CHIRAKKAL SERVICE CO-OPERATIVE BANK LTD vs. THE CENTRAL BOARD OF DIRECT TAXES

WP(C)/3736/2020HC KeralaKLHC01010529202011 February 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the Commissioner of Income Tax (Appeals) to decide the pending appeals (Exts.P3, P3(a), and P3(b)) and interim applications (Exts.P5, P5(a), and P5(b)) within a period of three months from the date of receipt of a copy of the judgment. The decision is to be taken in accordance with the law, after providing an opportunity of hearing to the petitioner. Crucially, the Court directed that the disposal should be done without insisting on the payment of 20% of the tax demanded, as per a circular of 2017. Furthermore, recovery proceedings pursuant to the assessment orders were ordered to be kept in abeyance until a decision is taken on the appeals. The specific assessment years and the exact tax demand were not recorded.

What were the facts?

The petitioner, Chirakkal Service Co-operative Bank 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 and applications were against assessment orders passed by the Income Tax Officer. The petitioner sought a directive for the Commissioner of Income Tax (Appeals) to decide the pending matters. The assessment orders were for unspecified assessment years, and the amount in dispute was not explicitly stated in the judgment. The procedural history involves the filing of appeals and interim applications before the appellate authority.

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? (Question of procedure/direction). Assessee's Contention: The petitioner sought a direction from the High Court to the Commissioner of Income Tax (Appeals) to expedite the disposal of their pending appeals and interim applications. The petitioner relied on a circular of 2017, implying it might relate to conditions for appeal or stay of demand. Revenue's Contention: The judgment records that the learned counsel for both sides were heard. However, specific contentions of the revenue regarding the disposal of appeals or the applicability of the circular are not detailed in the judgment. The revenue's position on the demand of 20% of the tax is implicitly challenged by the petitioner's reliance on the circular.

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 TUESDAY, THE 11TH DAY OF FEBRUARY 2020 / 22ND MAGHA, 1941 WP(C).No.3736 OF 2020(N) PETITIONER/S: CHIRAKKAL SERVICE CO-OPERATIVE BANK LTD P.O. CHIRACKAL, KANNUR - KANNUR - 670 011 REPRESENTED BY ITS SECRETARY CHANDRAN P. BY ADV. DR.K.P.PRADEEP RESPONDENT/S: 1 THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE, MINISTRY OF FINANCE GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI - 110 001 REPRESENTED BY ITS CHAIRMAN 2 INCOME TAX OFFICER WARD 1, KANNUR RANGE AAYAKKAR BHAVAN, INCOME TAX OFFICE, KANNOTHUMCHARL, CHOVVA, KANNUR 670 006 3 COMMISSIONER OF INCOME TAX (APPEALS) KOZHIKODE, AAYAKAR BHAVAN, INCOME TAX OFFICE, MANANCHIRA, KOZHIKODE - 673 001 OTHER PRESENT: SC CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.3736 OF 2020(N) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Exts.P3, P3(a) and P3(b) appeals and Exts.P5, P5(a) and P5(b) interim applications preferred before the third respondent/Commissioner of Income Tax (Appeals) against the assessment orders Exts.P2, P2(a) and P2(b).

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, P3(a) and P3(b) 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.3736 OF 2020(N) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE RETURN OF INCOME DATED 09-07-2015 FOR THE ASSESSMENT YEAR 2014- 15 IN PAN AAAAC0458M EXHIBIT P1(A)OF THE RETURN OF INCOME DATED 12-01-2016 FOR THE ASSESSMENT YEAR 2015- 16 IN PAN AAAAC0458M EXHIBIT P1(B)OF THE RETURN OF INCOME DATED 01-11-2017 FOR THE ASSESSMENT YEAR 2017- 18 IN PAN AAAAC0458M EXHIBIT P2OF THE ASSESSMENT ORDER NO. AAAAC0458M/2014-15 DATED 19-12-2016 ISSUED FOR THE YEAR 2014-15 BY THE 2ND RESPONDENT EXHIBIT P2(A)OF THE ASSESSMENT ORDER NO. AAAAC0458M/2015-16 DATED 19-12-2017 ISSUED FOR THE YEAR 2015-16 BY THE 2ND RESPONDENT EXHIBIT P2(B)OF THE ASSESSMENT ORDER NO. AAAAC0458M/2017-18 DATED 13-12-2019 ISSUED FOR THE YEAR 2017-18 BY THE 2ND RESPONDENT EXHIBIT P3OF THE APPEAL DATED 27-1-2017 FILED BEFORE THE 3RD RESPONDENT FOR THE YEAR 2014-15 EXHIBIT P3(A)OF THE APPEAL DATED 22-1-2018 FILED BEFORE THE 3RD RESPONDENT FOR THE YEAR 2015-16 EXHIBIT P3(B)OF THE APPEAL DATED 18-1-2020 FILED BEFORE THE 3RD RESPONDENT FOR THE YEAR 2017-18 EXHIBIT P4OF THE DEMAND NOTICE NO. PAN AAAAC0458M/2014-15 DATED 19-12-2016 FOR THE YEAR 2014-15 ISSUED BY THE 2NR RESPONDENT EXHIBIT P4(A)OF THE DEMAND NOTICE NO. PAN AAAAC0458M/2015-16 DATED 19-12-2017 FOR THE YEAR 2015-16 ISSUED BY THE 2NR RESPONDENT

WP(C).No.3736 OF 2020(N) 4 EXHIBIT P4(B)OF THE DEMAND NOTICE NO. PAN AAAAC0458M/2017-18 DATED 13-12-2019 FOR THE YEAR 2017-18 ISSUED BY THE 2NR RESPONDENT EXHIBIT P5OF THE STAY APPLICATION FILED ON 07-02-2020 BEFORE THE 3RD RESPONDENT IN EXT P3 APPEAL EXHIBIT P5(A)OF THE STAY APPLICATION FILED ON 07-02-2020 BEFORE THE 3RD RESPONDENT IN EXT P3(A) APPEAL EXHIBIT P5(B)OF THE STAY APPLICATION FILED ON 07-02-2020 BEFORE THE 3RD RESPONDENT IN EXT P3(B) APPEAL

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