NAVAIKULAM FARMERS WELFARE CO-OPERATIVE SOCIETY LTD NO. 1731 vs. THE CENTRAL BOARD OF DIRECT TAXES

WP(C)/3993/2020HC KeralaKLHC01010966202012 February 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala disposed of the writ petition with a direction to the third respondent, the Commissioner of Income Tax (Appeals), to decide the appeals (Exts.P3 and P3(a)) in accordance with the law. This decision is to be made after providing an opportunity of hearing to the petitioner, within a period of three months from the date of receipt of a copy of the judgment. Crucially, the court directed that the Commissioner should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, the court ordered that recovery proceedings pursuant to the assessment orders shall be kept in abeyance until such time as a decision is taken on the appeal. No issue was expressly left undecided.

What were the facts?

The petitioner, Navaikulam Farmers Welfare Co-operative Society Ltd, filed a writ petition before the High Court of Kerala seeking a direction for the disposal of appeals and interim applications filed before the Commissioner of Income Tax (Appeals). These appeals were against assessment orders passed by the Income Tax Officer. The petitioner sought a direction for the Commissioner of Income Tax (Appeals) to decide the appeals within a stipulated time and to keep recovery proceedings in abeyance until a decision was taken. The writ petition was filed on February 12, 2020.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the pending appeals and interim applications filed by the petitioner against the assessment orders. Assessee's Contention: The petitioner sought a direction for the expeditious disposal of their appeals and interim applications before the Commissioner of Income Tax (Appeals). They also requested that recovery proceedings be stayed until the appeals are decided. Revenue's Contention: The judgment does not record any specific contentions from the revenue's side. However, the court's direction implies that the revenue would be bound by the outcome of the appeals and the court's order regarding the stay of recovery.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL WEDNESDAY, THE 12TH DAY OF FEBRUARY 2020 / 23RD MAGHA, 1941 WP(C).No.3993 OF 2020(Y) PETITIONER/S: NAVAIKULAM FARMERS WELFARE CO-OPERATIVE SOCIETY LTD NO. 1731 NPI-835, KIZHAKKE NADA, NAVAIKULAM P.O., THIRUVANANTHAPURAM-695 603, REPRESENTED BY ITS SECRETARY JAYASREE B.S. 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 BOCK, NEW DELHI- 110 001, REPRESENTED BY ITS CHAIRMAN 2 INCOME TAX OFFICER, WARD 2 (5), AAYAKKAR BHAVAN, INCOME TAX KOWDIAR, THIRUVANANTHAPURAM-695 003 3 COMMISSIONER OF INCOME TAX (APPEALS), THIRUVANANTHAPURAM, AAYAKKAR BHAVAN, INCOME TAX KOWDIAR, THIRUVANANTHAPURAM-695 003 OTHER PRESENT: SC CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.3993 OF 2020(Y) 2 JUDGMENT Dated this the 12th day of February 2020 Petitioner has approached this Court seeking a direction to dispose of Exts.P3 and P3(a) appeals and Exts.P5 and P5(a) interim

applications

preferred

before

the third respondent/Commissioner of Income Tax (Appeals) against the assessment orders Exts.P2 and P2(a).

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 Exts.P3 and P3(a) appeals 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 orders shall be kept in abeyance. AMIT RAWAL sab JUDGE

WP(C).No.3993 OF 2020(Y) 3

WP(C).No.3993 OF 2020(Y) 4

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE RETURN OF INCOME DATED 30.04.2019 FOR THE ASSESSMENT YEAR 2012-13 IN PAN AADAN0420F EXHIBIT P1A TRUE COPY OF THE RETURN OF INCOME DATED 29.03.2018 FOR THE ASSESSMENT YEAR 2017-18 IN PAN AADAN0420F EXHIBIT P2 TRUE COPY OF THE ASSESSMENT ORDER NO. AADAN0420F/2012-13 DATED 24.12.2019 ISSUED FOR THE YEAR 2013-13 BY THE 2ND RESPONDENT EXHIBIT P2A TRUE COPY OF THE ASSESSMENT ORDER NO. AADAN0420F/2017-18 DATED 23.12.2019 ISSUED FOR THE YEAR 2017-18 BY THE 2ND RESPONDENT EXHIBIT P3 TRUE COPY OF THE APPEAL DATED 09.01.2020 FILED FOR THE YEAR 2013-13 BEFORE THE 3RD RESPONDENT EXHIBIT P3A TRUE COPY OF THE APPEAL DATED 08.01.2020 FILED FOR THE YEAR 2017-18 BEFORE THE 3RD RESPONDENT EXHIBIT P4 TRUE COPY OF THE DEMAND NOTICE NO.PAN AADAN0420F/2012-13 DATED 24.12.2019 ISSUED FOR THE YEAR 2012-13 BY THE 2ND RESPONDENT EXHIBIT P4A TRUE COPY OF THE DEMAND NOTICE NO.PAN AADAN0420F/2017-18 DATED 23.12.2019 ISSUED FOR THE YEAR 2017-18 BY THE 2ND RESPONDENT EXHIBIT P5 TRUE COPY OF THE STAY APPLICATION FILED ON 10.01.2020 BEFORE THE 3RD RESPONDENT IN EXT P3 APPEAL EXHIBIT P5A TRUE COPY OF THE STAY APPLICATION FILED ON 09.01.2020 BEFORE THE 3RD RESPONDENT IN EXT P3 (A) APPEAL

Recent GST High Court judgments

Search GST case law →