THE OTTOOR SERVICE CO-OPERATIVE BANK LTD. NO. 976 vs. THE INCOME TAX OFFICER

WP(C)/8003/2020HC KeralaKLHC01020745202016 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) in accordance with the law. The Commissioner was instructed to provide an opportunity of hearing to the petitioner before making a decision. The court specified that the decision should be made within three months from the date of receipt of a copy of the judgment. Crucially, the court directed that the Commissioner 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 pursuant to the assessment order are to be kept in abeyance. No issue was expressly left undecided.

What were the facts?

The petitioner, The Ottoor Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction to the Commissioner of Income Tax (Appeals) to dispose of its pending appeal and stay petition. The appeal was against an assessment order passed by the Income Tax Officer. The petitioner sought a directive for the Commissioner to decide the appeal within a specified timeframe and to keep recovery proceedings in abeyance until then. The court heard both parties before delivering its judgment.

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 against the assessment order. Assessee's Contention: The petitioner sought a direction for the expeditious disposal of its appeal and stay petition by the second respondent (Commissioner of Income Tax (Appeals)). Revenue's Contention: The judgment does not record any specific contentions raised by the revenue. However, the court's direction implies that the revenue would be bound by the outcome of the appeal and the court's order regarding the stay of recovery proceedings.

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.8003 OF 2020(A) PETITIONER: THE OTTOOR SERVICE CO-OPERATIVE BANK LTD. NO. 976 REPRESENTED BY ITS SECRETARY, CHENNANKODE, VADASSERIKONAM P.O., VARKALA, THIRUVANANTHAPURAM DISTRICT-695 143. BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENTS: 1 THE INCOME TAX OFFICER WARD-2(5), OFFICE OF THE INCOME TAX OFFICER, AAYAKAR BHAVAN, KOWDIAR P.O., THIRUVANANTHAPURAM DISTRICT-695 003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM-695 003. 3 THE GENERAL MANAGER THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK, HEAD OFFICE, EAST FORT, THIRUVANANTHAPURAM, PIN-695 001. SRI CHRISTOPHER ABRAHAM SC SRI THOMAS ABRAHAM 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.8003/2020 2

JUDGMENT The petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal and Ext.P4 stay petition preferred before the second respondent/ Commissioner of Income Tax (Appeals) against Ext.P1 assessment order. Having heard the learned counsel on both sides, the writ petition is disposed of with a direction to the second 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.8003/2020 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 18.12.2019. EXHIBIT P2 A TRUE COPY OF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 18.12.2019. EXHIBIT P3 A TRUE COPY OF THE ONLINE APPEAL DATED 26.12.2019, FILED AGAINST EXT.P1 ASSESSMENT ORDER, BEFORE THE 2ND RESPONDENT. EXHIBIT P4 A TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER IN EXT-P3 APPEAL DATED 7.1.2020. EXHIBIT P5 A TRUE COPY OF THE JUDGMENT DATED 19.7.2019 IN W.A.NO.1639 OF 2019. EXHIBIT P6 A TRUE COPY OF THE JUDGMENT DATED 17.2.2020 IN WP(C) NO.4433 OF 2020.

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