KERALAM SERVICE CO-OPERATIVE BANK LTD. vs. INCOME TAX OFFICER

WP(C)/4603/2020HC KeralaKLHC01012448202018 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) (second respondent) to decide the appeals (Exts.P3 and P7) within 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 affording an opportunity of hearing to the petitioner. Crucially, the Court ordered that the appeals should be decided without insisting on the payment of 20% of the tax demanded, as per a circular of 2017. Until the appeals are decided, recovery proceedings pursuant to the assessment orders are to be kept in abeyance. The principle established is that pending appeals should be disposed of expeditiously, and recovery proceedings can be stayed pending such disposal, with specific conditions regarding pre-deposit being relaxed based on circulars.

What were the facts?

The petitioner, Keralam Service Co-operative Bank Ltd., filed appeals (Exts.P3 and P7) before the Commissioner of Income Tax (Appeals) (second respondent) challenging assessment orders (Exts.P1 and P5). The petitioner approached the High Court of Kerala seeking a direction for the disposal of these pending appeals. The Income Tax Officer (first respondent) is the other party. The assessment years are not specified.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of the pending appeals filed by the petitioner. Assessee's Contention: The petitioner seeks a direction for the disposal of their appeals, implying a desire for a timely resolution. The petitioner relies on a circular of 2017 regarding the payment of 20% of the tax demanded. Revenue's Contention: The judgment records that the learned counsel for both sides were heard, but specific arguments from the revenue are not detailed. However, the revenue's stance would implicitly be in relation to the disposal of the appeals and any conditions attached.

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.4603 OF 2020(A) PETITIONER: KERALAM SERVICE CO-OPERATIVE BANK LTD. NO. 600 THANISSERY, P.O. KARALAM THRISSUR 680 701, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SMT.SWATHY S. RESPONDENTS: 1 INCOME TAX OFFICER WARD 2 (2), AYANKAR BHAVAN, SHAKTHANTHAMPURAN NAGAR, THRISSUR 680 001. 2 COMMISSIONER OF INCOME TAX (APPEALS), OFFICE OF THE COMMISSIONER OF INCOME TAX, THRISSUR. 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.4603 OF 2020(A) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Exts.P3 and P7 appeals preferred before the second respondent/Commissioner of Income Tax (Appeals) against the assessment orders Exts.P1 and P5. 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 Exts.P3 and P7 appeals 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 orders shall be kept in abeyance. AMIT RAWAL, JUDGE Skk//22022020

WP(C).No.4603 OF 2020(A) 3 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 27.11.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 AOF THE DEMAND NOTICE U/S 156 DATED 27.1.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 AOF THE APPEAL FOR AY 2017- 18 BEFORE THE 2ND RESPONDENT DATED 03.01.2020. EXHIBIT P4 AOF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 14.01.2020 FOR 20% OF TAX. EXHIBIT P5 AOF THE ASSESSMENT ORDER FOR AY 2012-13 DATED 27.11.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P6 AOF THE DEMAND NOTICE U/S 156 DATED 27.11.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P7 AOF THE APPEAL FOR AY 2012- 13 BEFORE THE 2ND RESPONDENT DATED 01.01.2020. EXHIBIT P8 AOF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 16.01.2020 FOR 20% OF TAX. RESPONDENT'S EXHIBITS: NIL

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