ANDOORKONAM SERVICE CO-OPERATIVE BANK LTD.NO.3127 vs. THE INCOME TAX OFFICER,

WP(C)/4433/2020HC KeralaKLHC01012046202017 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 was to be made in accordance with the law, after providing an opportunity of hearing to the petitioner. 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 pursuant to the assessment order were to be kept in abeyance until a decision was taken on the appeal. The principle established is that appellate authorities should dispose of appeals expeditiously, and interim relief can be granted while ensuring due process and adherence to circulars.

What were the facts?

The petitioner, Andoorkonam Service Co-operative Bank Ltd., represented by its Secretary-in-Charge, filed a writ petition before the High Court of Kerala. The petition sought a direction for the disposal of its appeal and stay petition filed before the Commissioner of Income Tax (Appeals). The appeal was against an assessment order passed by the Income Tax Officer. The petitioner sought to expedite the appellate process and requested that recovery proceedings be stayed until a decision was rendered on the appeal.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of the pending appeal and stay petition filed by the petitioner? (Question of procedure and administrative direction) Assessee's Contention: The petitioner bank sought a direction from the High Court to the Commissioner of Income Tax (Appeals) to expedite the disposal of its appeal and stay petition against the assessment order. The petitioner implicitly argued for a timely resolution of its tax dispute. Revenue's Contention: The judgment records that the learned counsel on both sides were heard, indicating the revenue was represented. However, no specific arguments or contentions from the revenue are recorded in the judgment regarding the disposal of the appeal or the stay petition.

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 MONDAY, THE 17TH DAY OF FEBRUARY 2020 / 28TH MAGHA, 1941 WP(C).No.4433 OF 2020(D) PETITIONER/S: ANDOORKONAM SERVICE CO-OPERATIVE BANK LTD.NO.3127 REPRESENTED BY ITS SECRETARY-IN-CHARGE, KEEZHAVOOR P.O., THIRUVANANTHAPURAM DISTRICT-695584. 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-695003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, PIN-695003. OTHER PRESENT: SRI CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.4433 OF 2020(D) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal and Ext.P4 stay petition 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.4433 OF 2020(D) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR THE YEAR 2017-18 DATED 19.12.2019. EXHIBIT P2 AOF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 19.12.2019. EXHIBIT P3 AOF 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 02.01.2020. EXHIBIT P5 AOF THE JUDGMENT DATED 19.07.2019 IN W.A.NO.1639 OF 2019. EXHIBIT P6 AOF THE JUDGMENT DATED 25.11.2019 IN WP(C)NO.31787 OF 2019.

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