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

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WP(C)/5431/2020HC KeralaKLHC01014584202003 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.P2) in accordance with the law. This decision is to be made after providing the petitioner an opportunity of hearing, within three months from the date of receiving a copy of the judgment. 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 initiated based on the assessment order are to be kept in abeyance until a decision is taken on the appeal. The ratio decidendi is that pending appeals should be disposed of expeditiously, and recovery can be stayed pending such disposal, with specific directions on pre-deposit requirements based on circulars.

What were the facts?

The petitioner, Anakara Service Co-operative Bank Ltd, filed an appeal (Ext.P2) before the Commissioner of Income Tax (Appeals) against an assessment order (Ext.P1). The petitioner approached the High Court of Kerala seeking a direction for the disposal of this pending appeal. The assessment year(s) and the specific authority that passed the assessment order are not explicitly stated in the judgment. The amount in dispute is also not mentioned. The procedural history involves the filing of the appeal before the CIT(A) and the subsequent writ petition seeking its expeditious disposal.

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? The petitioner contended that their appeal before the second respondent (CIT(A)) is pending and sought a direction for its disposal. The revenue did not record any specific arguments against the direction for disposal of the appeal.

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 03RD DAY OF MARCH 2020 / 13TH PHALGUNA, 1941 WP(C).No.5431 OF 2020(D) PETITIONER/S: ANAKKARA SERVICE CO-OPERATIVE BANK LTD 01 KUMBIDI P.O. PALAKKAD, , PALAKKAD 679 553, KERALA, REPRESENTED BY ITS SECRETARY SHRI. T. E ANIL KUMAR. BY ADVS. SRI.T.M.SREEDHARAN (SR.) SRI.V.P.NARAYANAN SMT.DIVYA RAVINDRAN SMT.NISHA JOHN RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD-3, AAYAKAR BHAVAN, PALAKKAD 678 014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAWAN, SAKTHAN THAMPURAN NAGAR, THRISSUR 680 001. OTHER PRESENT: SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.5431 OF 2020(D) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P2 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.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 sab JUDGE

WP(C).No.5431 OF 2020(D) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF ASSESSMENT ORDER DATED 19.12.2019 FOR AY-2017-18 ALONG WITH DEMAVEND NOTICE AND COMPUTATION STATEMENT PASSED BY THE 1ST RESPONDENT. EXHIBIT P2OF THE MEMORANDUM OF APPEAL DATED 12.1.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2017-18. EXHIBIT P3OF THE STAY PETITION DATED 18.2.2020 FILED BY THE PETITIONER FOR AY 2017-18 BEFORE THE 2ND RESPONDENT. EXHIBIT P4OF THE APPLICATION U/S 220 (6) OF THE ACT DATED 18.2.2020 SUBMITTED BEFORE THE 1ST RESPONDENT.

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