THE KOLLAM COOPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK vs. COMMISSIONER OF INCOME TAX(APPEALS),

WP(C)/4931/2020HC KeralaKLHC01013427202020 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.P2) within three months from the date of receipt of a copy of the judgment. This decision is to be taken in accordance with the law, after providing the petitioner an opportunity of hearing. Crucially, the Court directed that the disposal should not insist 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 recovery proceedings can be stayed pending such disposal, especially when a relevant circular provides for waiver of pre-deposit conditions.

What were the facts?

The petitioner, The Kollam Cooperative Agricultural and Rural Development Bank, filed a writ petition before the High Court of Kerala seeking a direction for the disposal of its appeal (Ext.P2) before the Commissioner of Income Tax (Appeals) (first respondent). This appeal was filed against an assessment order (Ext.P1) passed by the Income Tax Officer (second respondent). The petitioner sought a speedy resolution of its appeal. The Court heard both parties and considered the relevant circulars.

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? (Question of procedure/administrative direction). Assessee's Contention: The petitioner bank sought a direction for the expeditious disposal of its appeal before the first respondent. Revenue's Contention: The judgment records that the revenue was heard, but their specific contentions are not detailed. However, the Court's direction to dispose of the appeal without insisting on 20% of the tax demanded suggests that this condition might have been a point of contention or a standard practice the revenue sought to uphold.

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.4931 OF 2020(N) PETITIONER/S: THE KOLLAM COOPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK NO.Q-167, KOLLAM-691001, REPRESENTED BY ITS SECRETARY MRS. SOUMYA B.K. BY ADVS. SRI.A.KUMAR SRI.P.J.ANILKUMAR SMTG.MINI(1748) SRI.P.S.SREE PRASAD SRI.AJAY V.ANAND RESPONDENT/S: 1 COMMISSIONER OF INCOME TAX(APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM-695003. 2 INCOME TAX OFFICER, WARD-4, KOLLAM, AAYAKAR BHAVAN, INCOME TAX OFFICE, NEAR KARBALA JUNCTION, RAILWAY STATION ROAD, KOLLAM- 691001. 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.4931 OF 2020(N) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P2 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.P2 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.4931 OF 2020(N) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER DATED 28.11.2019. EXHIBIT P2OF APPEAL IN FORM 35. EXHIBIT P3OF STAY PETITION. EXHIBIT P4OF JUDGMENT OF ITAT ORDER DATED 03.09.2018. EXHIBIT P5OF THE JUDGMENT OF THE HON'BLE DIVISION BENCH IN WRIT APPEAL 1529/2019 DATED 1.7.2019.

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