THE VENKITANGU FARMER'S CO-OPERATIVE BANK LTD. NO. R 187 vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/8169/2020HC KeralaKLHC01021160202017 March 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition with a direction to the first respondent, 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 and after affording the petitioner an opportunity of hearing. Crucially, the Court directed that the decision should be taken without insisting on the payment of 20% of the tax demanded, as per a circular from 2017. Furthermore, the Court ordered that recovery proceedings pursuant to the assessment order shall be kept in abeyance until such time as a decision is taken on the appeal. The ratio decidendi is that appellate authorities should dispose of appeals expeditiously, and interim relief regarding recovery can be granted pending appeal disposal, especially when supported by circulars.

What were the facts?

The petitioner, The Venkitangu Farmer's 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) pending before the Commissioner of Income Tax (Appeals) (the first respondent). This appeal was filed against an assessment order (Ext.P1) passed by the Income Tax Officer, Ward 2, Guruvayoor (the second respondent). The petitioner sought a timely decision on their appeal.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of the pending appeal of the petitioner? 2. Whether the recovery proceedings should be kept in abeyance until a decision is taken on the appeal? Assessee's Contention: The petitioner bank sought a direction from the High Court for the expeditious disposal of its appeal before the first respondent. The petitioner also sought a stay on recovery proceedings until the appeal is decided. Revenue's Contention: The judgment records no specific contentions from the revenue side regarding the disposal of the appeal or the stay of recovery proceedings.

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.8169 OF 2020(U) PETITIONER/S: THE VENKITANGU FARMER'S CO-OPERATIVE BANK LTD. NO. R 187 VENKITANGU, THRISSUR-680510, REPRESENTED BY ITS MANAGING DIRECTOR. 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 2, 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.8169 OF 2020(U) 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.8169 OF 2020(U) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER ALONG WITH COMPUTATION SHEET DATED 13.11.2019. EXHIBIT P2OF DEMAND NOTICE DATED 13.11.2019. EXHIBIT P3OF THE APPEAL DATED 9.12.2019. EXHIBIT P4OF THE ORDER DATED 17.1.2020. EXHIBIT P5OF THE STAY PETITION DATED 24.1.2020. EXHIBIT P6OF THE JUDGMENT DATED 1.7.2019 IN W.A.1536 OF 2019.

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