PALLIPPURAM SERVICE CO-OPERATIVE BANK vs. THE INCOME TAX OFFICER

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WP(C)/4490/2020HC KeralaKLHC01012348202017 February 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the second respondent, the Commissioner of Income Tax (Appeals), to decide Ext.P2 appeal in accordance with law. This decision must be made after providing the petitioner 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 ordered that the disposal should not insist 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 decidendi is that appellate authorities should dispose of appeals expeditiously and that recovery can be stayed pending appeal disposal, especially when a specific circular allows for waiver of pre-deposit under certain conditions.

What were the facts?

The petitioner, Pallippuram Service Co-operative Bank, filed a writ petition before the High Court of Kerala seeking a direction for the disposal of its appeal (Ext.P2) pending before the Commissioner of Income Tax (Appeals) - 2, Kochi. The appeal was filed against an assessment order. The petitioner was represented by its Secretary, Smt. Asadevi MA. The respondents were the Income Tax Officer, Non Corp. Ward 2(5), the Commissioner of Income Tax (Appeals) - 2, and the Central Board of Direct Taxes. The writ petition was filed on February 17, 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? The petitioner sought a direction for the expeditious disposal of its appeal against the assessment order. The revenue did not record any specific arguments against this prayer in the judgment. The issue revolves around the procedural aspect of appeal disposal and the court's power to direct such disposal. The court's intervention is sought to ensure the appellate authority takes a decision in accordance with law.

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.4490 OF 2020(I) PETITIONER/S: PALLIPPURAM SERVICE CO-OPERATIVE BANK NO.760, PALLIPURAM, CHERAI, RNAKULAM - 683514, REPRESENTED BY ITS SECRETARY, SMT. ASADEVI MA. BY ADVS. SRI.AJI V.DEV SRI.ALAN PRIYADARSHI DEV RESPONDENT/S: 1 THE INCOME TAX OFFICER NON CORP. WARD 2(5), INCOME TAX OFFICE, L. G. TOWERS, THOPPUMPADY, ERNAKULAM - 682 005. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) - 2 KOCHI - 682 036. 3 THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI - 110 001, REPRESENTED BY ITS CHAIRMAN. OTHER PRESENT: SRI JOSE JOSEPH SC 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.4490 OF 2020(I) 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.

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 sab JUDGE

WP(C).No.4490 OF 2020(I) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE PENALTY ORDER THUS PASSED BY THE 1ST RESPONDENT FOR THE YEAR 2016-17 DATED 27.6.2019. EXHIBIT P2OF THE STATUTORY APPEAL SO FILED BY THE PETITIONER AGAINST EXT.P1 DATED 1.9.2019. EXHIBIT P3OF THE STAY PETITION FILED ALONG WITH THE EXT.P2 APPEAL DATED 12.2.2020. EXHIBIT P4 AOF THE INTIMATION FROM THE 1ST RESPONDENT DATED 11.2.2020 DIRECTING THE PETITIONER TO REMIT 20% OF THE AMOUNT DEMANDED FOR CONSIDERATION OF EXT.P3 STAY PETITION IN THIS INSTANT CASE. EXHIBIT P5 AOF THE JUDGMENT OF THIS HON'BLE COURT DATED 1.7.2019 IN W.A.NO.1536/2019.

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