THE NAGAROOR SERVICE CO-OPERATIVE BANK LTD.NO.T 219 vs. THE INCOME TAX OFFICER, WARD-2(5)

WP(C)/6250/2020HC KeralaKLHC01016540202002 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 filed by the petitioner within a period of three months from the date of receipt of a copy of the judgment. The disposal should be in accordance with the law and after affording an opportunity of hearing to the petitioner. Crucially, the court directed that the appeal should be decided without insisting on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment order were to be kept in abeyance until a decision was taken on the appeal. The ratio is that appellate authorities should dispose of pending appeals expeditiously, and recovery can be stayed pending such disposal, with specific conditions on pre-deposit being subject to relevant circulars.

What were the facts?

The petitioner, The Nagarur 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 its appeal. The appeal was filed against an assessment order passed by the Income Tax Officer. The petitioner sought a directive for the expeditious disposal of the appeal, which was pending before the second respondent. The assessment year(s) are not specified in the judgment. The procedural history involves the filing of an appeal against an assessment order, and the current petition is to expedite the appellate process.

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? (Question of procedure/administration of justice) Assessee's Contention: The petitioner bank seeks a direction for the timely disposal of its appeal against the assessment order. The petitioner relies on the general principle of expeditious disposal of appeals and the need for the appellate authority to act on pending matters. Revenue's Contention: The judgment does not record any specific contentions raised by the revenue in response to the writ petition. However, the court's direction implies that the revenue's position, if any, regarding the delay or the conditions for disposal was considered.

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 02ND DAY OF MARCH 2020 / 12TH PHALGUNA, 1941 WP(C).No.6250 OF 2020(E) PETITIONER: THE NAGAROOR SERVICE CO-OPERATIVE BANK LTD.NO.T 219 REPRESENTED BY ITS SECRETARY, ALTHARAMOODU P.O, ALAMOODU, THIRUVANANTHAPURAM DISTRICT 695 102 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, KAWDIAR P.O, THIRUVANANTHAPURAM PIN 695 003 2 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM PIN 695 003 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.6250 OF 2020 -2-

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 vv JUDGE

WP(C).No.6250 OF 2020 -3- APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 18-12- 2019 EXHIBIT P2 AOF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 18-12-2019 EXHIBIT P3 AOF THE ONLINE APPEALD ATED 07-01-2020, 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 09-01-2020 EXHIBIT P5 AOF THE JUDGMENT DATD 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 //// PA TO JUDGE

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