PANAVALLY SERVICE CO -OPERATIVE BANK LTD NO 901 vs. INCOME TAX OFFICER

WP(C)/7463/2020HC KeralaKLHC01019561202011 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. The Court also specified that the decision should be taken in accordance with law, after providing an opportunity of hearing to the petitioner. Crucially, the Court directed that the payment of 20% of the tax demanded should not be insisted upon, as per a circular issued in 2017. Until a decision is taken on the appeal, recovery proceedings pursuant to the assessment orders are to be kept in abeyance. No specific issue was left undecided.

What were the facts?

The petitioner, Panavally Service Co-operative Bank Ltd, filed a writ petition before the High Court of Kerala seeking a direction to dispose of its appeal (Ext.P3) pending before the Commissioner of Income Tax (Appeals) (second respondent). The appeal was filed against assessment orders (Ext.P1). The petitioner was represented by its Secretary, and the respondents were the Income Tax Officer and the Commissioner of Income Tax (Appeals). The case was heard on March 11, 2020.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the pending appeal filed by the petitioner? The petitioner sought a direction for the timely disposal of its appeal. The revenue did not record any specific arguments in the judgment regarding the disposal of the appeal.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL WEDNESDAY, THE 11TH DAY OF MARCH 2020 / 21ST PHALGUNA, 1941 WP(C).No.7463 OF 2020(G) PETITIONER: PANAVALLY SERVICE CO -OPERATIVE BANK LTD NO 901 POOCHAKKAL.P.O,CHERTHALA,ALAPPUZHA-688526, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.C.A.JOJO RESPONDENTS: 1 INCOME TAX OFFICER WARD -3,ALAPPUZHA.P.O,ALAPPUZHA-688011. 2 COMMISSIONER OF INCOME TAX(APPEALS), OFFICE OF THE COMMISSIONER OF INCOME TAX, KOTTAYAM TOWN.P.O,PIN-686001. ADV.SRI JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.7463 OF 2020(G) 2 JUDGMENT Dated this the 11th day of March 2020 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 orders Ext.P1. 2. Having heard the learned counsel on both sides, the writ petition is disposed of with a direction to the third 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 orders shall be kept in abeyance. AMIT RAWAL ACM JUDGE

WP(C).No.7463 OF 2020(G) 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 28.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 A TRUE COPY OF THE DEMAND NOTICE U/S 156 DATED 28.12.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P3 A TRUE COPY OF THE APPEAL FOR AY 2017- 18 BEFORE THE 2ND RESPONDENT DATED 14.01.2020. EXHIBIT P4 A TRUE COPY OF THE LETTER OF 20% DEMAND DATED 05.03.2020 ISSUED BY THE 1ST RESPONDENT.

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