AMBALAPAD SERVICE CO-OPERATIVE BANK LTD vs. THE INCOME TAX OFFICER WARD 2 (1)

WP(C)/7667/2020HC KeralaKLHC01020041202012 March 2020Author: HONOURABLE MR.JUSTICE V.G.ARUN4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court, considering the limited nature of the relief sought, disposed of the writ petition. It directed the 2nd respondent (Commissioner of Income Tax (Appeals)) to decide the appeal (Ext.P5) in accordance with law within three months of receiving a copy of the judgment, after providing the petitioner an opportunity of hearing. Crucially, the Court ordered that the demand for remittance of 20% of the tax (Ext.P8) shall be kept in abeyance until the appeal is decided. Furthermore, recovery proceedings based on the assessment order (Ext.P3) were deferred until such time. The principle derived is that pending appeal, the demand for pre-deposit can be stayed if the appellate authority is directed to decide the appeal expeditiously.

What were the facts?

The petitioner, Ambalapad Service Co-operative Bank Ltd., is a primary agricultural credit society. It filed an appeal (Ext.P5) against an assessment order (Ext.P3). The petitioner's grievance is that the Income Tax Officer is insisting on the payment of 20% of the assessed tax pending the appeal's consideration. The petitioner has approached the High Court of Kerala by way of a writ petition (civil) seeking relief regarding this insistence.

What were the issues?

1. Whether the insistence on payment of 20% of the assessed tax pending appeal is legally tenable, considering the pendency of the appeal before the Commissioner of Income Tax (Appeals)? (Question of law) The assessee (petitioner) contended that the insistence on payment of 20% of the assessed tax pending appeal is causing hardship and that the appeal itself should be considered expeditiously. The revenue (respondent) was represented by learned standing counsel, and their specific arguments are not recorded in the judgment.

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 V.G.ARUN THURSDAY, THE 12TH DAY OF MARCH 2020 / 22ND PHALGUNA, 1941 WP(C).No.7667 OF 2020(G) PETITIONER/S: AMBALAPAD SERVICE CO-OPERATIVE BANK LTD.NO. 759, XI/57, KUNDUKAD P.O. THRISSUR 680 028, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.M.SASINDRAN SRI.I.SREEHARI RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 2 (1) AYAKAR BHAVAN, INCOME TAX OFFICE, SHAKTHAN THAMPURAN NAGAR, THRISSUR 680 001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), THRISSUR 680 001. BY SC JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.7667 OF 2020 2 JUDGMENT Dated this the 12th day of March 2020 As against Ext.P3 assessment order, the petitioner, a primary agricultural credit society, has preferred Ext.P5 appeal. The grievance of the petitioner is against the insistance for payment of 20% of the tax assessed, pending consideration of the appeal. 2. I have heard learned standing counsel for the Income Tax department also. 3. Considering the limited nature of the relief sought, this writ petition is disposed of directing the 2nd respondent to take a decision on Exts.5 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. Till such time, Ext.P8 by which the petitioner is called upon to remit 20% of the tax demanded shall be kept in abeyance and recovery proceedings based on WP(C).No.7667 OF 2020 3 Ext.P3 assessment order shall stand deferred. The writ petition is disposed of accordingly. Sd/- V.G.ARUN JUDGE uu 13.03.2020 WP(C).No.7667 OF 2020 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE CERTIFICATE ISSUED BY THE REGISTRAR OF CO- OPERATIVE SOCIETIES (GENERAL), THRISSUR DATED 28.05.2014. EXHIBIT P2 A TRUE COPY OF THE REGISTRATION CERTIFICATE DATED 21.01.2019 ISSUED BY THE ASSISTANT REGISTRAR (GENERAL). EXHIBIT P3

DATED 03.12.2019 FOR THE ASSESSMENT YEAR 2012-2013. EXHIBIT P4 AOF THE DEMAND NOTICE DATED 03.12.2019. EXHIBIT P5 AOF THE APPEAL MEMORANDUM FILED BEFORE THE 2ND RESPONDENT. EXHIBIT P6 AOF THE STAY PETITION FILED BY THE PETITIONER DATED 10.01.2020. EXHIBIT P7 AOF THE JUDGMENT DATED 19.7.2019 IN W.A. NO. 1639 OF 2019. EXHIBIT P8 AOF THE ORDER NO. ITBA/COM/F/17/2019-20/1025776373(1) DATED 26.02.2020.

Recent GST High Court judgments

Search GST case law →