THE PALLIPPURAM SERVICE CO OPERATIVE BANK LTD. NO. 1308 vs. INCOME TAX OFFICER

WP(C)/6529/2020HC KeralaKLHC01017198202004 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. The Court also specified that the decision should be taken in accordance with law, after affording an opportunity of hearing to the petitioner. Crucially, the Court directed that the Commissioner should not insist on the payment of 20% of the tax demanded, as per a circular of 2017. Until a decision is taken on the appeal, recovery proceedings pursuant to the assessment order are to be kept in abeyance. The ratio is that a statutory authority should be directed to dispose of pending appeals expeditiously, and interim relief regarding recovery can be granted pending such disposal, considering relevant circulars.

What were the facts?

The petitioner, The Pallippuram Service Co Operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction to dispose of its appeal (Ext.P3) pending before the Commissioner of Income Tax (Appeals). The appeal was filed against an assessment order (Ext.P1). The petitioner sought a directive for the Commissioner to decide the appeal expeditiously. The assessment year(s) and the specific amount in dispute are not recorded in the judgment. The procedural history involves the filing of the appeal before the Commissioner and the subsequent writ petition to expedite its disposal.

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 the Commissioner to decide its appeal. The revenue did not record any specific arguments in the judgment. The issue revolves around the court's power to direct the expeditious disposal of an appeal pending before a statutory authority, particularly in light of a circular regarding payment of 20% of the tax demanded.

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 04TH DAY OF MARCH 2020 / 14TH PHALGUNA, 1941 WP(C).No.6529 OF 2020(M) PETITIONER/S: THE PALLIPPURAM SERVICE CO OPERATIVE BANK LTD. NO. 1308 PALLIPPURAM P.O., CHERTHALA, ALAPPUZHA-688 541, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.C.A.JOJO RESPONDENT/S: 1 INCOME TAX OFFICER WARD-3, ALAPPUZHA, ALAPPUZHA-688 011. 2 COMMISSIONER OF INCOME TAX (APPEALS), OFFICE OF THE COMMISSIONER OF INCOME TAX, KOTTAYAM-686 001. OTHER PRESENT: SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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 sab JUDGE

WP(C).No.6529 OF 2020(M) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 22.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 AOF THE DEMAND NOTICE UNDER SECTION 156 DATED 22.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 AOF THE APPEAL FOR AY 2017-18 BEFORE THE 2ND RESPONDENT DATED 08.01.2020. EXHIBIT P4 AOF THE LETTER OF DEMAND DATED 07.02.2020 ISSUED BY THE 1ST RESPONDENT.

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