KOTTARAKKARA PRIMARY CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD NO. Q 1511, vs. THE INCOME TAX OFFICER,

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WP(C)/8141/2020HC KeralaKLHC01021137202017 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 a period of three months from the date of receipt of a copy of the judgment. This decision is to be taken in accordance with law, after affording an opportunity of hearing to the petitioner. Crucially, the Court specified that the disposal should be 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 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 pending appeals within a reasonable time, and recovery can be stayed pending such disposal, especially when a specific circular permits waiver of pre-deposit under certain circumstances.

What were the facts?

The petitioner, Kottarakkara Primary Co-operative Agricultural and Rural Development Bank Ltd, filed an appeal (Ext.P3) 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 order was passed by the Income Tax Officer, Ward-2, Kollam. The appeal before the Commissioner of Income Tax (Appeals) was pending for an unspecified period. The petitioner sought expeditious disposal of the appeal.

What were the issues?

1. Whether the petitioner is entitled to a direction for the disposal of their appeal pending before the Commissioner of Income Tax (Appeals)? (Question of procedure) The petitioner argued for a direction to dispose of their appeal expeditiously. The revenue did not record any specific arguments against this direction in the judgment. The core of the petition was to compel the appellate authority to decide the pending appeal, which was filed against an assessment order.

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.8141 OF 2020(P) PETITIONER/S: KOTTARAKKARA PRIMARY CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD NO. Q 1511, REPRESENTED BY ITS SECRETARY, KOTTARAKKARA P.O., KOLLAM DISTRICT - 691 506. 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 - 695 003. OTHER PRESENT: 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.8141 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. 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.8141 OF 2020(P) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 19/12/2019. EXHIBIT P2 AOF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 19/12/2019. EXHIBIT P3 AOF THE ONLINE APPEAL DATED 26/12/2019, 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 09/03/2020. EXHIBIT P5 AOF THE JUDGMENT DATED 19/07/2019 IN W.A.NO.1639 OF 2019. EXHIBIT P6 AOF THE JUDGMENT DATED 17/02/2020 IN WP(C) NO.4433 OF 2020.

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