POOVATHUMKADAVU FARMERS SERVICE CO-OP BANK LTD. vs. INCOME TAX OFFICER

WP(C)/4919/2020HC KeralaKLHC01013533202020 February 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 pending appeals (Exts.P3 and P7) within a period of three months from the date of receipt of a copy of the judgment. The court 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 appeals should be decided without insisting on the payment of 20% of the tax demanded, as per a circular issued in 2017. Furthermore, recovery proceedings pursuant to the assessment orders were ordered to be kept in abeyance until a decision was taken on the appeals. The principle established is that the appellate authority should expedite disposal of appeals and that interim relief regarding recovery can be granted pending appeal decision, especially when a circular supports not insisting on pre-deposit.

What were the facts?

The petitioner, Poovathumkadavu Farmers Service Co-op Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction for the disposal of its appeals (Exts.P3 and P7) pending before the Commissioner of Income Tax (Appeals)-2. These appeals were filed against assessment orders (Exts.P1 and P5) passed by the Income Tax Officer, Ward-2(4), Thrissur. The petitioner sought a directive for the expeditious disposal of these appeals.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the pending appeals filed by the petitioner against the assessment orders. The petitioner argued for a direction to dispose of the appeals expeditiously. The revenue did not record any specific arguments against this direction. The issue revolves around the procedural aspect of appeal disposal and the court's power to direct such disposal.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL THURSDAY, THE 20TH DAY OF FEBRUARY 2020 / 1ST PHALGUNA, 1941 WP(C).No.4919 OF 2020(L) PETITIONER/S: POOVATHUMKADAVU FARMERS SERVICE CO-OP BANK LTD. NO.4686, PANAGAD P.O., THRISSUR - 680 665 REPRESENTED BY ITS MANAGING DIRECTOR BY ADVS. SRI.C.A.JOJO SMT.SWATHY S. RESPONDENT/S: 1 INCOME TAX OFFICER WARD-2(4), THRISSUR, AAYAKAR BHAVAN, NEAR SHAKTHANTHAMPURAN NAGAR THRISSUR - 680 001 2 COMMISSIONER OF INCOME TAX (APPEALS)-2 OFFICE OF THE COMMISSIONER OF INCOME TAX, THRISSUR - 680 001 OTHER PRESENT: SRI JOSE JOSEPH,SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.4919 OF 2020(L) 2 JUDGMENT Dated this the 20th day of February 2020 Petitioner has approached this Court seeking a direction to dispose of Exts.P3 and P7 appeals before the second respondent/Commissioner of Income Tax (Appeals) against the assessment orders Exts.P1 and P5. 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 Exts.P3 and P7 appeals 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 orders shall be kept in abeyance. AMIT RAWAL sab JUDGE

WP(C).No.4919 OF 2020(L) 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER AY 2012-13 DATED 13.11.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P2 A TRUE COPY OF THE DEMAND NOTICE U/S156 DATED 13.11.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P3 A TRUE COPY OF THE APPEAL FOR AY 2012-13 BEFORE THE 2ND RESPONDENT DATED 05.12.2019 EXHIBIT P4 A TRUE COPY OF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 14.01.2020 FOR 20% OF TAX EXHIBIT P5 A TRUE COPY OF THE ASSESSMENT ORDER AY 2017-18 DATED 26.11.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P6 A TRUE COPY OF THE DEMAND NOTICE U/S 156 DATED 26.11.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P7 A TRUE COPY OF THE APPEAL FOR AY 2017-18 BEFORE THE 2ND RESPONDENT DATED 24.12.2019 EXHIBIT P8 A TRUE COPY OF THE NOTICE U/S 221(1) ISSUED BY THE 1ST RESPONDENT DATED 14.01.2020

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