THE PERINAD LAKSHMIVILASAM VILLAGE SERVICE CO-OPERATIVE BANK LTD. NO. 1841, vs. THE INCOME TAX OFFICER,

WP(C)/8143/2020HC KeralaKLHC01021126202017 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 appeal (Ext.P3) within three months from the date of receipt of a copy of the judgment. This decision was to be made in accordance with the law, after providing the petitioner an opportunity of hearing. Crucially, the Court directed that the disposal should not insist on the payment of 20% of the tax demanded, as per a circular of 2017. Furthermore, recovery proceedings pursuant to the assessment order were to be kept in abeyance until a decision was taken on the appeal. The ratio is that appellate authorities should dispose of appeals expeditiously, and recovery proceedings can be stayed pending appeal disposal, especially when a circular provides for waiver of pre-deposit under certain circumstances.

What were the facts?

The petitioner, The Perinad Lakshmivilasam Village Service Co-Operative Bank Ltd., filed an appeal (Ext.P3) before the Commissioner of Income Tax (Appeals) against an assessment order (Ext.P1). Subsequently, the petitioner received a garnishee notice (Ext.P5). The petitioner approached the High Court of Kerala seeking a direction for the disposal of their appeal. The assessment year(s) are not specified. The authorities involved are the Income Tax Officer (Ward-2) and the Commissioner of Income Tax (Appeals). The amount in dispute is not stated. The procedural history involves the filing of an appeal and the subsequent issuance of a garnishee notice, leading to the present writ petition.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of the petitioner's appeal within a specified period? (Question of procedure/direction) The petitioner argued that they have filed an appeal and received a garnishee notice, necessitating a direction for the speedy disposal of the appeal. The revenue did not record any specific arguments in the judgment.

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 17TH DAY OF MARCH 2020 / 27TH PHALGUNA, 1941 WP(C).No.8143 OF 2020(P) PETITIONER/S: THE PERINAD LAKSHMIVILASAM VILLAGE SERVICE CO-OPERATIVE BANK LTD. NO. 1841, REPRESENTED BY ITS SECRETARY-IN-CHARGE, KANJAVELI P.O.,KOLLAM DISTRICT, PIN - 691 602. BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD-2, OFFICE OF THE INCOME TAX OFFICER, KOLLAM RANGE, AAYAKAR BHAVAN, KARBALA JUNCTION, KOLLAM, PIN - 691 001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, PIN - 695 003. 3 THE KERALA STATE CO-OPERATIVE BANK (FORMERLY KNOWN AS KOLLAM DISTRICT CO-OPERATIVE BANK), ANCHALUMMOOD EVENING BRANCH, KOLLAM DISTRICT, PIN - 691 601, REPRESENTED BY ITS BRANCH MANAGER. OTHER PRESENT: SRI CHRISTOPHER ABRAHAM SC SRI THOMAS 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.8143 OF 2020(P) 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) against the assessment order Ext.P1. However, post thereto received a garnishee notice Ext.P5. 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 sab JUDGE

WP(C).No.8143 OF 2020(P) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 29/11/2019. EXHIBIT P2 AOF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 29/11/2019. EXHIBIT P3 AOF THE ONLINE APPEAL DATED 21/01/2020, FILED AGAINST EXT.P1 ASSESSMENT ORDER, BEFORE THE 2ND RESPONDENT. EXHIBIT P4 AOF THE STAY PETITION FILED BY THE PETITIONER IN EXT.P3 APPEAL DATED 24/01/2020. EXHIBIT P5 AOF THE GARNISHEE NOTICE DATED 11/03/2020 ISSUED UNDER SECTION 226(3) OF THE INCOME TAX ACT, BY THE 1ST RESPONDENT TO THE 3RD RESPONDENT. EXHIBIT P6 AOF THE JUDGMENT DATED 19/07/2019 IN W.A.NO.1639 OF 2019. EXHIBIT P7 AOF THE JUDGMENT DATED 17/02/2020 IN WP(C) NO.4433 OF 2020.

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