THE THAIKKAD SERVICE CO-OPERATIVE BANK LTD vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/8161/2020HC KeralaKLHC01021184202017 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 and after affording an opportunity of hearing to the petitioner. Crucially, the court directed that the appeal should be decided without insisting on the payment of 20% of the tax demanded, as per a circular issued in 2017. Until a decision is reached on the appeal, recovery proceedings initiated pursuant to the assessment order are to be kept in abeyance. The ratio decidendi is that appellate authorities should dispose of pending appeals expeditiously, and interim relief regarding recovery can be granted pending such disposal, especially when a circular provides for waiver of pre-deposit under certain circumstances.

What were the facts?

The petitioner, The Thaikkad Service Co-operative Bank Ltd, filed an appeal (Ext.P3) before the Commissioner of Income Tax (Appeals) against an assessment order (Ext.P1) passed by the Income Tax Officer, Ward 2, Guruvayoor. The petitioner approached the High Court of Kerala seeking a direction for the disposal of this pending appeal. The assessment year(s) and the amount in dispute are not specified in the judgment. The procedural history involves the filing of the appeal before the first respondent and the subsequent writ petition seeking its expeditious disposal.

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 timely disposal of its appeal before the first respondent. No specific authorities or precedents are mentioned in relation to this contention. Revenue's contention: The judgment records no specific contention from the revenue regarding the direction for disposal of the appeal. However, the court's direction implies consideration of the revenue's position in the assessment 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.8161 OF 2020(U) PETITIONER/S: THE THAIKKAD SERVICE CO-OPERATIVE BANK LTD NO.F7084, BRAHMAKULAM P. O., THAIKKAD, THRISSUR - 680104, 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 - 680 001. 2 THE INCOME TAX OFFICER WARD 2, GURUVAYOOR, OFFICE OF THE INCOME TAX OFFICER, WEST NADA, GURUVAYOOR, THRISSUR - 680101. 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.8161 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.8161 OF 2020(U) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER DATED 19.11.2019. EXHIBIT P2OF DEMAND NOTICE DATED 19.11.2019. EXHIBIT P3OF THE APPEAL DATED 30.11.2019. EXHIBIT P4OF THE ORDER DATED 17.01.2020. EXHIBIT P5OF THE STAY PETITION DATED 24.01.2020. EXHIBIT P6OF THE JUDGMENT DATED 01.07.2019 IN W.A.1536 OF 2019.

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