VARPUZHA SERVICE CO-OPERATIVE BANK LTD vs. THE INCOME TAX OFFICER

WP(C)/8202/2020HC KeralaKLHC01021365202017 March 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the second respondent, the Commissioner of Income Tax (Appeals), to decide the appeal (Ext.P2) in accordance with law. This decision is to be made after providing an opportunity of hearing to the petitioner. The disposal is to be completed within three months from the date of receipt of a copy of the judgment. Crucially, the Court directed that the payment of 20% of the tax demanded should not be insisted upon, referencing a circular from 2017. Furthermore, recovery proceedings initiated pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The principle here is that courts can direct expeditious disposal of appeals, and can also grant interim relief by staying recovery proceedings, subject to specific conditions and circulars.

What were the facts?

The petitioner, Varpuzha Service Co-operative Bank Ltd., filed an appeal (Ext.P2) before the Commissioner of Income Tax (Appeals) against an assessment order (Ext.P1). The petitioner approached the High Court of Kerala seeking a direction for the disposal of this pending appeal. The assessment year(s) are not specified. The procedural history involves the filing of the appeal before the second respondent (CIT(A)) and the subsequent writ petition seeking expeditious disposal. The amount in dispute is not stated.

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? Assessee's Contention: The petitioner, Varpuzha Service Co-operative Bank Ltd., sought a direction from the High Court to the Commissioner of Income Tax (Appeals) to decide its appeal (Ext.P2) against the assessment order (Ext.P1). Revenue's Contention: The judgment records no specific contention from the revenue's side regarding the direction for disposal of the appeal. However, the revenue was represented by counsel.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL TUESDAY, THE 17TH DAY OF MARCH 2020 / 27TH PHALGUNA, 1941 WP(C).No.8202 OF 2020(A) PETITIONER: VARPUZHA SERVICE CO-OPERATIVE BANK LTD VARAPUZHA, ERNAKULAM 683517 REPRESENTED BY ITS SECRETARY SMT. RUXANA BAI S. BY ADVS. SRI.T.M.SREEDHARAN (SR.) SMT.NISHA JOHN SRI.V.P.NARAYANAN RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 3, K.A.P COMMERCIAL COMPLEX, O/O ADDL. CIT ALUVA RANGE, R.S ROAD, ALUVA 683101 2 THE COMMISSIONERE OF INCOME TAX (APPEALS)-II POORNIMA BUILDING, NEAR MANORAMA JUNCTION, COCHIN 682 036 SRI CHRISTOPHER ABRAHAM SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.8202 OF 2020(A) 2 JUDGMENT Dated this the 17th day of March 2020 Petitioner has approached this Court seeking a direction to dispose of Ext.P2 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.P2 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 dlk/17.03.2020 JUDGE

WP(C).No.8202 OF 2020(A) 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF ASSESSMENT ORDER DATED 31-12-2019 FOR AY-2017-18 ALONG WITH DEMAND NOTICE AND COMPUTATION STATEMENT PASSED BY THE 1ST RESPONDENT EXHIBIT P2 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 21-01-2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2017-18 EXHIBIT P3 TRUE COPY OF THE STAY PETITION DATED 12-03-2020 FILED BY THE PETITIONER FOR AY-2017-18 BEFORE THE 2ND RESPONDENT

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