PAZHAYANNUR FARMERS SERVICE CO-OPERATIVE BANK LTD NO.71 vs. INCOME TAX OFFICER,

WP(C)/7344/2020HC KeralaKLHC01019196202011 March 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the second respondent, the Commissioner of Income Tax (Appeals), to decide the appeals (Exts.P3 and P6) within a period of three months from the date of receipt of a copy of the judgment. This decision is to be made in accordance with the law, after providing the petitioner with an opportunity of hearing. Crucially, the court ordered that the Commissioner should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment orders are to be kept in abeyance until the appeals are decided. The court did not decide on the merits of the appeals themselves, but rather on the procedural aspect of their timely disposal.

What were the facts?

The petitioner, Pazhayannur Farmers Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction for the disposal of appeals filed before the Commissioner of Income Tax (Appeals). These appeals, marked as Exts.P3 and P6, were against assessment orders Exts.P1 and P4. The petitioner sought a directive for the Commissioner of Income Tax (Appeals) to decide these appeals. The assessment orders were passed by the Income Tax Officer, Ward-2(4), Range-2.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the pending appeals filed by the petitioner? Assessee's Contention: The petitioner bank sought a direction from the High Court to the Commissioner of Income Tax (Appeals) to expedite the decision on their pending appeals against the assessment orders. The petitioner also sought a stay on recovery proceedings until a decision was rendered. Revenue's Contention: The judgment does not record any specific contentions raised by the revenue. However, the court's direction implies that the revenue would be bound by the outcome of the appeal process.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

WP(C).No.7344 OF 2020(P) 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL WEDNESDAY, THE 11TH DAY OF MARCH 2020 / 21ST PHALGUNA, 1941 WP(C).No.7344 OF 2020(P) PETITIONER/S: PAZHAYANNUR FARMERS SERVICE CO-OPERATIVE BANK LTD NO.71 PAZHAYANNUR P.O., THRISSUR-680 587, REPRESENTED BY ITS MANAGING DIRECTOR. BY ADVS. SRI.C.A.JOJO SMT.SWATHY S. RESPONDENT/S: 1 INCOME TAX OFFICER, WARD-2(4), RANGE-2, AYANKAR BHAVAN, SHAKTHANTHAMPURAM NAGAR, PIN-680 001. 2 COMMISSIONER OF INCOME TAX (APPEALS), OFFICE OF THE COMMISSIONER OF INCOME TAX, THRISUSR H.P.P.O., PIN-680 001. SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.7344 OF 2020(P) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Exts.P3 and P6 appeals referred before the second respondent/Commissioner of Income Tax (Appeals) against the assessment orders Exts.P1 and P4. 2. Having heard the learned counsel on both sides, the writ petition is disposed of with a direction to the second respondent to take a decision on Exts.P3 and P6 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 JUDGE Jm/

WP(C).No.7344 OF 2020(P) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR AY 2009-10 DATED 20.12.2016 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 AOF THE DEMAND NOTICE UNDER SECTION 156 DATED 20.12.2016 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 AOF THE APPEAL FOR AY 2009-10 DATED 01.02.2017 BEFORE THE 2ND RESPONDENT. EXHIBIT P4 AOF THE ASSESSMENT ORDER FOR AY 2010-11 DATED 29.11.2017 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P5 AOF THE DEMAND NOTICE UNDER SECTION 156 DATED 16.07.2018 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P6 AOF THE APPEAL FOR AY 2010-11 BEFORE THE 2ND RESPONDENT DATED 03.01.2018. EXHIBIT P7 AOF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 02.03.2020 FOR 20% OF TAX.

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