THE ARAKUZHA SERVICE CO-OPERATIVE BANK LTD. vs. INCOME TAX OFFICER

WP(C)/7240/2020HC KeralaKLHC01019116202010 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 appeals (Exts.P3 and P6) 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, after providing the petitioner an opportunity of hearing. Crucially, the Court ordered that the disposal 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 a decision is taken on the appeals. The Court did not decide on the merits of the appeals themselves, but rather on the procedural aspect of their disposal.

What were the facts?

The petitioner, Arakuzha 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 appeals filed against assessment orders. The appeals, marked as Exts.P3 and P6, were preferred against assessment orders Exts.P1 and P4. The petitioner sought a directive for the speedy disposal of these appeals by the second respondent, the Commissioner of Income Tax (Appeals). The assessment orders were passed by the Income Tax Officer, Ward 1 and TPS, Thodupuzha.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of the pending appeals filed by the assessee. (Question of procedure) Assessee's Contention: The assessee sought a direction for the expeditious disposal of their appeals (Exts.P3 and P6) before the Commissioner of Income Tax (Appeals) against the assessment orders (Exts.P1 and P4). Revenue's Contention: The judgment records that the learned counsel on both sides were heard, implying the revenue was represented and had an opportunity to present its case, though specific arguments are not detailed.

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 10TH DAY OF MARCH 2020 / 20TH PHALGUNA, 1941 WP(C).No.7240 OF 2020(D) PETITIONER: THE ARAKUZHA SERVICE CO-OPERATIVE BANK LTD.NO. 493, ARAKUZHA P O, MUVATTUPUZHA, PIN-686672. REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SRI.MATHEWS JOSEPH RESPONDENTS: 1 INCOME TAX OFFICER, WARD 1 AND TPS, INCOME TAX OFFICE, TEMPLE ROAD, THODUPUZHA P O, PIN-685584. 2 COMMISSIONER OF INCOME TAX (APPEALS)-2, OFFICE OF THE COMMISSIONER OF INCOME TAX, CENTRAL REVENUE TOWER, KOCHI-682018. OTHER PRESENT: SRI CHRISTOPHER ABRAHAM SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.7240 OF 2020 -2-

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Exts.P3 and P6 appeals preferred 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 vv JUDGE

WP(C).No.7240 OF 2020 -3- APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE RE ASSESSMENT ORDER FOR AY 2014-15 DATED 09.05.2019 BY THE 1ST RESPONDENT. EXHIBIT P2 AOF THE DEMAND NOTICE U/S. 156 DATED 19.12.2016 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 AOF THE APPEAL AY 2014-15 BEFORE THE 2ND RESPONDENT DATED 06.03.2020. EXHIBIT P4 AOF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 17.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P5 AOF THE DEMAND NOTICE U/S. 156 DATED 17.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P6 AOF THE APPEAL FOR 1Y 2017- 18 BEFORE THE 2ND RESPONDENT DATED 16.01.2020. EXHIBIT P7 AOF THE NOTICE OF DEMAND DATED 11.02.2020 FOR 20% OF TAX FOR AY 2014-15 AND 2017-18 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P8 AOF THE NOTICE OF DEMAND DATED 23.10.2019 FOR 20% OF TAX FOR AY 2014-15 AND 2018-19 ISSUED BY THE 1ST RESPONDENT. //// PA TO JUDGE

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