THE THYCATTUSSERY SERVICE CO-OPERATIVE BANK LTD NO. 275 vs. INCOME TAX OFFICER

WP(C)/6418/2020HC KeralaKLHC01016921202003 March 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition with a direction to the second respondent (Commissioner of Income Tax (Appeals)-2) to decide the appeal (Ext.P3) in accordance with law. The appellate authority was directed to afford an opportunity of hearing to the petitioner and to pass a decision within 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 of 2017. Until a decision is taken on the appeal, recovery proceedings pursuant to the assessment order are to be kept in abeyance. The core reasoning is to ensure timely disposal of the appeal and to provide interim relief regarding recovery.

What were the facts?

The petitioner, The Thycattussery 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) before the Commissioner of Income Tax (Appeals)-2. This appeal was filed against an assessment order (Ext.P1). The petitioner sought a direction for the appellate authority to decide the appeal expeditiously. The assessment year(s) are not explicitly stated in the judgment. The dispute involves tax demanded by the Income Tax Officer, Ward 5, Alappuzha.

What were the issues?

1. Whether the High Court should issue a writ of mandamus directing the Commissioner of Income Tax (Appeals) to dispose of the pending appeal filed by the petitioner? (Question of procedure/administrative law). The petitioner contended that its appeal has been pending and sought a direction for its disposal. The revenue's contentions are not recorded in the judgment. The judgment does not explicitly name any specific provisions of the Income Tax Act that are the subject of the appeal itself, but rather focuses on the procedural aspect of appeal 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 TUESDAY, THE 03RD DAY OF MARCH 2020 / 13TH PHALGUNA, 1941 WP(C).No.6418 OF 2020(B) PETITIONER: THE THYCATTUSSERY SERVICE CO-OPERATIVE BANK LTD NO. 275, THYCATTUSSERY P.O., CHERTHALA, ALAPPUZHA-688 528, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SRI.MATHEWS JOSEPH RESPONDENTS: 1 INCOME TAX OFFICER WARD 5, ALAPPUZHA, ALAPPUZHA-688 011. 2 COMMISSIONER OF INCOME TAX (APPEALS)-2, OFFICE OF THE COMMISSIONER OF INCOME TAX, KOTTAYAM-686 001. 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.6418 OF 2020(B) 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)2, 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.6418 OF 2020(B) 3 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 23.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 AOF THE DEMAND NOTICE UNDER SECTION 156 DATED 23.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 AOF THE APPEAL FOR AY 2017-18 BEFORE THE 2ND RESPONDENT DATED 08.01.2020. EXHIBIT P4 AOF THE LETTER OF DEMAND DATED 03.02.2020 ISSUED BY THE 1ST RESPONDENT. RESPONDENTS' EXHIBITS: NIL

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