MUPPATHADAM SERVICE CO-OPERATIVE BANK LTD. E-216 vs. THE CENTRAL BOARD OF DIRECT TAXES

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WP(C)/7070/2020HC KeralaKLHC01018613202009 March 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the third respondent, the Commissioner of Income Tax (Appeals), to decide the appeal (Ext.P2) in accordance with the law. This decision is to be made after providing an opportunity of hearing to the petitioner within three months from the date of receiving a copy of the judgment. Crucially, the court ordered that the decision should be made without insisting on the payment of 20% of the tax demanded, as per a circular issued in 2017. Furthermore, recovery proceedings pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. 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, Muppathadam Service Co-operative Bank Ltd., filed an appeal (Ext.P2) before the Commissioner of Income Tax (Appeals) against an assessment order (Ext.P1). The petitioner approached the High Court of Kerala seeking a direction for the disposal of this pending appeal. The assessment order was passed by the Income Tax Officer, Ward 2, Aluva, and the appeal was filed before the Commissioner of Income Tax (Appeals), Kochi. The writ petition was filed in the High Court of Kerala at Ernakulam.

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 argued for a direction to the third respondent (Commissioner of Income Tax (Appeals)) to decide Ext.P2 appeal. The revenue did not record any specific arguments in the judgment. The court considered the petitioner's request for a direction to dispose of the appeal and also noted a circular of 2017 regarding payment of 20% of the tax demanded.

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.7070 OF 2020(G) PETITIONER: MUPPATHADAM SERVICE CO-OPERATIVE BANK LTD. E-216 MUPPATHADAM P.O., ALUVA-683110, REPRESENTED BY ITS SECRETARY SABU P.H. BY ADVS. DR.K.P.PRADEEP SMT.T.THASMI SMT.NOORUNISSA K.A. RESPONDENTS: 1 THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110001, REPRESENTED BY ITS CHAIRMAN. 2 INCOME TAX OFFICER, WARD 2, ALUVA, INCOME TAX DEPARTMENT, K.A.P.COMMERCIAL COMPLEX, OFFICE OF THE ADDITIONAL CIT, ALUVA RANGE, R.S.ROAD, ALUVA-683101. 3 COMMISSIONER OF INCOME TAX (APPEALS), KOCHI, POORNIMA BUILDINGS, PANAMPILLY NAGAR, KOCHI-682036. OTHER PRESENT: SRI CHRISTOPHER ABRAHAM SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(c). No. 7070 of 2020 2

J U D G M E N T Petitioner has approached this Court seeking a direction to dispose of Ext.P2 appeal preferred before the third 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 third respondent to take a decision on Ext.P2 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. (Sd/-) AMIT RAWAL JUDGE LU

W.P.(c). No. 7070 of 2020 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER NO.ITBA/AST/S/143(3)/2019-20/1023404057(1) DATED 30.12.2019 ISSUED FOR THE YEAR 2017- 18 BY THE 2ND RESPONDENT. EXHIBIT P2OF THE APPEAL DATED 25.01.2020 FILED BEFORE THE 3RD RESPONDENT FOR THE ASSESSMENT YEAR 2017-18. EXHIBIT P3OF THE NOTICE NO.ITBA/COM/F/17/2019-20/1025647876(1) DATED 24.02.2020 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P4OF THE STAY APPLICATION FILED ON 03.03.2020 BEFORE THE 3RD RESPONDENT IN EXT.P2 APPEAL. //// PA To Judge

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