THE PULLUR SERVICE CO-OPERATIVE BANK NO.F.550 vs. THE COMMISSIONER OF INCOME TAX(APPEALS)

WP(C)/8614/2020HC KeralaKLHC01022010202018 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 first respondent, the Commissioner of Income Tax (Appeals), to decide the appeal (Ext.P3) in accordance with the law. This decision is to be made after affording an opportunity of hearing to the petitioner, within a period of three months from the date of receipt of a copy of the judgment. Crucially, the Court directed that the Commissioner should not insist on the payment of 20% of the tax demanded, as per a circular of 2017. Furthermore, until a decision is taken on the appeal, recovery proceedings pursuant to the assessment orders shall be kept in abeyance. The Court did not leave any issue undecided.

What were the facts?

The petitioner, The Pullur Service Co-operative Bank, filed a writ petition before the High Court of Kerala seeking a direction to expedite the disposal of its appeal (Ext.P3) and an interim application (Ext.P5) pending before the Commissioner of Income Tax (Appeals). These appeals were against assessment orders for the assessment year 2016-17. The petitioner sought a direction for the Commissioner to decide the appeal without insisting on the payment of 20% of the tax demanded, referencing a circular from 2017. The Court heard both the petitioner and the respondents.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the pending appeal and interim application filed by the petitioner. 2. Whether the Commissioner of Income Tax (Appeals) should be directed to decide the appeal without insisting on the payment of 20% of the tax demanded, in light of a circular from 2017. Assessee's Contention: The petitioner bank sought a direction for the expeditious disposal of its appeal and interim application. It also contended that the Commissioner should not insist on the payment of 20% of the tax demanded, relying on a circular issued in 2017. Revenue's Contention: The judgment records that the learned counsel for both sides were heard, but it does not detail the specific arguments of the revenue.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

WP(C).No.8614 OF 2020(B) 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.8614 OF 2020(B) PETITIONER/S: THE PULLUR SERVICE CO-OPERATIVE BANK NO.F.550 PULLUR, THRISSUR-680683, 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-680001. 2 THE INCOME TAX OFFICER, WARD 2(4), THRISSUR, OFFICE OF THE INCOME TAX OFFICER, SAKTHANTHAMPOURAN NAGAR, THRISSUR-680001. OTHER PRESENT: 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: WP(C).No.8614 OF 2020(B) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal and Ext.P5 interim application preferred before the first respondent/Commissioner of Income Tax (Appeals) against the assessment orders pertaining to the year 2016-17. 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 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 orders shall be kept in abeyance. AMIT RAWAL JUDGE Jm/

WP(C).No.8614 OF 2020(B) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER DATED 12.12.2018 ALONG WITH COMPUTATION SHEET. EXHIBIT P2OF THE DEMAND NOTICE DATED 12.12.2018. EXHIBIT P3OF APPEAL DATED 7.1.2019. EXHIBIT P4OF THE ORDER DATED 15.10.2019. EXHIBIT P5OF THE STAY PETITION DATED 21.10.2019. EXHIBIT P6OF THE JUDGMENT DATED 1.7.2019 IN W.A.1536 OF 2019.

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