THE QUILON DISTRICT P AND T EMPLOYEES CO-OPERATIVE SOCIETY LTD NO.Q 880., vs. INCOME TAX OFFICER,

WP(C)/4775/2020HC KeralaKLHC01013090202019 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 law. This decision is to be made after providing the petitioner an opportunity of hearing, within three months from the date of receipt of a copy of the judgment. 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 principle established is that pending appeals should be disposed of expeditiously, and interim relief regarding recovery can be granted in such circumstances, considering relevant circulars.

What were the facts?

The petitioner, The Quilon District P and T Employees Co-operative Society Ltd, filed an appeal (Ext.P3) before the Commissioner of Income Tax (Appeals) (second respondent) challenging an assessment order (Ext.P1) passed by the Income Tax Officer (first respondent). The petitioner approached the High Court of Kerala seeking a direction for the disposal of this pending appeal. The assessment year(s) are not specified. The amount in dispute is not stated. The procedural history involves the filing of the appeal before the CIT(A) and the subsequent writ petition seeking its expeditious 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? (Question of procedure and administrative direction). The petitioner contended that their appeal before the second respondent has not been disposed of and sought a direction for its expeditious disposal. The revenue did not record any specific arguments against the direction for disposal, but was represented by counsel.

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.4775 OF 2020(V) PETITIONER/S: THE QUILON DISTRICT P AND T EMPLOYEES CO-OPERATIVE SOCIETY LTD NO.Q 880., KOLLAM.P.O., PIN-691001, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SMT.SWATHY S. RESPONDENT/S: 1 INCOME TAX OFFICER, WARD-4, AYANKAR BHAVAN, NEAR KARBALA JUNCTION, KOLLAM, KOLLAM-691001. 2 COMMISSIONER OF INCOME TAX (APPEALS) OFFICE OF THE COMMISSIONER OF INCOME TAX, TRIVANDRUM- 695001. R1-2 BY SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT 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.4775 OF 2020(V) 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.4775 OF 2020(V) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 22.11.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 AOF THE DEMAND NOTICE U/S.156 DATED 22.11.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 AOF THE APPEAL FOR AY 2017-18 BEFORE THE 2ND RESPONDENT DATED 28.12.2019. EXHIBIT P4 AOF THE NOTICE OF PENALTY PROCEEDINGS ISSUED BY THE 1ST RESPONDENT DATED 30.1.2020. EXHIBIT P5 AOF THE JUDGMENT IN WPC.NO.20467/2019 DATED 27.9.2019.

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