AVANANKUZHI SERVICE CO-OPERATIVE BANK LTD NO 2387, vs. THE INCOME TAX OFFICER

WP(C)/3725/2020HC KeralaKLHC01010446202011 February 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court allowed the writ petition, directing the Commissioner of Income Tax (Appeals) to decide the appeal (Ext.P3) within three months from the date of receipt of a copy of the judgment. The court specified that the decision should be taken in accordance with the law and after affording an opportunity of hearing to the petitioner. Crucially, the court directed that the appeal should be decided without insisting on the payment of 20% of the tax demanded, as per a circular of 2017. Furthermore, recovery proceedings pursuant to the assessment order were to be kept in abeyance until a decision was taken on the appeal. The ratio decidendi is that statutory appellate authorities must dispose of appeals expeditiously and that recovery proceedings can be stayed pending such disposal, especially when a circular provides for waiver of pre-deposit in certain circumstances.

What were the facts?

The petitioner, Avanankuzhi Service Co-operative Bank Ltd, filed a writ petition before the High Court of Kerala seeking a direction to the Commissioner of Income Tax (Appeals) to dispose of its appeal. The appeal was filed against an assessment order passed by the Income Tax Officer. The petitioner sought a directive for a speedy resolution of the appeal, which was pending before the second respondent. The assessment year(s) and the specific amount in dispute are not recorded in the judgment. The procedural history involves the filing of an appeal (Ext.P3) against an assessment order (Ext.P2).

What were the issues?

1. Whether the High Court should issue a writ of mandamus directing the Commissioner of Income Tax (Appeals) to dispose of the pending appeal filed by the assessee against the assessment order. This issue turns on the court's supervisory jurisdiction over quasi-judicial authorities and the principle of ensuring timely disposal of appeals. The assessee contended that a direction is necessary for the expeditious disposal of their appeal. The revenue did not record any specific argument against the issuance of such a direction.

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.3725 OF 2020(M) PETITIONER/S: AVANANKUZHI SERVICE CO-OPERATIVE BANK LTD NO 2387, AVANANKUZHI, NEYYATTINKARA TALUK, THIRUVANANTHAPURAM, REPRESENTED BY ITS SECRETARY, P.S.JAYASREE, W/O BIJU RADHAKRISHNAN, AGED 49 YEARS, RESIDING AT VARUTHATTIL, MANGALATH KONAM, KATTACHALKUZHI P.O.THIRUVANANTHAPURAM DISTRICT. BY ADV. SRI.BABU S. NAIR RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 2(2), OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX, RANGE 2, AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, PIN-695 003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, PIN-695 003. 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.3725 OF 2020(M) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal 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.3725 OF 2020(M) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE RETURNS FILED BY THE PETITIONER FOR THE ASSESSMENT YEAR 2018- 19 EXHIBIT P2OF THE ASSESSMENT ORDER ISSUED BY THE FIRST RESPONDENT DATED 29.6.2019 EXHIBIT P3OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 23.7.2019 ALONG WITH THE ACKNOWLEDGMENT OF RECEIPT EXHIBIT P4OF THE STAY PETITION FILED BY THE PETITIONER IN EXHIBIT P3 APPEAL DATED, 7.2 .2020

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