ANGADI SERVICE CO-OPERATIVE BANK LTD, NO.2770 vs. INCOME TAX OFFICER

WP(C)/6426/2020HC KeralaKLHC01016850202003 March 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the Commissioner of Income Tax (Appeals) to decide the appeal (Ext.P3) within a period of three months from the date of receipt of a copy of the judgment. This decision is to be taken in accordance with law, after affording an opportunity of hearing to the petitioner. Crucially, the Court directed that the disposal should not insist 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 ratio decidendi is that appellate authorities should dispose of pending appeals expeditiously, and recovery can be stayed pending appeal, especially when a specific circular addresses pre-deposit conditions.

What were the facts?

The petitioner, Angadi 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) pending before the Commissioner of Income Tax (Appeals) (second respondent). This appeal was filed against an assessment order (Ext.P1) passed by the Income Tax Officer (first respondent). The petitioner sought a directive for the expeditious disposal of the appeal. The assessment year(s) are not specified in the judgment. The procedural history involves the filing of an appeal by the petitioner against an assessment order, which is now pending before the appellate authority.

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? The petitioner contended that their appeal (Ext.P3) against the assessment order (Ext.P1) is pending before the second respondent and sought a direction for its disposal. The revenue, represented by the Standing Counsel, was heard. The judgment does not explicitly record the revenue's specific arguments regarding the disposal of the appeal, but it notes that both sides were heard. The core issue revolves around the court's power to direct the expeditious disposal of a statutory appeal and the conditions under which such a direction should be issued, particularly concerning the requirement of pre-deposit.

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 TUESDAY, THE 03RD DAY OF MARCH 2020 / 13TH PHALGUNA, 1941 WP(C).No.6426 OF 2020(C) PETITIONER: ANGADI SERVICE CO-OPERATIVE BANK LTD, NO.2770 ANGADI P.O., RANNI, PATHANAMTHITTA-689 674, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SMT.SWATHY S. RESPONDENTS: 1 INCOME TAX OFFICER WARD 1 AND TPS, T.K.ROAD, THIRUVALLA, THIRUVALLA-689 101. 2 COMMISSIONER OF INCOME TAX (APPEALS), OFFICE OF THE COMMISSIONER OF INCOME TAX, CENTRAL REVENUE TOWER, KOTTAYAM-686 001. BY SRI JOSE JOSEPH, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.6426 OF 2020(C) 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, JUDGE Skk//03032020

WP(C).No.6426 OF 2020(C) 3 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 30.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 AOF THE DEMAND NOTICE UNDER SECTION 156 DATED 30.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 AOF THE APPEAL FOR AY 2017- 18 BEFORE THE 2ND RESPONDENT DATED 26.02.2020. RESPONDENTS' EXHIBITS: NIL

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