PUDUKKAD SERVICE CO-OPERATIVE BANK LTD.NO.580 vs. INCOME TAX OFFICER

WP(C)/8640/2020HC KeralaKLHC01021901202018 March 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the 2nd respondent, the Commissioner of Income Tax (Appeals), to decide the pending appeals (Exts.P3 and P6) within three months from the date of receipt of a copy of the judgment. This decision is to be made in accordance with the law, after providing an opportunity of hearing to the petitioner. Crucially, the court specified 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 orders are to be kept in abeyance until a decision is taken on the appeals. The ratio decidendi is that tax authorities should not unduly delay the disposal of appeals, and recovery should be stayed pending appeal resolution, especially when a relevant circular addresses pre-deposit conditions.

What were the facts?

The petitioner, Pudukkad Service Co-operative Bank Ltd., filed appeals (Exts.P3 and P6) before the Commissioner of Income Tax (Appeals) (2nd respondent) challenging assessment orders (Exts.P1 and P4). The petitioner approached the High Court of Kerala seeking a direction for the disposal of these pending appeals. The assessment orders were passed by the Income Tax Officer, Ward 2(4), Thrissur (1st respondent). The amount in dispute is not explicitly stated. The procedural history involves the filing of appeals before the CIT(A) and the subsequent writ petition for expeditious disposal.

What were the issues?

1. Whether the 2nd respondent/Commissioner of Income Tax (Appeals) should be directed to dispose of the pending appeals filed by the petitioner? (Question of procedure). Assessee's Contention: The petitioner seeks a direction for the timely disposal of their appeals, which have been pending before the CIT(A). They rely on the general principle of expeditious disposal of tax appeals. Revenue's Contention: The revenue, represented by the Income Tax Officer and the Commissioner of Income Tax (Appeals), did not explicitly record any contentions against the direction for disposal. However, the judgment notes that the court directed disposal without insisting on the payment of 20% of the tax demanded, implying a potential issue or practice related to pre-deposit requirements.

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 18TH DAY OF MARCH 2020 / 28TH PHALGUNA, 1941 WP(C).No.8640 OF 2020(D) PETITIONER/S: PUDUKKAD SERVICE CO-OPERATIVE BANK LTD.NO.580 PUDUKKAD P.O. THRISSUR 680 301, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SMT.SWATHY S. RESPONDENT/S: 1 INCOME TAX OFFICER WARD 2 (4), THRISSUR AAYAKAR BHAVAN S. NAGAR P.O., THRISSUR 680 001. 2 COMMISSIONER OF INCOME TAX (APPEALS) OFFICE OF THE COMMISSIONER OF INCOME TAX, CENTRAL REVENUE TOWER S. NAGAR, P.O. THRISSUR 680 001. SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Exts.P3 and P6 appeals preferred before the 2nd respondent/Commissioner of Income Tax (Appeals) against the assessment order, Exts.P1 and P4. 2. Having heard the learned counsel on both sides, the writ petition is disposed of with a direction to the 2nd respondent to take a decision on Exts.P3 and P6 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 JUDGE Jm/

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER AY 2012-13 DATED 10.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 AOF THE DEMAND NOTICE U/S 156 DATED 10.10.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 AOF THE APPEAL FOR AY 2012-13 BEFORE THE 2ND RESPONDENT DATED 10.01.2020. EXHIBIT P4 AOF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 10.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P5 AOF THE DEMAND NOTICE U/S 156 DATED 10.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P6 AOF THE APPEAL FOR AY 2017-18 BEFORE THE 2ND RESPONDENT DATED 06.01.2020. EXHIBIT P7 AOF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 14.02.2020 FOR 20% OF TAX. EXHIBIT P8 AOF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 14.02.2020 FOR 20% OF TAX FOR AY 2017-18.

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