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

WP(C)/8193/2020HC KeralaKLHC01021187202017 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.P2) 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 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, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The judgment does not address the merits of the original assessment or the grounds of appeal.

What were the facts?

The petitioner, The Edarikode Service Co-operative Bank Limited, filed a writ petition before the High Court of Kerala seeking a direction for the disposal of its appeal (Ext.P2) pending before the Commissioner of Income Tax (Appeals). This appeal was filed against an assessment order (Ext.P1) passed by the Income Tax Officer, Ward 3, Tirur. The petitioner sought a timely decision on their appeal. The assessment year(s) and the specific amount in dispute are not recorded in the judgment. The procedural history involves the filing of the appeal before the first respondent and the subsequent writ petition to expedite its disposal.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of the pending appeal within a specified period? (Question of procedure/administrative direction) The petitioner argued for a direction to expedite the disposal of their appeal. The revenue did not record any specific arguments against this direction. The judgment does not explicitly state arguments made by either side regarding the merits of the appeal itself, focusing solely on the procedural aspect of its disposal. The petitioner relied on a circular of 2017 concerning the payment of 20% of the tax demanded, implying this might be a point of contention or a condition for appeal processing.

AI-generated summary — verify with the full judgment below

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.8193 OF 2020(Y) PETITIONER: THE EDARIKODE SERVICE CO-OPERATIVE BANK LIMITED NO.10739,EDARIKODE P.O., MALAPPURAM,PIN-676 501, REPRESENTED BY ITS SECRETARY BY ADV. SRI.O.D.SIVADAS RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, KOZHIKODE-673 001 2 THE INCOME TAX OFFICER, WARD 3, TIRUR, MALAPPURAM DISTRICT,PIN-676 001 SRI CHRISTOPHER ABRAHAM 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.8193 OF 2020(Y) 2 JUDGMENT Dated this the 17th day of March 2020 Petitioner has approached this Court seeking a direction to dispose of Ext.P2 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.P2 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 dlk/17.03.2020 JUDGE

WP(C).No.8193 OF 2020(Y) 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 24.12.2019 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2017-18 EXHIBIT P2 COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2017-18 DATED 22.01.2020

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