KADANAD SERVICE CO-OPERATIVE BANK LTD. NO.K.2 vs. THE INCOME TAX OFFICER

WP(C)/5033/2020HC KeralaKLHC01013694202020 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.P3) in accordance with the law. This decision must be made after providing the petitioner with an opportunity for a hearing. The disposal is to be completed within three months from the date of receiving a copy of the judgment. Crucially, the court directed that the appeal should not be insisted upon for payment of 20% of the tax demanded, referencing a circular from 2017. Until a decision is reached on the appeal, recovery proceedings stemming from the assessment order (Ext.P1) are to be kept in abeyance. The principle is that appellate authorities should dispose of appeals expeditiously and that recovery proceedings can be stayed pending appeal resolution, subject to specific conditions like those mentioned in the circular.

What were the facts?

The petitioner, Kadanad Service Co-operative Bank Ltd., filed an appeal (Ext.P3) before the Commissioner of Income Tax (Appeals) against an assessment order (Ext.P1). The petitioner approached the High Court of Kerala seeking a direction for the disposal of this appeal. The assessment year(s) and the amount in dispute are not specified in the judgment. The procedural history involves the filing of the appeal before the CIT(A) and the subsequent writ petition seeking expeditious disposal.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the pending appeal filed by the petitioner? (Question of procedure) Assessee's contention: The petitioner seeks a direction for the disposal of their appeal before the second respondent (CIT(A)). Revenue's contention: The judgment records no specific contention from the revenue regarding the disposal of the appeal. The court heard 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 THURSDAY, THE 20TH DAY OF FEBRUARY 2020 / 1ST PHALGUNA, 1941 WP(C).No.5033 OF 2020(D) PETITIONER/S: KADANAD SERVICE CO-OPERATIVE BANK LTD. NO.K.2 ANTHINAD P.O.KOLLAPPALLY,KOTTAYAM DISTRICT, REPRESENTED BY ITS SECRETARY IN-CHARGE. BY ADVS. SRI.SUNIL CYRIAC SMT.DONA AUGUSTINE RESPONDENT/S: THE INCOME TAX OFFICER WARD 2, OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX KOTTAYAM RANGE, INCOME TAX OFFICE, PUBLIC LIBRARY BUILDING, SHASTRI ROAD, KOTTAYAM-686 001. SC JOSE JOSEPH 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.5033 OF 2020(D) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P3 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.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.5033 OF 2020(D) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER DATED 21.12.2019 ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2017-18 EXHIBIT P2OF THE NOTICE OF DEMAND DATED 21.12.2019 ISSUED TO THE PETITIONER BY THE 1ST RESPONDENT EXHIBIT P3OF THE APPEAL DATED 23.1.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT P4OF THE STAY PETITION DATED 4.2.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT P5OF THE JUDGMENT DATED 11.2.2020 IN WPC NO 3838 OF 2020 OF THIS HON'BLE COURT

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