PONVILA SERVICE CO-OPERATIVE BANK LTD.NO.985, vs. INCOME TAX OFFICER,

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WP(C)/4154/2020HC KeralaKLHC01011241202013 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 of receiving a copy of the judgment. This decision was to be made in accordance with the law and after providing the petitioner an opportunity of hearing. Crucially, the Commissioner was directed not to insist on the payment of 20% of the tax demanded, as per a circular from 2017. Until a decision on the appeal is reached, recovery proceedings initiated under the assessment order are to be kept in abeyance. The court did not decide the merits of the appeal or the stay petition itself, but rather directed the appellate authority to proceed with the adjudication.

What were the facts?

The petitioner, Ponvila Service Co-operative Bank Ltd., filed an appeal before the Commissioner of Income Tax (Appeals) against an assessment order. The petitioner also filed a stay petition pending the appeal. The present writ petition was filed before the High Court of Kerala seeking a direction to consider the stay petition. The assessment year(s) and the specific assessment order are not explicitly stated, nor is the amount in dispute. The procedural history involves the filing of an appeal and a stay petition, followed by the writ petition seeking a direction for their consideration.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to consider the stay petition pending the appeal filed by the assessee? (Question of procedure/writ jurisdiction). Assessee's Contention: The assessee sought a direction for the consideration of its stay petition (Ext.P4) pending its appeal (Ext.P3) before the Commissioner of Income Tax (Appeals) against the assessment order (Ext.P2). Revenue's Contention: The judgment records no specific contention from the revenue regarding the consideration of the stay petition. The court heard both sides.

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.4154 OF 2020(T) PETITIONER/S: PONVILA SERVICE CO-OPERATIVE BANK LTD.NO.985, REPRESENTED BY ITS PRESIDENT, ARIYA P.O., (VIA) PARASSALA, THIRUVANANTHAPURAM. BY ADVS. SRI.P.N.MOHANAN SRI.C.P.SABARI RESPONDENT/S: 1 INCOME TAX OFFICER, WARD 2(2), AAYAKAR BHAVAN, INCOME TAX, KOWDIAR, TRIVANDRUM-695003. 2 COMMISSIONER OF INCOME TAX (APPEALS), THIRUVANANTHAPURAM, AAYAKAR BHAVAN, INCOME TAX, KOWDIAR, TRIVANDRUM-695003. OTHER PRESENT: SRI CHRISTOPHER ABRAHAM 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.4154 OF 2020(T) 2

JUDGMENT Petitioner has approached this Court seeking a direction to consider Ext.P4 stay petition pending the Appeal, Ext.P3 preferred before the second 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 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.4154 OF 2020(T) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE RETURN FILED BY THE PETITIONER FOR THE ASSESSMENT YEAR 2017- 2018. EXHIBIT P2 AOF THE ASSESSMENT ORDER ALONG WITH DEMAND NOTICE DATED 26.12.2019 OF THE FIRST RESPONDENT. EXHIBIT P3 AOF THE APPEAL DATED 18.01.2020 FILED BEFORE SECOND RESPONDENT. EXHIBIT P4 AOF THE STAY PETITION DATED 20.1.2020 WHICH IS RECEIVED IN THE OFFICE OF THE SECOND RESPONDENT ON 28.01.2020. EXHIBIT P5 AOF THE PETITION DATED 20.1.2020 FILED BEFORE THE FIRST RESPONDENT. EXHIBIT P6 AOF THE DEMAND NOTICE DATED 06.02.2020 ISSUED BY THE FIRST RESPONDENT.

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