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

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WP(C)/4760/2020HC KeralaKLHC01013033202019 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) in accordance with the law. This decision is to be made after providing the petitioner with an opportunity of hearing. The disposal is to be completed within three months from the date of receipt of a copy of the judgment. Crucially, the Court directed that the payment of 20% of the tax demanded should not be insisted upon, referencing a circular from 2017. Furthermore, recovery proceedings initiated pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. No issue was expressly left undecided.

What were the facts?

The petitioner, Thalazham Service Co-operative Bank Ltd., filed an appeal (Ext.P3) before the Commissioner of Income Tax (Appeals) against an assessment order (Ext.P2). The petitioner approached the High Court of Kerala seeking a direction for the disposal of this pending appeal. The assessment order was passed by the Income Tax Officer, Ward No. 2, Kottayam, and the appeal was filed before the Commissioner of Income Tax (Appeals), Kottayam. The Central Board of Direct Taxes was also arrayed as a respondent. The specific assessment year(s) and the amount in dispute are not recorded in the judgment.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the pending appeal filed by the petitioner? Assessee's Contention: The petitioner sought a direction from the High Court for the expeditious disposal of its appeal pending before the Commissioner of Income Tax (Appeals). The petitioner also sought a direction to dispose of the appeal without insisting on the payment of 20% of the tax demanded, as per a circular of 2017. Revenue's Contention: The judgment records that the matter was heard by the learned counsel on both sides, implying the revenue was represented. However, specific arguments or contentions raised by the revenue are not detailed in the judgment.

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.4760 OF 2020(T) PETITIONER/S: THALAYAZHAM SERVICE CO-OPERATIVE BANK LTD.NO.509, THALAYAZHAM POST,VAIKOM,KOTTAYAM-686607 REPRESENTED BY ITS SECRETARY JOSE.K.O. 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 NO2,INCOME TAX OFFICE, PUBLIC LIBRARY BUILDING,SASTRI ROAD,KOTTAYAM-686608. 3 COMMISSIONER OF INCOME TAX(APPEALS), INCOME TAX OFFICE,SASTRI ROAD, KOTTAYAM-686608. 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.4760 OF 2020(T) 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.4760 OF 2020(T) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE RETURN OF INCOME DATED 31.01.2018 FOR THE ASSESSMENT YEAR 2017- 18 IN PAN: AAEAT 3381L WITH ACKNOWLEDGEMENT NO.380709441310118 EXHIBIT P2OF THE ASSESSMENT ORDER NO.ITBA/AST/S/143(3)/2019- 20/1023528850(1) DATED 31.12.2019 ISSUED FOR THE YEAR 2017-18 BY THE 2ND RESPONDENT EXHIBIT P3OF THE APPEAL DATED 31.01.2020 FILED BEFORE THE 3RD RESPONDENT FOR THE YEAR 2017-18 EXHIBIT P4OF THE DEMAND NOTICE NO.ITBA/AST/S/156/2019-20/1023528992(1)IN PAN:AAEAT3381L DATED 31.12.2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT EXHIBIT P5OF THE STAY APPLICATION FILED ON 13.02.2020 BEFORE THE 3RD RESPONDENT IN EXT P3 APPEAL.

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