THE ORUMANAYUR SERVICE CO-OPERATIVE BANK LTD. NO. R. 209 vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/8571/2020HC KeralaKLHC01022020202018 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 appeals (Exts.P3, P8, and P13) within three months from the receipt of a copy of the judgment. The decision is to be made in accordance with the law, after providing a hearing to the petitioner. Crucially, the court ordered that the appeals should be decided without insisting on the payment of 20% of the tax demanded, as per a circular issued in 2017. Furthermore, recovery proceedings pursuant to the assessment orders are to be kept in abeyance until a decision is taken on the appeals. The court did not decide on the merits of the appeals themselves, but rather on the procedural aspect of their disposal.

What were the facts?

The petitioner, The Orumanayur Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction to the Commissioner of Income Tax (Appeals) to dispose of its appeals and interim applications. These appeals were filed against assessment orders passed by the Income Tax Officer. The petitioner sought a speedy resolution of these pending matters before the first respondent.

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? Assessee's Contention: The petitioner sought a direction for the expeditious disposal of its appeals and interim applications pending before the Commissioner of Income Tax (Appeals). The petitioner relied on the principle of speedy justice and the need for the appellate authority to decide the matters in accordance with law. Revenue's Contention: The judgment does not record any specific contentions raised by the revenue. However, the court's direction implies that the revenue would be bound by the outcome of the appellate proceedings.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

WP(C).No.8571 OF 2020(V) 1 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.8571 OF 2020(V) PETITIONER/S: THE ORUMANAYUR SERVICE CO-OPERATIVE BANK LTD. NO. R. 209 ORUMANAYUR P.O.CHAVAKKAD, THRISSUR-679 512, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.P.C.SASIDHARAN RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, S.T.NAGAR, THRISSUR-680 001. 2 THE INCOME TAX OFFICER, WARD 2, GURUVAYUR, OFFICE OF THE INCOME TAX OFFICER, WEST NADA, GURUVAYOOR-680 101. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.8571 OF 2020(V) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Exts.P3, P8 and P13 appeals and Ext.P5, P10 and P15 interim

applications

preferred

before

the first respondent/Commissioner of Income Tax (Appeals) against the assessment orders Ext.P1, P6 and Ext.P11. 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.P3, P8 and P13 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/

WP(C).No.8571 OF 2020(V) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT DATED 11.11.2019 ALONG WITH THE COMPUTATION SHEET EXHIBIT P2OF THE DEMAND NOTICE DATED 11.11.2019 EXHIBIT P3OF THE APPEAL DATED 18.12.2019 EXHIBIT P4OF THE ORDER DATED 31.1.2020 EXHIBIT P5OF THE STAY PETITION DATED 10.2.2020 EXHIBIT P6OF THE ASSESSMENT ORDER DATED 13.11.2019 ALONG WITH COMPUTATION SHEET EXHIBIT P7OF THE DEMAND NOTICE DATED 13.11.2019 EXHIBIT P8OF THE APPEAL DATED 5.12.2019 EXHIBIT P9OF THE ORDER DATED 17.1.2020 EXHIBIT P10OF THE STAY PETITION DATED 24.1.2019 EXHIBIT P11OF THE ASSESSMENT ORDER DATED 18.11.2019 ALONG WITH COMPUTATION SHEET EXHIBIT P12OF THE DEMAND NOTICE DATED 18.11.2019 EXHIBIT P13OF THE APPEAL DATED 13.12.2019 EXHIBIT P14OF THE ORDER DATED 17.1.2020 EXHIBIT P15OF THE STAY PETITION DATED 24.1.2020 EXHIBIT P16OF THE JUDGMENT DATED 1.7.2019 IN WA NO 1536 OF 2019

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