THE CHITTATTUKARA SERVICE CO-OPERATIVE BANK LTD NO.F-1642 vs. THE COMMISSIONER OF INCOME TAX(APPEALS),

WP(C)/8159/2020HC KeralaKLHC01021180202017 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 is 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, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The principle established is that appellate authorities should dispose of appeals expeditiously, and interim relief regarding recovery can be granted pending appeal disposal, especially when a specific circular allows for it.

What were the facts?

The petitioner, The Chittattukara Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction for the disposal of its appeal (Ext.P3) before the Commissioner of Income Tax (Appeals) (first respondent). This appeal was filed against an assessment order (Ext.P1) passed by the Income Tax Officer (second respondent). The petitioner sought a timely decision on their appeal. The assessment year(s) are not specified. The procedural history involves the filing of an appeal before the first respondent, which was pending.

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? The petitioner contended that their appeal before the Commissioner of Income Tax (Appeals) needed to be disposed of. The revenue's contentions are not recorded in the judgment. The judgment does not explicitly name any specific provisions of the Income Tax Act that were the subject of argument, but the context implies issues related to assessment orders and appeals.

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.8159 OF 2020(T) PETITIONER/S: THE CHITTATTUKARA SERVICE CO-OPERATIVE BANK LTD NO.F- 1642 CHITTATTUKARA P.O., THRISSUR-680511, 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 1 AND TPS, GURUVAYOOR, OFFICE OF THE INCOME TAX OFFICER, WEST NADA, GURUVAYOOR, THRISSUR-680101. OTHER PRESENT: SRI JOSE JOSEPH 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.8159 OF 2020(T) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal preferred before the first 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 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 order shall be kept in abeyance. AMIT RAWAL sab JUDGE

WP(C).No.8159 OF 2020(T) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER DATED 11.12.2019. EXHIBIT P2OF DEMAND NOTICE DATED 11.12.2019. EXHIBIT P3OF THE APPEAL DATED 09.01.2020. EXHIBIT P4OF THE ORDER DATED 17.01.2020. EXHIBIT P5OF THE STAY PETITION DATED 30.1.2020. EXHIBIT P6OF THE JUDGMENT DATED 1.7.2019 IN W.A.1536 OF 2019.

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