KANNADI SERVICE CO-OPERATIVE BANK LIMITED vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/3828/2020HC KeralaKLHC01010549202011 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.P2) within a period of three months from the date of receipt of a copy of the judgment. This decision is to be taken in accordance with the law, after providing an opportunity of hearing to the petitioner. Crucially, the court directed that the appellate authority should not insist on the payment of 20% of the tax demanded, as per a circular issued in 2017. Furthermore, recovery proceedings initiated pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The court did not decide the merits of the appeal itself, but rather directed its timely disposal.

What were the facts?

The petitioner, Kannadi Service Co-operative Bank Limited, filed a writ petition before the High Court of Kerala seeking a direction for the disposal of its appeal (Ext.P2) before the Commissioner of Income Tax (Appeals). This appeal was filed against an assessment order (Ext.P1) passed by the Income Tax Officer. The petitioner sought a directive for the appellate authority to decide the appeal expeditiously. The High 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, Kannadi Service Co-operative Bank Limited, approached the High Court seeking a direction to the Commissioner of Income Tax (Appeals) to decide its appeal against the assessment order. The primary contention is the need for expeditious disposal of the appeal. Revenue's Contention: The judgment does not explicitly record any specific contentions raised by the revenue. However, the court's directions imply that the revenue was heard, and the court considered the matter in light of submissions from both sides.

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.3828 OF 2020(C) PETITIONER/S: KANNADI SERVICE CO-OPERATIVE BANK LIMITED NO. F 1193, ELAPPULLY P.O. PALAKKAD DISTRICT, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, SHAKTAN NAGAR, THISSUR 680 001. 2 THE INCOME TAX OFFICER, WARD2, AAYKAR BHAVAN, ENGLISH CHURCH ROD, PALAKKAD 678 014. 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.3828 OF 2020(C) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P2 appeal preferred before the first 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 first 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.3828 OF 2020(C) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 24.12.2019 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2017-18. EXHIBIT P2 COPY OF THE APPEAL DATED 24.01.2019 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2017-18. EXHIBIT P3 COPY OF THE ORDER PROCEEDINGS DATED 06.02.2020 ISSUED BY THE 2ND RESPONDENT.

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