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

WP(C)/7989/2020HC KeralaKLHC01020746202016 March 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition with a direction to the Commissioner of Income Tax (Appeals) to decide the appeal in accordance with law. This decision is to be made after providing the petitioner an opportunity of hearing, within three months from the date of receiving a copy of the judgment. Crucially, the court directed that the disposal should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Until the appeal is decided, recovery proceedings initiated based on the assessment order are to be kept in abeyance. The court did not decide on the merits of the appeal itself, but rather on the procedural aspect of its timely disposal.

What were the facts?

The petitioner, Pattanakkad Service Co-operative Bank Limited, filed a writ petition before the High Court of Kerala seeking a direction to the Commissioner of Income Tax (Appeals) to dispose of its appeal and stay petition. The appeal was filed against an assessment order passed by the Income Tax Officer, Ward 5, Alappuzha. The petitioner sought a direction for the timely disposal of these pending matters before the first respondent.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of the pending appeal and stay petition filed by the petitioner? Assessee's Contention: The petitioner bank sought a direction for the expeditious disposal of its appeal and stay petition pending before the Commissioner of Income Tax (Appeals). Revenue's Contention: The judgment does not record any specific contentions from the revenue's side regarding the disposal of the appeal. The court heard both sides.

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 MONDAY, THE 16TH DAY OF MARCH 2020 / 26TH PHALGUNA, 1941 WP(C).No.7989 OF 2020(W) PETITIONER: PATTANAKKAD SERVICE CO-OPERATIVE BANK LIMITED REPRESENTED BY ITS SECRETARY, PATTANAKAD P.O., CHERTHALA, ALAPPUZHA-690531. BY ADVS. SRI.V.G.ARUN (K/795/2004) SMT.V.JAYA RAGI SRI.R.HARIKRISHNAN (KAMBISSERIL) SRI.NEERAJ NARAYAN RESPONDENTS: 1 COMMISSIONER OF INCOME TAX (APPEALS) BAKER HILLS, KOTTAYAM-686002. 2 INCOME TAX OFFICER, WARD 5, ALAPPUZHA, ARATTUKULANKARA COMPLEX, A.N.PURAM, ALAPPUZHA-688011. SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.7989/2020 2

JUDGMENT The petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal and Ext.P5 stay petition preferred before the first respondent/ Commissioner of Income Tax (Appeals) against Ext.P2 assessment order.

Having heard the learned counsel on both sides, this 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 JUDGE csl

W.P.(C) No.7989/2020 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 A TRUE PHOTOCOPY OF THE RETURN OF INCOME DATED 30.03.2018 FOR THE ASSESSMENT YEAR 2017-18. EXHIBIT P2 A TRUE PHOTOCOPY OF THE ASSESSMENT ORDER DATED 26.12.2019 ALONG WITH THE DEMAND NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 26.12.2019 ISSUED FOR THE YEAR 2017-18 BY THE 2ND RESPONDENT. EXHIBIT P3 A TRUE PHOTOCOPY OF THE APPEAL DATED 23.01.2020 FILED FOR THE YEAR 2017-18 BEFORE THE 1ST RESPONDENT. EXHIBIT P4 A TRUE PHOTOCOPY OF THE ORDER DATED 06.02.2020 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P5 A TRUE PHOTOCOPY OF THE APPLICATION FOR STAY DATED 10.02.2020 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT.

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