THE KIZHUVILAM SERVICE CO-OPERATIVE BANK LTD.NO.2405, vs. THE INCOME TAX OFFICER,

WP(C)/7108/2020HC KeralaKLHC01018747202009 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 appeal (Ext.P3) 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 an opportunity of hearing to the petitioner. Crucially, the Court directed that the payment of 20% of the tax demanded should not be insisted upon, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The principle established is that appellate authorities should dispose of appeals expeditiously, and interim relief regarding recovery can be granted pending appeal disposal, especially when a specific circular permits waiver of pre-deposit under certain circumstances.

What were the facts?

The petitioner, The Kizhu vilam 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 an appeal (Ext.P3) filed against an assessment order (Ext.P1). The petitioner is represented by its Secretary-in-Charge. The respondents are the Income Tax Officer, the Commissioner of Income Tax (Appeals), and the General Manager of the Thiruvananthapuram District Co-operative Bank. The assessment order was passed by the Income Tax Officer.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the pending appeal filed by the petitioner. Assessee's contention: The petitioner seeks a direction for the expeditious disposal of its appeal. The judgment does not record specific arguments from the petitioner regarding the merits of the appeal or the grounds for delay. Revenue's contention: The judgment records that the learned counsel for both sides were heard, implying the revenue was represented. However, no specific arguments from the revenue are detailed 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 AMIT RAWAL MONDAY, THE 09TH DAY OF MARCH 2020 / 19TH PHALGUNA, 1941 WP(C).No.7108 OF 2020(K) PETITIONER: THE KIZHUVILAM SERVICE CO-OPERATIVE BANK LTD.NO.2405, REPRESENTED BY ITS SECRETARY-IN-CHARGE, MUDAPURAM P.O., CHIRAYINKEEZH, THIRUVANANTHAPURAM DISTRICT- 695304. BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD-2(5), OFFICE OF THE INCOME TAX OFFICER, AAYAKAR BHAVAN, KOWDIAR P.O., THIRUVANANTHAPURAM DISTRICT- 695003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM-695003. 3 THE GENERAL MANAGER, THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK, HEAD OFFICE, EAST FORT, THIRUVANANTHAPURAM, PIN-695001. SRI CHRISTOPHER ABRAHAM SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.7108 OF 2020(K) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal preferred before the 2nd 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 2nd 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 nak JUDGE

WP(C).No.7108 OF 2020(K) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 20.12.2019. EXHIBIT P2 AOF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 20.12.2019. EXHIBIT P3 AOF THE ONLINE APPEAL DATED 28.12.2019, FILED AGAINST EXT.P1 ASSESSMENT ORDER, BEFORE THE 2ND RESPONDENT. EXHIBIT P4 AOF THE STAY PETITION FILED BY THE PETITIONER IN EXT.P3 APPEAL DATED 18.01.2020. EXHIBIT P5 AOF THE JUDGMENT DATED 19.07.2019 IN W.A.NO.1639 OF 2019. EXHIBIT P6 AOF THE JUDGMENT DATED 17.02.2020 IN WP(C)NO.4433 OF 2020. //// P.A TO JUDGE

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