VILLIAPPALLY PANCHAYATH SERVICE CO-OPERATIVE BANK LTD. NO. D-2342, vs. THE CENTRAL BOARD OF DIRECT TAXES,

WP(C)/4430/2020HC KeralaKLHC01012146202017 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 within a period of three months from the date of receipt of a copy of the judgment. The court also specified that the decision should be taken in accordance with law, after affording an opportunity of hearing to the petitioner. Crucially, the court ordered 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 court did not decide on the merits of the appeal itself, but rather on the procedural aspect of its disposal.

What were the facts?

The petitioner, Villiappally Panchayath Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction to the Commissioner of Income Tax (Appeals) to dispose of its appeal. The appeal was filed against an assessment order passed by the Income Tax Officer. The petitioner sought a speedy resolution of their appeal, which was pending before the third respondent. The assessment year(s) are not specified. The procedural history involves the filing of an appeal against an assessment order.

What were the issues?

1. Whether the High Court should issue a writ of mandamus directing the Commissioner of Income Tax (Appeals) to dispose of the pending appeal filed by the petitioner? The petitioner argued that their appeal before the Commissioner of Income Tax (Appeals) was pending and they sought a direction for its expeditious disposal. The revenue did not record any specific arguments in this regard, but the court's order implies their presence and participation in the proceedings.

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.4430 OF 2020(C) PETITIONER/S: VILLIAPPALLY PANCHAYATH SERVICE CO-OPERATIVE BANK LTD. NO. D-2342, HEAD OFFICE, VILLIAPPALLY, VATAKARA, KOZHIKODE - 673 542, REPRESENTED BY ITS SECRETARY SHEELA P. BY ADVS. DR.K.P.PRADEEP SMT.T.THASMI RESPONDENT/S: 1 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. 2 INCOME TAX OFFICER, WARD 2(2),AAYAKKAR BHAVAN, INCOME TAX OFFICE, MANANCHIRA, KOZHIKODE - 673 001. 3 COMMISSIONER OF INCOME TAX (APPEALS), KOZHIKODE, AAYAKAR BHAVAN, INCOME TAX OFFICE, MANANCHIRA, KOZHIKODE - 673 001. OTHER PRESENT: SRI CHRISTOPHER ABRAHAM 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.4430 OF 2020(C) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal preferred before the third respondent/Commissioner of Income Tax (Appeals) against the assessment order Ext.P2. 2. Having heard the learned counsel on both sides, the writ petition is disposed of with a direction to the third 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.4430 OF 2020(C) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE RETURN OF INCOME DATED 26/10/2017 FOR THE ASSESSMENT YEAR 2017- 18 IN PAN AAFFV1831K. EXHIBIT P2OF THE ASSESSMENT ORDER AAFFV1831K NO DATED 17/12/2019 ISSUED FOR THE YEAR 2017-18 BY THE 2ND RESPONDENT. EXHIBIT P3OF THE APPEAL DATED 10/01/2020 FILED BEFORE THE 3RD RESPONDENT FOR THE YEAR 2017-18. EXHIBIT P4OF THE DEMAND NOTICE NO.PAN AAFFV1831K/2017-18 DATED 17/12/2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P5OF THE STAY APPLICATION FILED ON 07/02/2020 BEFORE THE 3RD RESPONDENT IN EXT.P3 APPEAL.

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