THE CHAVAKKAD SERVICE CO-OPERATIVE BANK LTD.NO.F.9991, vs. THE COMMISSIONER OF INCOME TAX (APPEALS),

WP(C)/8167/2020HC KeralaKLHC01021157202017 March 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the Commissioner of Income Tax (Appeals) to decide the appeals (Exts.P3 and P8) in accordance with law. This decision was to be made after affording an opportunity of hearing to the petitioner. The court specified that the disposal should occur 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, until a decision was taken on the appeals, recovery proceedings pursuant to the assessment orders were to be kept in abeyance. The court did not decide on the merits of the appeals themselves, but rather on the procedural aspect of their disposal.

What were the facts?

The petitioner, The Chavakkad Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction to the Commissioner of Income Tax (Appeals) to dispose of their pending appeals and interim applications. These appeals were filed against assessment orders passed by the Income Tax Officer. The petitioner sought a directive for the expeditious disposal of these matters, which were pending before the first respondent, the Commissioner of Income Tax (Appeals). The writ petition was filed seeking to expedite the appellate process and to ensure that recovery proceedings were stayed until a decision was rendered.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of the pending appeals and interim applications filed by the petitioner? (Question of procedure and administrative direction). The petitioner sought a direction for the speedy disposal of their appeals (Exts.P3 and P8) and interim applications (Exts.P5 and P10) before the Commissioner of Income Tax (Appeals). The petitioner's contention was that these matters were pending and required a decision. The revenue did not record any specific contention against the direction for disposal, but the court's order implies the revenue was heard. The core issue was the delay in the appellate process and the need for a judicial directive to expedite it.

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.8167 OF 2020(U) PETITIONER/S: THE CHAVAKKAD SERVICE CO-OPERATIVE BANK LTD.NO.F.9991, CHAVAKKAD P.O, THRISSUR-680506, 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, THRISSUR, 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.8167 OF 2020(U) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Exts.P3 and P8 appeals and Exts.P5 and P10 interim

applications

preferred

before

the first respondent/Commissioner of Income Tax (Appeals) against the assessment orders Exts.P1 and P6. 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 Exts.P3 and P8 appeals appeals 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 orders shall be kept in abeyance. AMIT RAWAL sab JUDGE

WP(C).No.8167 OF 2020(U) 3

WP(C).No.8167 OF 2020(U) 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER DATED 19.11.2019 ALONG WITH THE COMPUTATION SHEET. EXHIBIT P2OF THE DEMAND NOTICE DATED 19.11.2019. EXHIBIT P3OF THE APPEAL DATED 18.12.2019. EXHIBIT P4OF THE ORDER DATED 17.01.2020. EXHIBIT P5OF THE STAY PETITION DATED 30.01.2020. EXHIBIT P6OF THE ASSESSMENT ORDER DATED 20.11.2019. EXHIBIT P7OF THE DEMAND NOTICE DATED 20.11.2019. EXHIBIT P8OF THE APPEAL DATED 20.12.2019. EXHIBIT P9OF THE ORDER DATED 17.01.2020. EXHIBIT P10OF THE STAY PETITION DATED 30.01.2020. EXHIBIT P11OF THE JUDGMENT DATED 01.07.2019 IN W.A.NO.1536 OF 2019.

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