EDAVA SERVICE CO-OPERATIVE BANK LTD. NO.3782 vs. THE INCOME TAX OFFICER,

WP(C)/6932/2020HC KeralaKLHC01018342202006 March 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the third respondent (General Manager, Thiruvananthapuram District Co-operative Bank, though the operative direction is for the Commissioner of Income Tax (Appeals) to decide the appeal) to take a decision on the appeal (Ext.P3) in accordance with law. This decision is to be made after affording an opportunity of hearing to the petitioner and within a period of three months from the 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, as per a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment orders were ordered to be kept in abeyance until a decision is taken on the appeal. The court did not decide the merits of the appeal itself.

What were the facts?

The petitioner, Edava 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) and interim application (Ext.P4) pending before the Commissioner of Income Tax (Appeals). The appeal was against an assessment order (Ext.P1) passed by the Income Tax Officer. The petitioner sought a speedy resolution of their appeal. The respondents included the Income Tax Officer, the Commissioner of Income Tax (Appeals), and the General Manager of the Thiruvananthapuram District Co-operative Bank.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of the pending appeal and interim application filed by the petitioner. Assessee's Contention: The petitioner sought a direction for the expeditious disposal of their appeal and interim application. The judgment does not explicitly record the petitioner's specific arguments beyond this request. Revenue's Contention: The judgment does not explicitly record the revenue's specific arguments. However, the court's direction implies that the revenue's position did not preclude a direction for disposal.

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 FRIDAY, THE 06TH DAY OF MARCH 2020 / 16TH PHALGUNA, 1941 WP(C).No.6932 OF 2020(N) PETITIONER: EDAVA SERVICE CO-OPERATIVE BANK LTD. NO.3782 REPRESENTED BY ITS SECRETARY, EDAVA P.O., THIRUVANANTHAPURAM DISTRICT-695311. BY ADVS. SRI.ARJUN RAGHAVAN SRI.ADITHYA RAJEEV RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD-2(5), OFFICE OF THE INCOME TAX OFFICER, AAYAKAR BHAVAN, KAWDIAR P.O., THIRUVANANTHAPURAM, PIN-695003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, PIN-695003. 3 THE GENERAL MANAGER, THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK, HEAD OFFICE, EAST FORT, THIRUVANANTHAPURAM, PIN-695001. ADV.CHRISTOPHER ABRAHAM, SC ADV.THOMAS ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.6932 OF 2020(N) 2 JUDGMENT Dated this the 6th day of March 2020 Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal and Ext.P4 interim application 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 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. Sd/- AMIT RAWAL ACM JUDGE WP(C).No.6932 OF 2020(N) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1

AOF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 19.12.2019. EXHIBIT P2 AOF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 19.12.2019. EXHIBIT P3 AOF THE ONLINE APPEAL DATED 31.12.2019 ALONG WITH GROUNDS OF APPEAL FILED BEFORE THE 2ND RESPONDENT, AGAINST EXT.P1 ASSESSMENT ORDER. EXHIBIT P4 AOF THE STAY PETITION FILED BY THE PETITIONER IN EXT.P3 APPEAL DATED 07.01.2020. EXHIBIT P5 AOF THE JUDGMENT DATED 19.07.2019 IN W.A.NO.1639 OF 2019. EXHIBIT P6 AOF THE JUDGMENT DATED 17.02.2020 IN WP(C)NO.4433 OF 2020

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