THE MULLASSERY SERVICE CO-OPERATIVE BANK LTD.NO.R.280 vs. THE COMMISSIONER OF INCOME TAX(APPEALS),

WP(C)/8156/2020HC KeralaKLHC01021112202017 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, after providing the petitioner with an opportunity of hearing. Crucially, the court directed that the appeal should be decided without insisting on the payment of 20% of the tax demanded, as per a circular issued in 2017. Until a decision is reached on the appeal, recovery proceedings initiated pursuant to the assessment order are to be kept in abeyance. The ratio decidendi is that appellate authorities should dispose of pending appeals expeditiously, and recovery proceedings can be stayed pending such disposal, especially when a specific circular provides for waiver of pre-deposit conditions.

What were the facts?

The petitioner, The Mullassery Service Co-operative Bank Ltd., filed an appeal (Ext.P3) before the Commissioner of Income Tax (Appeals) against an assessment order (Ext.P1). The petitioner approached the High Court of Kerala seeking a direction for the disposal of this pending appeal. The assessment year(s) and the specific authority that passed the assessment order are not explicitly stated. The amount in dispute is also not mentioned. The procedural history involves the filing of the appeal before the CIT(A) and the subsequent writ petition seeking its expeditious disposal.

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? (Question of procedure). The petitioner seeks a direction for the timely disposal of their appeal. The revenue has not recorded any specific arguments in this regard, but by appearing before the court, they are implicitly subject to its directions. The court's consideration is on the administrative expediency and the petitioner's right to a speedy resolution of their tax grievance.

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.8156 OF 2020(T) PETITIONER/S: THE MULLASSERY SERVICE CO-OPERATIVE BANK LTD.NO.R.280 MULLASSERY, THRISSUR-680509, 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-68001. 2 THE INCOME TAX OFFICER, WARD 1 AND TPS, 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.8156 OF 2020(T) 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. sab AMIT RAWAL JUDGE

WP(C).No.8156 OF 2020(T) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER DATED 18.11.2019. EXHIBIT P2OF DEMAND NOTICE DATED 18.11.2019. EXHIBIT P3OF THE APPEAL DATED 17.12.2019. EXHIBIT P4OF THE ORDER DATED 14.01.2020. EXHIBIT P5OF THE STAY PETITION DATED 24.1.2020. EXHIBIT P6OF THE JUDGMENT DATED 1.7.2019 IN W.A.1536 OF 2019.

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