EDANAD SERVICE CO-OPERATIVE BANK LTD. vs. COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/5180/2020HC KeralaKLHC01013986202024 February 2020Author: HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala directed the Commissioner of Income Tax (Appeals) to dispose of the appeal filed by M/s. Edanad Service Co-operative Bank Ltd. within a period of two months from the date of notice to the petitioner. The Court further ordered that recovery proceedings shall be kept in abeyance until the disposal of the appeal. The reasoning behind the decision is to ensure timely resolution of the assessee's grievance and to prevent undue hardship through recovery actions while the appeal is pending. The principle established is that the High Court can direct quasi-judicial authorities to expedite proceedings and grant interim relief in appropriate cases. No issues were expressly left undecided.

What were the facts?

The petitioner, M/s. Edanad Service Co-operative Bank Ltd., filed an appeal before the Commissioner of Income Tax (Appeals), the first respondent, against an assessment order. The Income Tax Officer, Ward 3, Kottayam, is the second respondent. The present writ petition was filed by the Co-operative Bank seeking directions from the High Court of Kerala. The assessment year(s) and the specific assessment order or action under challenge are not explicitly stated in the judgment. The amount in dispute is also not mentioned. The procedural history is limited to the filing of the appeal before the CIT(A) and the subsequent filing of this writ petition.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of the pending appeal within a specified period? (Question of procedure) 2. Whether recovery proceedings should be kept in abeyance until the disposal of the appeal? (Question of procedure) Assessee's Contentions: The petitioner, M/s. Edanad Service Co-operative Bank Ltd., implicitly contended that the disposal of its appeal before the CIT(A) was being delayed, and therefore, sought a direction for expeditious disposal. They also sought a stay on recovery proceedings pending the appeal. Revenue's Contentions: The judgment does not record any specific contentions made by the respondents (Commissioner of Income Tax (Appeals) and Income Tax Officer).

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE MONDAY, THE 24TH DAY OF FEBRUARY 2020 / 5TH PHALGUNA, 1941 WP(C).No.5180 OF 2020(V) PETITIONER: M/S. EDANAD SERVICE CO-OPERATIVE BANK LTD. VII/148, EDANADU, VALLICHIRA, PALA, KOTTAYAM DIST., PIN - 686 574. REPRESENTED BY ITS SECRETARY, MR. REMESH KUMAR P. S. BY ADVS. SRI.A.KUMAR SRI.P.J.ANILKUMAR SMTG.MINI(1748) SRI.P.S.SREE PRASAD SHRI.ABRAHAM JOB SRI.AJAY V.ANAND RESPONDENTS: 1 COMMISSIONER OF INCOME TAX (APPEALS) PUBLIC LIBRARY BUILDING, SASTRI ROAD, KOTTAYAM - 686 001. 2 INCOME TAX OFFICER WARD 3, INCOME TAX OFFICE, PUBLIC LIBRARY BUILDING, SASTRI ROAD, KOTTAYAM - 686 001. JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.5180 OF 2020(V) ..2.. JUDGMENT Dated this the 24th day of February 2020 The petitioner, who is a Co-operative Bank, filed appeal before the 1st respondent as against the assessment. In the light of pendency of appeal, the 1st respondent is directed to dispose the appeal within a period of two months after notice to the petitioner.

Till then, the recovery proceedings shall be kept in abeyance. This writ petition is disposed of as above. A.MUHAMED MUSTAQUE JUDGE PR/24.02.2020

WP(C).No.5180 OF 2020(V) ..3..

Appendix — schedule of exhibits

APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DTED 29.12.2019. EXHIBIT P2 TRUE COPY OF NOTICE OF DEMAND UNDER SECTION 156. EXHIBIT P3 TRUE COPY OF APPEAL FILED IN FORM 35 DATED 24.1.2020. EXHIBIT P4 TRUE COPY OF STAY APPLICATION DATED 4.2.2020. EXHIBIT P5 TRUE COPY OF THE JUDGMENT OF THE HON'BLE DIVISION BENCH IN WRIT APPEAL 1529/2019 DATED 1.7.2019.

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