DATED 17.1.2020. EXHIBIT P10OF THE STAY PETITION DATED 30.1.2020. EXHIBIT P11OF THE JUDGMENT DATED 1.7.2019 IN W.A.NO.1536 OF 2019.

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