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

WP(C)/4103/2020HC KeralaKLHC01011388202013 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 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 providing the petitioner an opportunity of hearing. Crucially, the Court ordered that the appeal should be decided without insisting on the payment of 20% of the tax demanded, as per a circular issued in 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 pending appeals expeditiously and that interim directions regarding tax payment and recovery can be granted pending appeal disposal.

What were the facts?

The petitioner, Kottayi Service Co-operative Bank Ltd, filed an appeal (Ext.P3) before the Commissioner of Income Tax (Appeals) (second respondent) challenging an assessment order (Ext.P1) passed by the Income Tax Officer (first respondent). The petitioner approached the High Court of Kerala seeking a direction for the disposal of this pending appeal. The assessment year(s) are not specified. The amount in dispute is not stated. The procedural history involves the filing of the appeal before the CIT(A) and the subsequent writ petition seeking its expeditious disposal.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the pending appeal filed by the petitioner? Assessee's Contention: The petitioner seeks a direction for the disposal of their appeal before the Commissioner of Income Tax (Appeals). No specific legal provisions or precedents are mentioned in the judgment regarding this contention. Revenue's Contention: The judgment records that the learned counsel for both sides were heard, implying the revenue was represented. However, the specific contentions of the revenue are not detailed in the judgment.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL THURSDAY, THE 13TH DAY OF FEBRUARY 2020 / 24TH MAGHA, 1941 WP(C).No.4103 OF 2020(K) PETITIONER/S: KOTTAYI SERVICE CO-OPERATIVE BANK LTD KOTTAYI P.O., PALAKKAD-678572, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SMT.SWATHY S. RESPONDENT/S: 1 INCOME TAX OFFICER WARD-5, AAYAKAR BHAVAN, CHURCH ROAD, PALAKKAD-678014. 2 COMMISSIONER OF INCOME TAX (APPEALS), OFFICE OF THE COMMISSIONER OF INCOME TAX, THRISSUR. OTHER PRESENT: SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.4103 OF 2020(K) 2 JUDGMENT Dated this the 13th day of February 2020 Petitioner has approached this Court seeking a direction to dispose of Ext.P3 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.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.4103 OF 2020(K) 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 18.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 A TRUE COPY OF THE DEMAND NOTICE U/S 156 DATED 18.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 A TRUE COPY OF THE APPEAL FOR AY 2017-18 BEFORE THE 2ND RESPONDENT DATED 09.01.2020. EXHIBIT P4 A TRUE COPY OF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 31.01.2020 FOR 20% OF TAX.

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