KAREEPRA PANCHAYATH SERVICE CO-OPERATIVE BANK LTD., vs. CENTRAL BOARD OF DIRECT TAXES,

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WP(C)/4782/2020HC KeralaKLHC01013067202019 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.P3) within a period of three months from the date of receipt of a copy of the judgment. The Court also stipulated that the decision should be taken in accordance with law, after affording an opportunity of hearing to the petitioner. Crucially, the Court directed that the Commissioner should not insist 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 was taken on the appeal. The principle established is that appellate authorities should dispose of pending appeals within a reasonable time, and recovery can be stayed pending such disposal, with specific consideration for circulars regarding pre-deposit requirements.

What were the facts?

The petitioner, Kareepra Panchayath 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.P3) pending before the Commissioner of Income Tax (Appeals) (third respondent). The appeal was filed against an assessment order (Ext.P2). The petitioner sought a directive for the Commissioner to decide the appeal expeditiously. 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 Commissioner of Income Tax (Appeals) should be directed to dispose of the pending appeal filed by the petitioner? The petitioner contended that their appeal was pending before the Commissioner of Income Tax (Appeals) and sought a direction for its disposal. The revenue did not record any specific contentions in the judgment regarding this issue.

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 WEDNESDAY, THE 19TH DAY OF FEBRUARY 2020 / 30TH MAGHA, 1941 WP(C).No.4782 OF 2020(W) PETITIONER/S: KAREEPRA PANCHAYATH SERVICE CO-OPERATIVE BANK LTD., NO.3827, KAREEPRA, KUZHIMATHICADU, P.O, KOLLAM-691506, REPRESENTED BY ITS SECRETARY ANUPAMA.K.R BY ADVS. DR.K.P.PRADEEP SMT.T.THASMI RESPONDENT/S: 1 CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE GOVERNMENT OF INDIA, NORTH BLOCK NEW DELHI-110001, REPRESENTED BY ITS CHAIRMAN 2 INCOME TAX OFFICER, WARD 4, AAYAKAR BHAVAN, INCOME TAX OFFICE, NEAR KARBALA JUNCTION, RAILWAY STATION ROAD, KOLLAM-691001 3 COMMISSIONER OF INCOME TAX(APPEALS) THIRUVANANTHAPRUAM, AAYAKAR BHAVAN, INCOME TAX OFFICE, KOWDIAR, THIRUVANANTHAPURAM-695003 OTHER PRESENT: SRI CHRISTOPHER ABRAHAM SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.4782 OF 2020(W) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal preferred before the third respondent/Commissioner of Income Tax (Appeals) against the assessment order Ext.P2. 2. Having heard the learned counsel on both sides, the writ petition is disposed of with a direction to the third 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.4782 OF 2020(W) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE RETURN OF INCOME DATED 14.05.2018 FOR THE ASSESSMENT YEAR 2017- 18 IN PAN AACAT4469M EXHIBIT P2OF THE ASSESSMENT ORDER NO.AACAT4469MDATED 16.12.2019 ISSUED FOR THE YEAR 2017-18 BY THE 2ND RESPONDENT EXHIBIT P3OF THE APPEAL DATED 09.01.2020 FILED BEFORE THE 3RD RESPONDENT FOR THE YEAR 2017-18 EXHIBIT P4OF THE DEMAND NOTICE NO.IBA/AST/S/156/2019-20 1022418878(II) 16.12.2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT EXHIBIT P5OF THE STAY APPLICATION FILED ON 10.02.2020 BEFORE THE 3RD RESPONDENT IN EXT P3 APPEAL

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