THE KAZHAKUTTOM SERVICE CO-OPERATIVE BANK LTD.NO.1457 vs. THE INCOME TAX OFFICER

WP(C)/4519/2020HC KeralaKLHC01012365202018 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 an opportunity of hearing to the petitioner. 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 of 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 is that a statutory appeal should be disposed of expeditiously, and interim relief can be granted by directing the appellate authority to decide the appeal without insisting on pre-deposit requirements, subject to the final outcome.

What were the facts?

The petitioner, The Kazhakkuttom Service Co-operative Bank Ltd. No. 1457, filed a writ petition before the High Court of Kerala seeking a direction for the disposal of an appeal (Ext.P3) filed before the Commissioner of Income Tax (Appeals). This appeal was against an assessment order (Ext.P1) passed by the Income Tax Officer, Ward 2(1). The petitioner sought a prompt decision on their appeal. The assessment year(s) and the amount in dispute are not specified in the judgment. 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. Assessee's Contention: The petitioner sought a direction for the disposal of their appeal before the second respondent (CIT(A)). Revenue's Contention: The judgment records no specific contention from the revenue regarding the disposal of the appeal. However, the court's direction implies that the revenue would be bound by the outcome of the appeal and the interim directions.

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 TUESDAY, THE 18TH DAY OF FEBRUARY 2020 / 29TH MAGHA, 1941 WP(C).No.4519 OF 2020(L) PETITIONER/S: THE KAZHAKUTTOM SERVICE CO-OPERATIVE BANK LTD.NO.1457 REPRESENTED BY ITS SECRETARY, KAZHAKUTTOM P. O., THIRUVANANTHAPURAM DISTRICT - 695 582. BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 2(1), OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, KAWDIAR P. O., THIRUVANANTHAPURAM, PIN - 695 003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, PIN - 695 003. OTHER PRESENT: CHRISTOPHER ABRAHAM,SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.4519 OF 2020(L) 2 JUDGMENT Dated this the 18th day of February 2020 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. SD/- AMIT RAWAL shg JUDGE WP(C).No.4519 OF 2020(L) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 20.12.2019. EXHIBIT P2 A TRUE COPY OF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 20.12.2019. EXHIBIT P3 A TRUE COPY OF THE ONLINE APPEAL DATED 31.12.2019 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 2.1.2020. EXHIBIT P5 AOF THE NOTICE NO.ITBA/COM/F/17/2019-20/1024497318(1) DATED 31.1.2020 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P6 AOF THE JUDGMENT DATED 19.7.2019 IN W.A.NO.1639 OF 2019. EXHIBIT P7 AOF THE JUDGMENT DATED 25.11.2019 IN W.P.(C) NO.31787 OF 2019.

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