NADAKKUTAZHA SERVICE CO-OPERATIVE BANK LTD NO D 2668,, vs. THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE,

WP(C)/3804/2020HC KeralaKLHC01010483202011 February 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the third respondent, 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. This decision is to be made in accordance with the law, after providing the petitioner with an opportunity of hearing. Crucially, the Court directed that the disposal should not insist 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. The principle established is that appellate authorities should dispose of appeals expeditiously, and recovery can be stayed pending such disposal, especially when a relevant circular permits waiver of pre-deposit under certain conditions.

What were the facts?

The petitioner, Nadakkuthazha 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). This appeal was filed against an assessment order (Ext.P2). The petitioner sought a timely decision on their appeal. The respondents were the Central Board of Direct Taxes, the Income Tax Officer, Ward 2(2), and the Commissioner of Income Tax (Appeals). The assessment year(s) are not specified in the judgment.

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). The petitioner sought a direction for the expeditious disposal of their appeal. The revenue did not explicitly record any arguments against this direction in the judgment. The judgment does not record any specific arguments from the revenue regarding the delay or the merits of the appeal.

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.3804 OF 2020(A) PETITIONER/S: NADAKKUTAZHA SERVICE CO-OPERATIVE BANK LTD, NO D 2668, NEAR GOVT HOSPITAL, BADAKARA, VADAKARA, KOZHIKODE-673 101. REPRESENTED BY ITS SECRETARY MANOJAN K.M. 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, AAYAKKAR 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.3804 OF 2020(A) 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.3804 OF 2020(A) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE RETURN OF INCOME DATED 27.12.2017 FOR THE ASSESSMENT YEAR 2017- 18 IN PAN AAAAN 2328M. EXHIBIT P2OF THE ASSESSMENT ORDER NO AAAAN2328M DATED 17.12.2019 ISSUED FOR THE YEAR 2017-18 BY THE 2ND RESPONDENT EXHIBIT P3OF THE APPEAL DATED 7.1.2020 FILED BEFORE THE 3RD RESPONDENT FOR THE YEAR 2017-18 EXHIBIT P4OF THE DEMAND NOTICE NO PAN AAAAN2328M /2017-18 DATED 17.12.2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT EXHIBIT P5OF THE STAY APPLICATION FILED ON 18.1.2020 BEFORE THE 3RD RESPONDENT IN EXT P3 APPEAL

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