ALAPPUZHA GOVERNMENT SERVANTS CO-OPERATIVE BANK LIMITED vs. INCOME TAX OFFICER

WP(C)/7020/2020HC KeralaKLHC01018581202009 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 the law. This decision is to be made after providing the petitioner an opportunity of hearing, within a period of three months from the date of receipt of a copy of the judgment. Crucially, the court directed that the decision should be made 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 principle here is that appellate authorities should dispose of appeals expeditiously, and recovery can be stayed pending appeal, with specific directions on pre-deposit requirements based on extant circulars.

What were the facts?

The petitioner, Alappuzha Government Servants Co-operative Bank Limited, filed a writ petition before the High Court of Kerala seeking a direction to dispose of an appeal (Ext.P3) filed before the Commissioner of Income Tax (Appeals) (second respondent). This appeal was against an assessment order (Ext.P1) passed by the Income Tax Officer, Ward-1 and TPS, Alappuzha (first respondent). 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.

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 sought a direction for the expeditious disposal of their appeal before the Commissioner of Income Tax (Appeals). Revenue's contention: The judgment records that the learned counsel for both sides were heard, but it does not explicitly detail the revenue's specific arguments or contentions in response to the writ petition. However, the court's direction implies that the revenue would be bound by the outcome.

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 09TH DAY OF MARCH 2020 / 19TH PHALGUNA, 1941 WP(C).No.7020 OF 2020(B) PETITIONER/S: ALAPPUZHA GOVERNMENT SERVANTS CO-OPERATIVE BANK LIMITED COLLECTORATE JUNCTION,COLLECTORATE.P.O, ALAPPUZHA-688001,REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SMT.SWATHY S. RESPONDENT/S: 1 INCOME TAX OFFICER WARD-1 AND TPS, ALAPPPUZHA.P.O, ALAPPUZHA-688011. 2 COMMISSIONER OF INCOME TAX (APPEALS), OFFICE OF THE COMMISSIONER OF INCOME TAX, PUBLIC LIBRARY BUILDING,KOTTAYAM.P.O,PIN-686001. OTHER PRESENT: SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.7020 OF 2020(B) 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 sab JUDGE

WP(C).No.7020 OF 2020(B) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 20.12.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P2 AOF THE DEMAND NOTICE U/S 156 DATED 20.12.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P3 AOF THE APPEAL FOR AY 2017-18 BEFORE THE 2ND RESPONDENT DATED 18.01.2020. EXHIBIT P4 AOF THE LETTER OF DEMAND DATED 02.03.2020 ISSUED BY THE 1ST RESPONDENT.

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