M/S KARAKULAM SERVICE CO-OPERATIVE BANK LTD vs. THE INCOME TAX OFFICER

WP(C)/6303/2020HC KeralaKLHC01016803202003 March 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala disposed of the writ petition by directing the Commissioner of Income Tax (Appeals) (2nd respondent) to take a decision on the pending appeal (Ext.P2) in accordance with the law. The Court mandated that this decision be made after affording an opportunity of hearing to the petitioner within three months from the date of receipt 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 pursuant to the assessment order were ordered to be kept in abeyance until a decision is taken on the appeal. No specific issue regarding the merits of the assessment or appeal was decided.

What were the facts?

The petitioner, M/s Karakulam Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction for the disposal of an 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 to the Commissioner of Income Tax (Appeals) to decide the appeal expeditiously. The Court heard both parties and issued directions regarding the disposal of the appeal.

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? (Question of procedure) Assessee's Contention: The petitioner sought a direction for the expeditious disposal of their appeal before the Commissioner of Income Tax (Appeals). Revenue's Contention: The judgment records that the learned counsel for both sides were heard, implying the revenue was represented and heard, but their specific contentions are not detailed in the provided text.

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.6303 OF 2020(K) PETITIONER/S: M/S KARAKULAM SERVICE CO-OPERATIVE BANK LTD, KP-1/382, KARAKULAM P.O.NEDUMANGAD, TRIVANDRUM-695 564,REPRESENTED BY ITS SECRETARY, SHRI. K. PADMAKUMAR. BY ADVS. SRI.T.M.SREEDHARAN (SR.) SMT.NISHA JOHN SRI.V.P.NARAYANAN RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD 2(3), AAYAKKAR BHAVAN, THIRUVANANTHAPURAM-695 003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM-695 003. BY SRI CHRISTOPHER ABRAHAM 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.6303 OF 2020 2 JUDGMENT Dated this the 3rd day of March 2020 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

WP(C).No.6303 OF 2020 3 proceedings pursuant to the assessment order shall be kept in abeyance. AMIT RAWAL JUDGE uu 03.03.2020

WP(C).No.6303 OF 2020 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER AND DEMAND NOTICE DATED 20.12.2019 ALONG WITH COMPUTATION OF INCOME ALONG WITH DEMAND OF INCOME TAX FOR AY 2012-13 BY THE 1ST RESPONDENT EXHIBIT P2OF THE MEMORANDUM OF APPEAL E-FILED DATED 22.1.2020 FOR THE ASSESSMENT YEAR 2012-13 FILED BEFORE THE 2ND RESPONDENT EXHIBIT P3OF THE STAY PETITION DATED 15.1.2020 FILED BY THE PETITIONER FOR AY-2012-13 BEFORE THE 2ND RESPONDENT

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