THE VATANAPPALLY SERVICE CO-OPERATIVE BANK LTD.NO.F.211, vs. THE COMMISSIONER OF INCOME TAX(APPEALS),

WP(C)/8179/2020HC KeralaKLHC01021144202017 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) filed by the petitioner in accordance with the law. This decision is to be made after providing the petitioner an opportunity of hearing. The disposal must be 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, 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 core principle is that appellate authorities should dispose of pending appeals expeditiously, and recovery should be stayed pending such disposal, subject to specific conditions like those outlined in the 2017 circular.

What were the facts?

The petitioner, The Vatanappally Service Co-operative 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, Guruvayoor, the second respondent. The first respondent is the Commissioner of Income Tax (Appeals). The specific assessment year(s) and the amount in dispute are not recorded in the judgment. The procedural history involves the filing of the appeal before the first respondent, which remained undecided, 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 pending appeal filed by the petitioner? Assessee's Contention: The petitioner bank seeks a direction for the expeditious disposal of its appeal before the Commissioner of Income Tax (Appeals). The petitioner relies on a circular of 2017, implying it pertains to the conditions for appeal disposal or stay of recovery proceedings. Revenue's Contention: The judgment records that the revenue was heard through its Standing Counsel. However, the specific arguments or contentions of the revenue are not detailed in the judgment. The court's direction to not insist on 20% of the tax demanded suggests a potential point of contention or a standard practice that the petitioner sought to bypass.

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.8179 OF 2020(V) PETITIONER/S: THE VATANAPPALLY SERVICE CO-OPERATIVE BANK LTD.NO.F.211, THRITHALLUR, CHAVAKKAD, THRISSUR-680 619, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.P.C.SASIDHARAN RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX(APPEALS), AAYAKAR BHAVAN, S.T.NAGAR, THRISUR-680 001. 2 THE INCOME TAX OFFICER, WARD 2, GURUVAYOOR, OFFICE OF THE INCOME TAX OFFICER, WEST NADA, GURUVAYOOR, THRISSUR-680 101. 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.8179 OF 2020(V) 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.8179 OF 2020(V) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER DATED 21.11.2019 EXHIBIT P2OF DEMAND NOTICE DATED 21.11.2019 EXHIBIT P3OF THE APPEAL DATED 28.12.2019 EXHIBIT P4OF THE ORDER DATED 20.11.2020 EXHIBIT P5OF THE STAY PETITION DATED 24.1.2020 EXHIBIT P6OF THE JUDGMENT DATED 1.7.2019 IN WA 1536 OF 2019

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