PANAVALLY VILLAGE SEVICE CO-OPERATIVE BANK LTD NO.1249 vs. INCOME TAX OFFICER

WP(C)/7345/2020HC KeralaKLHC01019512202011 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 appeal (Ext.P3) in accordance with the law. This decision is to be made after providing an opportunity of hearing to the petitioner. The court specified that the disposal should occur within three months from the date of receiving a copy of the judgment. Crucially, the court ordered that the Commissioner should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Until a decision is reached on the appeal, recovery proceedings initiated based on the assessment order (Ext.P1) are to be kept in abeyance. The court did not decide on the merits of the appeal itself, but rather on the procedural aspect of its timely disposal.

What were the facts?

The petitioner, Panavally Village 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 appeal. The appeal, marked as Ext.P3, was filed against an assessment order, Ext.P1. The petitioner was represented by their Secretary in Charge, and the respondents were the Income Tax Officer and the Commissioner of Income Tax (Appeals). The procedural history involves the filing of the appeal before the second respondent (Commissioner of Income Tax (Appeals)) against the assessment order.

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 sought a direction for the expeditious disposal of their appeal (Ext.P3) pending before the Commissioner of Income Tax (Appeals) against the assessment order (Ext.P1). Revenue's Contention: The judgment records that the learned counsel for both sides were heard, implying the revenue was represented and had an opportunity to present its case, though specific arguments are not detailed. The court's direction to dispose of the appeal without insisting on 20% of the tax demanded suggests a potential point of contention regarding pre-deposit requirements, but the revenue's specific stance on this is not explicitly recorded.

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 WEDNESDAY, THE 11TH DAY OF MARCH 2020 / 21ST PHALGUNA, 1941 WP(C).No.7345 OF 2020(P) PETITIONER/S: PANAVALLY VILLAGE SEVICE CO-OPERATIVE BANK LTD NO.1249 TRICHATTUKULAM P.O., CHERTHALA, ALAPPUZHA-688 526 REPRESENTED BY ITS SECRETARY IN CHARGE. BY ADVS. SRI.C.A.JOJO SHRI.ARUN B. RESPONDENT/S: 1 INCOME TAX OFFICER WARD-3, ALAPPUZHA P.O., ALAPPUZHA-688 011. 2 COMMISSIONER OF INCOME TAX (APPEALS) OFFICE OF THE COMMISSIONER OF INCOME TAX, KOTTAYAM TOWN P.O., PIN-686 001. OTHER PRESENT: 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.7345 OF 2020(P) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal preferred before the second 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 second 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 JUDGE Jm/

WP(C).No.7345 OF 2020(P) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 26.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 AOF THE DEMAND NOTICE U/S 156 DATED 26.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 AOF THE APPEAL FOR AY 2017-18 BEFORE THE 2ND RESPONDENT DATED 13.1.2020. EXHIBIT P4 AOF THE LETTER OF 20% DEMAND DATED 5.3.2020 ISSUED BY THE IST RESPONDENT.

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