THE VAZHUTHACAUD SERVICE CO-OPERATIVE SOCIETY LTD. NO. T 1353 vs. THE INCOME TAX OFFICER

WP(C)/4670/2020HC KeralaKLHC01012751202019 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) (2nd respondent) to decide the appeal (Ext.P3) 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 law, after providing the petitioner an opportunity of hearing. Crucially, the Court directed that the disposal 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 are to be kept in abeyance until a decision is taken on the appeal. The principle established is that appellate authorities should be directed to dispose of appeals within a stipulated time, with specific conditions regarding pre-deposit requirements and stay of recovery proceedings.

What were the facts?

The petitioner, The Vazhuthacaud Service Co-operative Society Ltd., filed a writ petition before the High Court of Kerala seeking a direction for the disposal of its appeal (Ext.P3) filed before the Commissioner of Income Tax (Appeals) (2nd respondent). This appeal was against an assessment order (Ext.P1) passed by the Income Tax Officer (1st respondent). The petitioner sought a speedy resolution of their appellate proceedings. The assessment year(s) are not specified in the judgment. The amount in dispute is not stated.

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 argued for a direction to the appellate authority to expedite the disposal of their appeal. The revenue, represented by the Standing Counsel, was heard by the Court. No specific arguments from the revenue are recorded beyond their presence and being heard.

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.4670 OF 2020(G) PETITIONER: THE VAZHUTHACAUD SERVICE CO-OPERATIVE SOCIETY LTD. NO. T 1353 REPRESENTED BY ITS SECRETARY -IN-CHARGE, SASTHAMANGALAM P.O., EDAPAZHANJI, THIRUVANANTHAPURAM DISTRICT, PIN-695010. BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENTS: 1 THE INCOME TAX OFFICER WARD-2(1), OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, KAWDIAR P.O., THIRUVANANTHAPURAM, PIN-695003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, KAWDIAR, THIRUVANANTHAPURAM, PIN-695003. 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.4670 OF 2020(G) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal preferred before the 2nd 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 2nd 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 nak JUDGE

WP(C).No.4670 OF 2020(G) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR THE YEAR 2012-2013 DATED 10.12.2019. EXHIBIT P2 AOF THE DEMAND NOTICE ALONG WITH INTIMATION LETTER DATED 10.12.2019, ISSUED BY THE 1ST RESPONDENT. EXHIBIT P3 AOF THE ONLINE APPEAL DATED 10.01.2020 ALONG WITH GROUNDS OF APPEAL FILED BEFORE THE 2ND RESPONDENT, AGAINST EXT-P1 ASSESSMENT ORDER. EXHIBIT P4 AOF THE STAY PETITION FILED BY THE PETITIONER IN EXT.P3 APPEAL DATED 13.01.2020. EXHIBIT P5 AOF THE NOTICE NO.ITBA/COM/F/17/2019-20/1024503076(1) DATED 31.01.2020 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P6 AOF THE JUDGMENT DATED 19.07.2019 IN W.A.NO.1639 OF 2019. EXHIBIT P7 AOF THE JUDGMENT DATED 25.11.2019 IN WP(C) NO.31787 OF 2019. //// P. ATO JUDGE

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