KOZHIPPILLY SERVICE CO-OPERATIVE BANK LTD., NO.E 167, vs. INCOME TAX OFFICER,

WP(C)/7645/2020HC KeralaKLHC01020083202012 March 2020Author: HONOURABLE MR.JUSTICE V.G.ARUN4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court considered the limited nature of the relief sought by the petitioner. It directed the Commissioner of Income Tax (Appeals) (2nd respondent) to consider the appeals (Exts.P3 and P8) and take a decision thereon in accordance with law. This decision is to be made after affording the petitioner an opportunity of hearing, within a period of three months from the date of receipt of a copy of the judgment. Crucially, the Court ordered that recovery proceedings based on the assessment orders shall be kept in abeyance until a decision is taken on the appeals. The principle established is that in such circumstances, the appellate authority should expedite the decision-making process, and recovery should be stayed pending that decision.

What were the facts?

The petitioner, Kozhippilly Service Co-operative Bank Ltd., is a primary agricultural credit society. It has filed appeals (Exts.P3 and P8) against assessment orders (Exts.P1 and P4) for assessment years 2011-2012 and 2012-2013. The petitioner's grievance is that the Income Tax Officer (1st respondent) is demanding payment of 20% of the tax demand pending the consideration of these appeals. The matter came before the High Court of Kerala at Ernakulam.

What were the issues?

1. Whether the petitioner is liable to pay 20% of the demand pending appeal consideration, as demanded by the Income Tax Officer. The petitioner's contention is that the 1st respondent is demanding payment of 20% of the demand pending consideration of their appeals. The judgment does not explicitly record the revenue's arguments on this point, but it notes that the learned standing counsel for the Income Tax department was heard.

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.7645 OF 2020(E) PETITIONER/S: KOZHIPPILLY SERVICE CO-OPERATIVE BANK LTD., NO.E 167, KOZHIPILLY P.O., KOTHAMANGALAM, PIN - 686 691, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SHRI.ARUN B. RESPONDENT/S: 1 INCOME TAX OFFICER, WARD-1 AND TPS, INCOME TAX OFFICE, TEMPLE ROAD, THODUPUZHA, PIN - 685 584. 2 COMMISSIONER OF INCOME TAX (APPEALS)-2, OFFICE OF THE COMMISSIONER OF INCOME TAX, CENTRAL REVENUE TOWER, KOCHI - 682 018. BY SC CHRISTOPHER ABRAHAM 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.7645 OF 2020 2 JUDGMENT Dated this the 12th day of March 2020 As against Exts.P1 and P4 assessment orders for the years 2011-2012 and 2012-2013, the petitioner, a primary agricultural credit society, has preferred Exts.P3 and P8 appeals. The grievance of the petitioner is that the 1st respondent is demanding payment of 20% of the demand, 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 consider Exts.P3 and P8 appeals and take a decision thereon 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 a decision is taken on the WP(C).No.7645 OF 2020 3 appeals, recovery proceedings based on the assessment orders shall be kept in abeyance. The writ petition is disposed of accordingly. Sd/- V.G.ARUN JUDGE uu 13.03.2020 WP(C).No.7645 OF 2020 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1

AOF THE ASSESSMENT ORDER AY 2011-12 DATED 20/12/2016 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 AOF THE DEMAND NOTICE U/S. 156 DATED 20/12/2016 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 AOF THE APPEAL FOR AY 2011-12 BEFORE THE 2ND RESPONDENT DATED 21/01/2017. EXHIBIT P4 AOF THE ASSESSMENT ORDER FOR AY 2012-13 DATED 25/03/2015 BY THE 1ST RESPONDENT. EXHIBIT P5 AOF THE DEMAND NOTICE U/S. 156 DATED 25/03/2015 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P6 AOF THE RECTIFIED ORDER FOR AY 2012-13 DATED 16/01/2018 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P7 AOF THE DEMAND NOTICE U/S 156 DATED 16/01/2018 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P8 AOF THE APPEAL FOR AY 2012-13 BEFORE THE 2ND RESPONDENT DATED 28/04/2015. EXHIBIT P9 AOF THE DEMAND NOTICE U/S 221(1) DATED 04/03/2020 ISSUED BY THE FIRST RESPONDENT.

Recent GST High Court judgments

Search GST case law →