KUNNUMMAKKARA SERVICE CO OPERATIVE BANK LTD. 1 vs. THE CENTRAL BOARD OF DIRECT TAXES

WP(C)/3782/2020HC KeralaKLHC01010617202011 February 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the Commissioner of Income Tax (Appeals) to decide the appeal (Ext.P3) within a period of 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 affording an opportunity of hearing to the petitioner. Crucially, the Court directed that the decision should be made 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 are to be kept in abeyance until a decision is taken on the appeal. The ratio decidendi is that appellate authorities should dispose of pending appeals expeditiously, and recovery can be stayed pending such disposal, especially when a relevant circular addresses the pre-deposit requirement.

What were the facts?

The petitioner, Kunnummakara 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) and stay application (Ext.P5) pending before the Commissioner of Income Tax (Appeals). The appeal was filed against an assessment order (Ext.P2). The petitioner sought a directive to the third respondent (Commissioner of Income Tax (Appeals)) to decide the appeal expeditiously. The revenue authorities are the respondents. The assessment year(s) are not specified. The dispute concerns the assessment order and the pending appeal and stay application.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of the pending appeal and stay application filed by the petitioner? Assessee's Contention: The petitioner bank seeks a direction for the timely disposal of its appeal and stay application before the Commissioner of Income Tax (Appeals). The petitioner relies on a circular of 2017 regarding the payment of 20% of the tax demanded. Revenue's Contention: The judgment records no specific contention from the revenue authorities regarding the disposal of the appeal or the stay application.

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.3782 OF 2020(W) PETITIONER/S: KUNNUMMAKKARA SERVICE CO OPERATIVE BANK LTD. 1 KUNNUMMAKKARA, VADAKARA KOZHIKODE-673308 REPRESENTED BY ITS SECRETARY CHANDRAN V 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-110001, REPRESENTED BY ITS CHAIRMAN 2 INCOME TAX OFFICER, WARD 2(2), AAYAKKAR BHAVAN, INCOME TAX OFFICER, MANACHIRA, KOZHIKODE-673001 3 COMMISSIONER OF INCOME TAX(APPEALS) KOZHIKODE, AYYAKAR BHAVAN, INCOME TAX OFFICE, MANACHIRA, KOZHIKODE-673001 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.3782 OF 2020(W) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal or Ext.P5 stay application 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.3782 OF 2020(W) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE RETURN OF INCOME DATED 21.12.2017 FOR THE ASSESSMENT YEAR 2017- 18 IN PAN AALFK3856B EXHIBIT P2OF THE ASSESSMENT ORDER NO.AALFK3856B DATED 17.12.2019 ISSUED FOR THE YEAR 2017-18 BY THE 2ND RESPONDENT EXHIBIT P3OF THE APPEAL DATED 06.01.2020 FILED BEFORE THE 3RD RESPONDENT FOR THE YEAR 2017-18 EXHIBIT P4OF THE DEMAND NOTICE NO PAN AALFK3856B/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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