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

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WP(C)/6800/2020HC KeralaKLHC01018021202006 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.P2) in accordance with the law. This decision is to be made after providing the petitioner with an opportunity of hearing, within a period of three months from the date of receiving a copy of the judgment. Crucially, the court directed that the disposal should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings initiated based on the assessment order are to be kept in abeyance until a decision is taken on the appeal. The principle here is that appellate authorities should dispose of appeals expeditiously, and recovery can be stayed pending such disposal, especially when specific conditions (like those in the 2017 circular) are met.

What were the facts?

The petitioner, Palliyackal Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction for the disposal of its appeal (Ext.P2) filed before the Commissioner of Income Tax (Appeals) (2nd respondent). The appeal was against an assessment order (Ext.P1) passed by the Income Tax Officer (1st respondent). The petitioner sought a direction for the expeditious disposal of the appeal. The assessment year(s) are not specified in the judgment.

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. The petitioner argued for a direction to dispose of the appeal expeditiously. The revenue did not record any specific arguments in this regard. The core issue revolves around the procedural delay in the appellate process and the court's power to direct timely disposal. The court's intervention is sought to ensure the appeal is heard and decided within a reasonable timeframe, as per established legal principles governing administrative and quasi-judicial proceedings.

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 FRIDAY, THE 06TH DAY OF MARCH 2020 / 16TH PHALGUNA, 1941 WP(C).No.6800 OF 2020(Y) PETITIONER: PALLIYACKAL SERVICE CO-OPERATIVE BANK LTD. NO.2232, PALLIYACKAL, EZHIKKARA, ERNAKULAM-683513 REPRESENTED BY ITS SECRETARY, SHRI. VIJAYAN M.P. BY ADVS. SRI.T.M.SREEDHARAN (SR.) SMT.NISHA JOHN SRI.V.P.NARAYANAN RESPONDENTS: 1 THE INCOME TAX OFFICER WARD 3, K.A.P. COMMERCIAL COMPLEX, O/O ADDL. CIT, ALUVA RANGE, R.S. ROAD, ALUVA-683101. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) 28/243, POORNIMA, NEAR MANORAMA JUNCTION, PANAMPILLY NAGAR, KOCHI-682 036. SRI CHRISTOPHER ABRAHAM SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.6800 OF 2020(Y) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P2 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.P2 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.6800 OF 2020(Y) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER AND DEMAND NOTICE DATED 19.12.2019 ALONG WITH COMPUTATION OF INCOME ALONG WITH DEMAND OF INCOME TAX FOR AY 2017-18 BY THE IST RESPONDENT. EXHIBIT P2OF THE MEMORANDUM OF APPEAL E- FILED DATED 28.1.2020 FOR THE ASSESSMENT YEAR 2017-18 FILED BEFORE THE 2ND RESPONDENT. EXHIBIT P3OF THE STAY PETITION DATED 28.2.2020 FILED BY THE PETITIONER FOR AY 2017-18 BEFORE THE 2ND RESPONDENT. //// P.A TO JUDGE

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