THE KARAPUZHA SERVICE CO-OPERATIVE BANK LTD NO.74 vs. INCOME TAX OFFICER

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WP(C)/6905/2020HC KeralaKLHC01018078202006 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, as per a circular from 2017. Furthermore, the Court ordered that recovery proceedings pursuant to the assessment order (Ext.P1) shall 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 recovery can be stayed pending such disposal, especially when a relevant circular permits waiver of pre-deposit conditions. No issue was expressly left undecided.

What were the facts?

The petitioner, The Karapuzha Service Co-operative Bank Ltd, filed a writ petition before the High Court of Kerala seeking a direction for the disposal of its appeal (Ext.P3) pending before the Commissioner of Income Tax (Appeals). This appeal was filed against an assessment order (Ext.P1) passed by the Income Tax Officer, Ward-2, Kottayam. 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. The procedural history involves the filing of the appeal before the CIT(A) and the subsequent writ petition seeking its expeditious disposal.

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? 2. Whether the recovery proceedings should be kept in abeyance until a decision is taken on the appeal? Assessee's Contention: The petitioner, The Karapuzha Service Co-operative Bank Ltd, contended that its appeal before the Commissioner of Income Tax (Appeals) needed to be disposed of expeditiously. They sought a direction from the High Court to this effect. Revenue's Contention: The judgment records that the learned counsel for both sides were heard, implying the revenue was represented. However, the specific contentions of the revenue are not detailed in the judgment.

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.6905 OF 2020(K) PETITIONER/S: THE KARAPUZHA SERVICE CO-OPERATIVE BANK LTD NO.74 KOTTAYAM WEST P.O. 686 003, REPRESENTED BY IS SECRETARY. BY ADVS. SRI.C.A.JOJO SRI.MATHEWS JOSEPH RESPONDENT/S: 1 INCOME TAX OFFICER WARD-2, SHASTRI ROAD, KOTTAYAM P.O. 686 001. 2 COMMISSIONER OF INCOME TAX (APPEALS), OFFICE OF THE COMMISSIONER OF INCOME TAX, CENTRAL REVENUE TOWER KOTTAYAM P.O. 686 001. OTHER PRESENT: SRI JOSE JOSEPH 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.6905 OF 2020(K) 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. sab AMIT RAWAL JUDGE

WP(C).No.6905 OF 2020(K) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 18.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 AOF THE DEMAND NOTICE U/S 156 DATED 18.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 AOF THE APPEAL FOR AY 2017-18 BEFORE THE RESPONDENT DATED 15.01.2020. EXHIBIT P4 AOF THE NOTICE OF DEMAND OF 20% DATED 30.01.2020 ISSUED BY THE FIRST RESPONDENT.

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