THE ARAKULAM FARMERS SERVICE CO-OPERATIVE BANK LTD. vs. COMMISSIONER OF INCOME TAX (APPEALS) -II

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WP(C)/6555/2020HC KeralaKLHC01017351202004 March 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition with a direction to the Commissioner of Income Tax (Appeals) - II to take a decision on the pending appeals and interim applications within a period of three months from the date of receipt of a copy of the judgment. The court specified that this decision should be taken in accordance with the law, after affording an opportunity of hearing to the petitioner. 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, the court ordered that recovery proceedings pursuant to the assessment orders shall be kept in abeyance until a decision is taken on the appeal. The principle established is that appellate authorities should dispose of pending matters expeditiously, and interim relief regarding recovery can be granted pending such disposal, especially when a specific circular provides for waiver of pre-deposit conditions.

What were the facts?

The petitioner, The Arakulam Farmers' Service Co-operative Bank Ltd. (ASCO Bank Limited), filed a writ petition before the High Court of Kerala seeking a direction for the disposal of its appeals and interim applications pending before the Commissioner of Income Tax (Appeals) - II. These appeals were filed against assessment orders passed by the Income Tax Officer, Ward 1 and TPS Thodupuzha. The petitioner sought a directive for the Commissioner to decide these appeals and applications.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the pending appeals and interim applications filed by the petitioner? The petitioner sought a direction from the High Court to the Commissioner of Income Tax (Appeals) to expedite the decision on its pending appeals and interim applications. The petitioner's counsel appeared before the court. The revenue's counsel also appeared. The court heard both sides. No specific arguments from either side regarding the merits of the appeals or the delay were recorded, but the court considered the matter based on the submissions made.

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 WEDNESDAY, THE 04TH DAY OF MARCH 2020 / 14TH PHALGUNA, 1941 WP(C).No.6555 OF 2020(T) PETITIONER/S: THE ARAKULAM FARMERS' SERVICE CO-OPERATIVE BANK LTD. (ASCO BANK LIMITED), ARAKULAM P. O., THODUPUZHA, IDUKKI DIST., PIN - 685 591, REPRESENTED BY ITS MANAGING DIRECTOR JOSHY V MATHEW. BY ADVS. SRI.A.KUMAR SRI.P.J.ANILKUMAR SMTG.MINI(1748) SRI.P.S.SREE PRASAD SHRI.JOB ABRAHAM SRI.AJAY V.ANAND RESPONDENT/S: 1 COMMISSIONER OF INCOME TAX (APPEALS) -II POORNIMA BUILDINGS, PANAMPILLY NAGAR, KOCHI - 682 036. 2 INCOME TAX OFFICER WARD 1 AND TPS THODUPUZHA, MAHIMA TOWERS, TEMPLE ROAD, THODUPUZHA - 685 584. OTHER PRESENT: SC SRI CHRISTOPHER ABRAHAM SRI JOS WINSON O P THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.6555 OF 2020(T) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Exts.P2, P2(a), P2(b), P2(c) and P2(d) appeals and Exts.P3, P3(a), P3(b), P3(c) and P3(d) interim applications preferred before the first respondent/Commissioner of Income Tax (Appeals) against the assessment orders Exts.P1, P1(a), P1(b), P1(c) and P1(d) appeals.

2.

Having heard the learned counsel on both sides, the writ petition is disposed of with a direction to the first respondent to take a decision on Exts.P2, P2(a), P2(b), P2(c) and P2(d) appeals 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 sab JUDGE

WP(C).No.6555 OF 2020(T) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER FOR AY 2011-12 DATED 22.12.2016. EXHIBIT P1 (a)OF THE ASSESSMENT ORDER FOR AY 2012-13 DATED 30.03.2015 AND ORDER U/S 154 DATED 03.06.2015. EXHIBIT P1 (b)OF THE ASSESSMENT ORDER FOR AY 2013-14 DATED 21.03.2016. EXHIBIT P1 (c)OF THE ASSESSMENT ORDER FOR AY 2014-15 DATED 19.12.2016. EXHIBIT P1 (d)OF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 17.12.2019. EXHIBIT P2OF APPEAL FILED IN FORM 35 FOR AY 2011-12 DATED 30.01.2017. EXHIBIT P2 (a)OF APPEAL FILED IN FORM 35 FOR AY 2012-13 DATED 14.07.2015. EXHIBIT P2 (b)OF APPEAL FILED IN FORM 35 FOR AY 2013-14 DATED 25.04.2016. EXHIBIT P2 (c)OF APPEAL FILED IN FORM 35 FOR AY 2014-15 DATED 30.01.2017. EXHIBIT P2 (d)OF APPEAL FILED IN FORM 35 FOR AY 2017-18 DATED 10.02.2020. EXHIBIT P3OF STAY APPLICATION FOR AY 2011-12 DATED 20.02.2020. EXHIBIT P3 (a)OF STAY APPLICATION FOR AY 2012-13 DATED 27.02.2020. EXHIBIT P3 (b)OF STAY APPLICATION FOR AY 2013-14 DATED 20.02.2020. EXHIBIT P3 (c)OF STAY APPLICATION FOR AY 2014-15 DATED 20.02.2020. EXHIBIT P3 (d)OF STAY APPLICATION FOR AY 2017-18 DATED 20.02.2020. EXHIBIT P4OF THE JUDGMENT OF THE HON'BLE DIVISION BENCH IN WRIT APPEAL 1529/2019 DATED 01.07.2019. WP(C).No.6555 OF 2020(T) 4

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