KOTHAVARA SERVICE CO-OPERATIVE BANK LTD NO. 509 vs. THE CENTRAL BOARD OF DIRECT TAXES

WP(C)/4793/2020HC KeralaKLHC01012992202019 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, after providing the petitioner with an opportunity of hearing. Crucially, the court directed that the appeal 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 order are to be kept in abeyance until a decision is taken on the appeal. The principle established is that appellate authorities should dispose of appeals expeditiously and that interim relief regarding tax demands and recovery can be granted pending appeal disposal, referencing a circular.

What were the facts?

The petitioner, Kothavara Service Co-operative Bank Ltd, filed a writ petition before the High Court of Kerala seeking a direction to dispose of its appeal (Ext.P3) pending before the Commissioner of Income Tax (Appeals) (third respondent). This appeal was filed against an assessment order (Ext.P2). The petitioner sought a direction for the expeditious disposal of the appeal. The respondents were the Central Board of Direct Taxes, the Income Tax Officer, and the Commissioner of Income Tax (Appeals). The assessment year(s) are not specified in the judgment.

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? Assessee's contention: The petitioner sought a direction for the timely disposal of its appeal. The judgment does not explicitly record the petitioner's arguments beyond this request. Revenue's contention: The judgment does not explicitly record the revenue's arguments. However, the court's direction implies that the revenue, through its representative (the Commissioner of Income Tax (Appeals)), was expected to act on the appeal.

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 WEDNESDAY, THE 19TH DAY OF FEBRUARY 2020 / 30TH MAGHA, 1941 WP(C).No.4793 OF 2020(Y) PETITIONER/S: KOTHAVARA SERVICE CO-OPERATIVE BANK LTD NO. 509 KOTHAVARA POST, VAIKOM, KOTTAYAM - 686 607, REPRESENTED BY ITS SECRETARY SRI V. S. ANILKUMAR. BY ADVS. DR.K.P.PRADEEP SRI.T.T.BIJU SMT.T.THASMI RESPONDENT/S: 1 THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI - 110001, REPRESENTED BY ITS CHAIRMAN. 2 INCOME TAX OFFICER WARD 2, INCOME TAX OFFICE, PUBLIC LIBRARY BUILDING, SASTRI ROAD, KOTTAYAM - 686 608. 3 COMMISSIONER OF INCOME TAX (APPEALS) INCOME TAX OFFICE, SASTRI ROAD, KOTTAYAM - 686 608. OTHER PRESENT: SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.4793 OF 2020(Y) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal preferred before the third respondent/Commissioner of Income Tax (Appeals) against the assessment order Ext.P2. 2. Having heard the learned counsel on both sides, the writ petition is disposed of with a direction to the third 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.4793 OF 2020(Y) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE RETURN OF INCOME DATED 9.2.2018 FOR THE ASSESSMENT YEAR 2017-18 IN PAN - AAEAT5270E WITH ACKNOWLEDGEMENT NO.390833341090218. EXHIBIT P2OF THE ASSESSMENT ORDER NO.ITBA/AST/S/143(3)/2019-20/1022802323(1) DATED 21.12.2019 ISSUED FOR THE YEAR 2017- 18 BY THE 2ND RESPONDENT. EXHIBIT P3OF THE APPEAL DATED 20.1.2020 FILED BEFORE THE 3RD RESPONDENT FOR THE YEAR 2017-18. EXHIBIT P4OF THE DEMAND NOTICE NO.ITBA/AST/S/156/2019-20/1022802344(1) IN PAN-AAEAT5270E DATED 21.12.2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P5OF THE STAY APPLICATION FILED ON 13.2.2020 BEFORE THE 3RD RESPONDENT IN EXT.P3 APPEAL.

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