THE THATHAMANGALAM SERVICE CO-OPERATIVE BANK LTD. NO.P 502, vs. THE INCOME TAX OFFICER,

WP(C)/3705/2020HC KeralaKLHC01010286202011 February 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the second respondent, the Commissioner of Income Tax (Appeals), to decide the appeal (Ext.P2) in accordance with law. This decision is to be made after affording an opportunity of hearing to the petitioner (assessee) within a period of three months from the date of receipt of a copy of the judgment. Crucially, the Court directed that the decision should be made without insisting on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment order were ordered to be kept in abeyance until a decision is taken on the appeal. The principle here is that the High Court can direct statutory authorities to dispose of appeals expeditiously, and can also grant interim relief regarding recovery proceedings pending appeal disposal, considering relevant circulars.

What were the facts?

The petitioner, The Thathamangalam Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction to expedite the disposal of its appeal (Ext.P2) pending before the Commissioner of Income Tax (Appeals) (second respondent). The appeal was filed against an assessment order (Ext.P1) passed by the Income Tax Officer (first respondent). The petitioner sought a direction for the Commissioner to decide the appeal within a stipulated period. The Court heard both parties and issued directions regarding the disposal of the appeal and the stay of recovery proceedings.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of the pending appeal filed by the assessee. Assessee's Contention: The assessee, The Thathamangalam Service Co-operative Bank Ltd., approached the High Court seeking a direction for the expeditious disposal of its appeal before the Commissioner of Income Tax (Appeals). No specific legal arguments or reliance on authorities were recorded for the assessee's prayer for direction. Revenue's Contention: No specific arguments or contentions were recorded for the revenue in response to the assessee's prayer for a direction to dispose 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.3705 OF 2020(K) PETITIONER/S: THE THATHAMANGALAM SERVICE CO-OPERATIVE BANK LTD. NO.P 502, THATHAMANGALAM, PALAKKAD-678012, REPRESENTED BY ITS SECRETARY K.JYOTHI, AGED 42, W/O.DIVYA PRASAD. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON SMT.K.KRISHNA RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD 5, AYAKAR BHAVAN, PALAKKAD-678014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), SAKTHAN NAGAR, THRISSUR-680021. OTHER PRESENT: SC JOSE JOSEPH 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.3705 OF 2020(K) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P2 appeal preferred before the second respondent/Commissioner of Income Tax (Appeals) against the assessment order Ext.P1. 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.P2 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.3705 OF 2020(K) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2017-18 DATED 25.12.2019. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT - 2017-18 DATED 06.1.2020. EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 07.01.2020.

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