M/S.NALUNNAKKAL SERVICE CO-OPERATIVE BANK LTD., vs. COMMISSIONER OF INCOME TAX (APPEALS),

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WP(C)/4952/2020HC KeralaKLHC01013414202020 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 appeal (Ext.P3) within a period of three months from the date of receipt of a copy of the judgment. This decision is to be made 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 are to be kept in abeyance until a decision is taken on the appeal. The ratio decidendi is that appellate authorities should dispose of pending appeals expeditiously, and interim relief regarding tax payment and recovery can be granted pending appeal disposal, considering relevant circulars.

What were the facts?

The petitioner, M/s. Nalunnakkal Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction for the disposal of their appeal (Ext.P3) pending before the Commissioner of Income Tax (Appeals). This appeal was filed against an assessment order (Ext.P1) passed by the Income Tax Officer, Ward 4, Tiruvalla Range. The petitioner sought a directive for the appellate authority to expedite the decision on their appeal. The assessment year(s) are not specified in the judgment. The dispute involves an assessment order and a pending appeal.

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 they have filed an appeal before the Commissioner of Income Tax (Appeals) and sought a direction for its disposal. The revenue's contentions are not explicitly recorded in the judgment. The judgment does not name any specific authorities, circulars, or precedents relied upon by either party in their arguments before the High Court.

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.4952 OF 2020(T) PETITIONER/S: M/S.NALUNNAKKAL SERVICE CO-OPERATIVE BANK LTD., NALUNNAKKAL.P.O., VAKATHANAM, KOTTAYAM DIST., PIN-686538, REPRESENTED BY ITS SECRETARY MR.SHAJI JOSEPH. BY ADVS. SRI.A.KUMAR SRI.P.J.ANILKUMAR SMTG.MINI(1748) SRI.P.S.SREE PRASAD SHRI.ABRAHAM JOB SRI.AJAY V.ANAND RESPONDENT/S: 1 COMMISSIONER OF INCOME TAX (APPEALS), PUBLIC LIBRARY BUILDING, SASTRI ROAD, KOTTAYAM-686001. 2 INCOME TAX OFFICER, WARD 4, TIRUVALLA RANGE, T K ROAD, THIRUVALLA-689101. SC, JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal preferred before the first 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 first 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.4952 OF 2020(T) 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER DATED 23.12.2019. EXHIBIT P2OF NOTICE OF DEMAND UNDER SECTION 156. EXHIBIT P3OF APPEAL FILED INFORM 35. EXHIBIT P4OF STAY APPLICATION. EXHIBIT P5OF THE JUDGMENT OF THE HON'BLE DIVISION BENCH IN WRIT APPEAL 1529/2019 DATED 1.7.2019.

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