THE NAGARIPURAM SERVICE CO-OPERATIVE BANK LTD., vs. THE INCOME TAX OFFICER,

WP(C)/4827/2020HC KeralaKLHC01013127202020 February 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition with a direction to 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, within a period of three months from the date of receipt of a copy of the judgment. Crucially, the Court directed that the disposal should not insist 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 is that appellate authorities should dispose of appeals expeditiously, and recovery can be stayed pending such disposal, with specific directions regarding pre-deposit requirements based on circulars.

What were the facts?

The petitioner, The Nagaripuram 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.P2) pending before the Commissioner of Income Tax (Appeals). This appeal was filed against an assessment order (Ext.P1). The petitioner sought a direction for the timely disposal of the appeal. The assessment year(s) are not specified in the judgment. The amount in dispute is not stated. The procedural history involves the filing of an appeal before the CIT(A) and a subsequent writ petition before the High Court.

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). The petitioner sought a direction for the expeditious disposal of its appeal. The revenue's contentions are not recorded in the judgment. The judgment does not record any specific arguments made by the revenue.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL THURSDAY, THE 20TH DAY OF FEBRUARY 2020 / 1ST PHALGUNA, 1941 WP(C).No.4827 OF 2020(C) PETITIONER/S: THE NAGARIPURAM SERVICE CO-OPERATIVE BANK LTD., NAGARIPURAM, MANNUR, PATHIRIPALA, PALAKKAD-678 642, REPRESENTED BY ITS SECRETARY, GEETHA K, AGED 56, D/O KRISHNANKUTTY NAIR. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD 2, AYAKAR BHAVAN, PALAKKAD-678 014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), SAKTHAN NAGAR, THRISSUR-680 021. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

JUDGMENT Dated this the 20th day of February 2020 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.4827 OF 2020(C) 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2017-18 DATED 27.12.2019 EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT 2017-18 DATED 6.1.2020 EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 6.1.2020

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