THE ANCHAL SERVICE CO-OPERATIVE BANK LTD.NO.2574, vs. THE INCOME TAX OFFICER

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WP(C)/4863/2020HC KeralaKLHC01013290202020 February 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.P3) in accordance with the law. This decision is to be made after providing the petitioner an opportunity of hearing. The disposal is to be completed within three months from the date of receipt of a copy of the judgment. Crucially, the Court directed that the payment of 20% of the tax demanded should not be insisted upon, referencing a circular from 2017. Furthermore, recovery proceedings initiated pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. No issue was expressly left undecided.

What were the facts?

The petitioner, The Anchal 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 had approached the High Court because the appeal was pending before the second respondent. The assessment year(s) are not specified in the judgment. The amount in dispute is not stated. The procedural history involves the filing of an appeal before the CIT(A) and the subsequent writ petition seeking its disposal.

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? The petitioner argued that their appeal before the second respondent (CIT(A)) was pending and they sought a direction for its expeditious disposal. The revenue did not record any specific arguments in the judgment regarding the disposal of the appeal. The core issue revolves around the court's power to direct the appellate authority to decide a pending matter, considering the principles of natural justice and the right to a speedy resolution of tax disputes.

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 THURSDAY, THE 20TH DAY OF FEBRUARY 2020 / 1ST PHALGUNA, 1941 WP(C).No.4863 OF 2020(G) PETITIONER/S: THE ANCHAL SERVICE CO-OPERATIVE BANK LTD.NO.2574, REPRESENTED BY ITS SECRTARY, ANCHAL P.O., KOLLAM DISTRICT, PIN-691 306. BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 1 AND TPS, OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX, KOLLAM RANGE, AAYAKAR BAHVAN, KARBALA JUNCTION, KOLLAM, PIN-691 001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, PIN-695 003. OTHER PRESENT: SRI CHRISTOPHER ABRAHAM,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.4863 OF 2020(G) 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 sab JUDGE

WP(C).No.4863 OF 2020(G) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 20.11.2019. EXHIBIT P2 AOF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 20.11.2019. EXHIBIT P3 AOF THE ONLINE APPEAL DATED 18.12.2019 ALONG WITH GROUNDS OF APPEAL FILED BEFORE THE 2ND RESPONDENT AGAINST EXT.P1 ASSESSMENT ORDER. EXHIBIT P4 AOF THE STAY PETITION FILED ON 14.01.2020 IN EXT.P3 APPEAL. EXHIBIT P5 AOF THE JUDGMENT DATED 19.07.2019 IN WA NO.1639 OF 2019. EXHIBIT P6 AOF THE JUDGMENT DATED 25.11.2019 IN WPC NO.31787 OF 2019.

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