ERIYAD SERVICE CO-OPERATIVE SOCIETY LTD.NO.98 vs. INCOME TAX OFFICER

WP(C)/4095/2020HC KeralaKLHC01011440202013 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 the appeal (Ext.P3) in accordance with law. This decision is to 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 directed that the disposal should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. No specific issue was left undecided.

What were the facts?

The petitioner, Eriyad Service Co-operative Society Ltd. No. 98, filed a writ petition before the High Court of Kerala seeking a direction to the Commissioner of Income Tax (Appeals) to dispose of their appeal. The appeal was filed against an assessment order passed by the Income Tax Officer. The petitioner sought a direction for the expeditious disposal of their appeal, which was pending before the second respondent. The assessment order was marked as Ext.P1 and the appeal as Ext.P3.

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 argued for a direction to the second respondent to dispose of their appeal. The revenue did not record any specific arguments in the judgment.

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 THURSDAY, THE 13TH DAY OF FEBRUARY 2020 / 24TH MAGHA, 1941 WP(C).No.4095 OF 2020(J) PETITIONER/S: ERIYAD SERVICE CO-OPERATIVE SOCIETY LTD.NO.98 ERIYAD P.O. ERIYAD THRISSUR 680 666, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SMT.SWATHY S. RESPONDENT/S: 1 INCOME TAX OFFICER WARD 2 (1) AYANKAR BHAVAN, SHAKTHANTHAMPURAN NAGAR, THRISSUR 680 001. 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.4095 OF 2020(J) 2

JUDGMENT 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.4095 OF 2020(J) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 17.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 AOF THE DEMAND NOTICE U/S 156 DATED 17.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 AOF THE APPEAL FOR AY 2017-18 BEFORE THE 2ND RESPONDENT DATED 14.01.2020. EXHIBIT P4 AOF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 30.01.2020 FOR 20% OF TAX.

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