POLPPULLY SERVICE CO OPERATIVE BANK LIMITED NO. F. 1198, vs. THE COMMISSIONER OF INCOME TAX (APPEALS),

WP(C)/4137/2020HC KeralaKLHC01011474202013 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.P2) within a period of three months from the date of receipt of a copy of the judgment. This decision was to be taken in accordance with law, after affording an opportunity of hearing to the petitioner. Crucially, the Court directed that the disposal should not insist on the payment of 20% of the tax demanded, as per a circular of 2017. Furthermore, the Court ordered that recovery proceedings pursuant to the assessment order shall be kept in abeyance until a decision is taken on the appeal. The principle established is that appellate authorities should dispose of pending appeals expeditiously, and interim relief regarding recovery can be granted pending such disposal, without prejudice to the requirement of pre-deposit where applicable, but subject to specific circulars.

What were the facts?

The petitioner, Polpully Service Co Operative Bank Limited, filed an appeal (Ext.P2) before the Commissioner of Income Tax (Appeals) against an assessment order (Ext.P1). The petitioner approached the High Court of Kerala seeking a direction for the disposal of this pending appeal. The assessment order was passed by the Income Tax Officer, Ward 2, Palakkad. The appeal was filed against the Commissioner of Income Tax (Appeals). The specific assessment year(s) and the amount in dispute are not recorded in the judgment. The procedural history involves the filing of the appeal before the first respondent and the subsequent writ petition seeking its expeditious disposal.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of the pending appeal, and if so, within what timeframe and subject to what conditions? Assessee's Contention: The assessee, Polpully Service Co Operative Bank Limited, sought a direction from the High Court for the expeditious disposal of its appeal (Ext.P2) pending before the Commissioner of Income Tax (Appeals). The assessee implicitly argued for a timely resolution of its appellate proceedings. Revenue's Contention: The judgment records no specific argument from the revenue's side. However, the court's direction implies that the revenue would be bound by the outcome of the appeal and the interim directions issued.

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.4137 OF 2020(N) PETITIONER/S: POLPPULLY SERVICE CO OPERATIVE BANK LIMITED NO. F. 1198, KALLUKUTTIYAL, POLPPULLI, PALAKKAD, PIN-678552, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN, SHAKTAN NAGAR, THRISSUR, PIN-680001. 2 THE INCOME TAX OFFICER, WARD 2, AAYKAR BHAVAN, ENGLISH CHURCH ROAD, PALAKKAD, PIN-678014. 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.4137 OF 2020(N) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P2 appeal preferred before the first 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 first 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.4137 OF 2020(N) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 19.12.2019 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2017-18. EXHIBIT P2 COPY OF THE APPEAL DATED 04.01.2020 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2017-18. EXHIBIT P3 COPY OF THE ORDER PROCEEDING DATED 06.02.2020 ISSUED BY THE 2ND RESPONDENT.

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