SANTHANPARA SERVICE CO-OPERATIVE BANK LTD. K 344 vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

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WP(C)/4992/2020HC KeralaKLHC01013463202020 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) in accordance with law. This decision is to be made after providing the petitioner an opportunity of hearing, within three months from the date of receiving a copy of the judgment. Crucially, the Court directed that the appeal should be decided without insisting 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 expedite disposal of appeals, and recovery can be stayed pending such disposal, especially when a specific circular allows for waiver of pre-deposit under certain conditions.

What were the facts?

The petitioner, Santhanpara 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) (first respondent). The appeal was filed against an assessment order (Ext.P1) passed by the Income Tax Officer, Ward 2, Thodupuzha (second respondent). The petitioner sought a direction for the timely disposal of the appeal.

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 petitioner? The petitioner sought a direction for the disposal of its appeal. The revenue did not record any specific arguments against this direction in the judgment.

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 THURSDAY, THE 20TH DAY OF FEBRUARY 2020 / 1ST PHALGUNA, 1941 WP(C).No.4992 OF 2020(Y) PETITIONER/S: SANTHANPARA SERVICE CO-OPERATIVE BANK LTD. K 344 PO SANTHANPARA, SANTHANPARA, IDUKKI 685618, REPRESENTED BY ITS SECRETARY BY ADV. SRI.O.D.SIVADAS RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, ERNAKULAM, PIN-682018 2 THE INCOME TAX OFFICER, WARD 2, THODUPUZHA, IDUKKI DISTRICT, PIN-685619 R1 BY SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT OTHER PRESENT: SRI JOSE JOSEPH,SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.4992 OF 2020(Y) 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.4992 OF 2020(Y) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 19.12.2019 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2017-18 EXHIBIT P2 COPY OF THE APPEAL DATED 18.1.2019 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2017-18 EXHIBIT P3 COPY OF THE PROCEEDINGS DATED 19.12.2019 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER

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