CHORODE SERVICE CO OPERATIVE BANK LTD. LL 139, vs. THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE,

WP(C)/3814/2020HC KeralaKLHC01010629202011 February 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition with a direction to the third respondent (Commissioner of Income Tax (Appeals)) to decide the appeal (Ext.P3) in accordance with law. This decision is to be made after affording an opportunity of hearing to the petitioner. The Court specified that the disposal should be within a period of three months from the date of receipt of a copy of the judgment. Crucially, the Court directed that the appeal should be decided without insisting 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 issue was expressly left undecided.

What were the facts?

The petitioner, Chorode Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction for the disposal of its appeal (Ext.P3) pending before the Commissioner of Income Tax (Appeals) (third respondent). The appeal was filed against an assessment order (Ext.P2). The petitioner sought a direction for the timely disposal of this appeal. The respondents included the Central Board of Direct Taxes, the Income Tax Officer, and the Commissioner of Income Tax (Appeals). The assessment year(s) are not explicitly stated in the provided text.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of the pending appeal within a specified period? (Question of procedure/administrative direction) Assessee's Contention: The petitioner seeks a direction for the expeditious disposal of its appeal. The petitioner relies on a circular of 2017 which allows for disposal without insisting on payment of 20% of the tax demanded. Revenue's Contention: The judgment records that the learned counsel for both sides were heard, implying the revenue had an opportunity to present its arguments. However, the specific contentions of the revenue are not detailed in the provided text.

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.3814 OF 2020(B) PETITIONER/S: CHORODE SERVICE CO OPERATIVE BANK LTD. LL 139, CHORODE, VADAKARA, KOZHIKODE - 673 106, REPRESENTED BY ITS SECRETARY VASU K. 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 BLOCK, NEW DELHI - 110 001, REPRESENTED BY ITS CHAIRMAN. 2 INCOME TAX OFFICER, WARD 2(2), AAYAKKAR BHAVAN, INCOME TAX OFFICE, MANANCHIRA, KOZHIKODE - 673 001. 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.3814 OF 2020(B) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal preferred before the third 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 third 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.3814 OF 2020(B) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE RETURN IN INCOME DATED 30/10/2017 FOR THE ASSESSMENT YEAR 2017-18 IN PAN AAAAT7826N. EXHIBIT P2OF THE ASSESSMENT ORDER NO.AAAAT7826N DATED 17/12/2019 ISSUED FOR THE YEAR 2017-18 BY THE 2ND RESPONDENT. EXHIBIT P3OF THE APPEAL DATED 07/01/2020 FILED BEFORE THE 3RD RESPONDENT FOR THE YEAR 2017-18. EXHIBIT P4OF THE DEMAND NOTICE NO. PAN AAAAT7826N/2017-18 DATED 17/12/2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P5OF THE STAY APPLICATION FILED ON 04/02/2020 BEFORE THE 3RD RESPONDENT IN EXT.P3 APPEAL.

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