KADAVOOR SERVICE CO-OPERATIVE BANK LTD. NO. 1882 vs. INCOME TAX OFFICER

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WP(C)/8048/2020HC KeralaKLHC01020888202016 March 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the second respondent, the Commissioner of Income Tax (Appeals), to decide the appeal (Ext.P3) in accordance with law. This decision is to be made after providing the petitioner an opportunity of hearing. The disposal is to be completed within a period of three months from the date of receipt of a copy of the judgment. Crucially, the Court directed that the appeal should be decided without insisting on the payment of 20% of the tax demanded, referencing a circular of 2017. Furthermore, recovery proceedings pursuant to the assessment order (Ext.P1) are to be kept in abeyance until a decision is taken on the appeal. The principle established is that appellate authorities should dispose of appeals expeditiously and that recovery can be stayed pending appeal, especially when a circular provides for such leniency. No issue was expressly left undecided.

What were the facts?

The petitioner, Kadavoor 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 appeal. The appeal was filed against an assessment order passed by the Income Tax Officer. The petitioner had preferred the appeal as Ext.P3 against Ext.P1 assessment order. The Income Tax Officer is the first respondent and the Commissioner of Income Tax (Appeals) is the second respondent. The assessment year(s) are not specified in the judgment. The amount in dispute is not stated. The procedural history involves the filing of an appeal before the second respondent, which has not yet been decided.

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? Assessee's Contention: The petitioner bank seeks a direction for the expeditious disposal of its appeal filed before the second respondent. The petitioner relies on a circular of 2017, implying it pertains to the conditions for appeal or stay. The petitioner also seeks a stay on recovery proceedings until the appeal is decided. Revenue's Contention: The judgment records that the learned counsel for both sides were heard. However, specific contentions of the revenue are not detailed in the judgment. The revenue's implicit stance would be to defend the assessment order and the process, but no specific arguments are recorded.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
WP(C).No.8048 OF 2020(E) 1 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.8048 OF 2020(E) PETITIONER/S: KADAVOOR SERVICE CO-OPERATIVE BANK LTD. NO. 1882 KADAVOOR P.O., MUVATTUPUZHA, PIN, ERNAKULAM-686 671, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SHRI.ARUN B. RESPONDENT/S: 1 INCOME TAX OFFICER WARD 1 AND TPS, THODUPUZHA P.O., ERNAKULAM DISTRICT, PIN-685 584. 2 COMMISSIONER OF INCOME TAX (APPEALS) 2, OFFICE OF THE COMMISSIONER OF INCOME TAX, COCHIN- 682 018. SRI CHRISTOPHER ABRAHAM SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.8048 OF 2020(E) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal preferred before the second 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 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 Jm/

WP(C).No.8048 OF 2020(E) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 19.12.2019 ISSUED BY THE FIRS RESPONDENT. EXHIBIT P2 AOF THE DEMAND NOTICE UNDER SECTION 156 DATED 19.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3OF THE APPEAL FOR AY 2017-18 BEFORE THE 2ND RESPONDENT DATED 20.01.2020. EXHIBIT P4 AOF THE LETTER OF DEMAND DATED 28.02.2020 ISSUED BY THE 1ST RESPONDENT.

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