PUNALUR URBAN CO-OPERATIVE SOCIETY LTD.NO.Q 1508 vs. THE INCOME TAX OFFICER

WP(C)/4853/2020HC KeralaKLHC01013309202020 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 was to be made in accordance with the law, after affording an opportunity of hearing to the petitioner. Crucially, the Court directed that the disposal should not insist on the payment of 20% of the tax demanded, as per a circular issued in 2017. Furthermore, recovery proceedings pursuant to the assessment order were to be kept in abeyance until a decision was taken on the appeal. The principle established is that appellate authorities should be directed to dispose of appeals expeditiously, and interim relief regarding tax payment and recovery can be granted in such directions.

What were the facts?

The petitioner, Punalur Urban Co-operative Society 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 speedy resolution of the appeal pending before the second respondent. The assessment year(s) are not specified in the judgment. The procedural history involves the filing of an appeal before the Commissioner of Income Tax (Appeals) against an assessment order, and the subsequent writ petition seeking a direction for 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 for a direction to the appellate authority to expedite the disposal of their appeal. The revenue did not record any specific arguments against this direction in the judgment. The issue hinges on the court's power to direct the disposal of a pending appeal, considering the petitioner's right to a timely resolution of their tax dispute.

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.4853 OF 2020(F) PETITIONER/S: PUNALUR URBAN CO-OPERATIVE SOCIETY LTD.NO.Q 1508 REPRESENTED BY ITS SECRETARY IN CHARGE, VALACODU P. O., PUNALUR, KOLLAM DISTRICT, PIN - 691 331. BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 2, OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX, KOLLAM RANGE, AAYAKAR BHAVAN, 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.4853 OF 2020(F) 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.4853 OF 2020(F) 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 APPEAL DATED 25.12.2019 ALONG WITH GROUNDS OF APPEAL, FILED BEFORE THE 2ND RESPONDENT, AGAINST EXT.P1 ASSESSMENT ORDER. EXHIBIT P4 AOF THE STAY PETITION FILED BY THE PETITIONER IN EXT.P3 APPEAL DATED 9.1.2020. EXHIBIT P5 AOF THE JUDGMENT DATED 19.7.2019 IN W.A.NO.1639 OF 2019. EXHIBIT P6 AOF THE JUDGMENT DATED 25.11.2019 IN W.P.(C).NO.31787 OF 2019.

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