THE AROOR CENTRAL SERVICE CO-OPERATIVE BANK LIMITED vs. THE INCOME TAX OFFICER,

WP(C)/4583/2020HC KeralaKLHC01012296202018 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) in accordance with the law. The Commissioner was instructed to provide an opportunity of hearing to the petitioner. The decision was to be taken within three months from the date of receipt of a copy of the judgment. Crucially, the Court directed that the Commissioner 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 were to be kept in abeyance until a decision was taken on the appeal. No specific issue was left undecided; the court's action was procedural.

What were the facts?

The petitioner, The Aroor Central Service Co-operative Bank Limited, 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). The appeal was filed against an assessment order (Ext.P1). The petitioner sought a directive for the Commissioner to decide the appeal expeditiously. The respondents were the Income Tax Officer and the Commissioner of Income Tax (Appeals). The case was heard on February 18, 2020.

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 its appeal before the Commissioner of Income Tax (Appeals). The petitioner relied on a circular of 2017, implying it should not be insisted upon to pay 20% of the tax demanded before the appeal is heard. Revenue's Contention: The judgment records that the learned counsel for both sides were heard, but specific arguments for the revenue are not detailed in the provided text.

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.4583 OF 2020(W) PETITIONER: THE AROOR CENTRAL SERVICE CO-OPERATIVE BANK LIMITED NO.617, AROOR, CHERTHALA, ALAPPUZHA DISTRICT, PIN-688534, REPRESENTED BY ITS SECRETARY, MEERA U PILLAI BY ADV. SRI.R.MURALEEDHARAN RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD-5, ARATTUKULANGARA COMPLEX, A.N.PURAM, ALAPPUZHA, PIN-688011 2 THE COMMISSIONER OF INCOME TAX(APPEALS) SASTRY ROAD, KOTTAYAM, PN-682015 BY SRI JOSE JOSEPH, STANDING COUNSEL 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.4583 OF 2020(W) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P2 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.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, JUDGE Skk//20022020

WP(C).No.4583 OF 2020(W) 3 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER PASSED BY THE 1ST RESPONDENT UNDER SEC.144 OF THE ACT, DATED 16.12.2019 EXHIBIT P2OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT, DATED 08.01.2020 EXHIBIT P3OF THE INTERLOCUTORY APPLICATION FOR STAY FILED BEFORE THE 2ND RESPONDENT DATED 14.02.2020 EXHIBIT P4OF THE NOTICE ISSUED BY THE 1ST RESPONDENT PROPOSING COERCIVE STEPS, DATED 07.02.2020 RESPONDENTS' EXHIBITS: NIL

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