THE THALAVOOR RURAL CO-OPERATIVE SOCIETY LTD NO.Q 1428 vs. THE INCOME TAX OFFICER

WP(C)/4746/2020HC KeralaKLHC01012937202019 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) in accordance with the law. This decision must be made after providing the petitioner (assessee) an opportunity of hearing, within a period of three months from the date of receiving a copy of the judgment. Crucially, the court ordered that the condition of paying 20% of the tax demanded should not be insisted upon, as per a circular from 2017. Furthermore, recovery proceedings initiated pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The court did not decide on the merits of the appeal itself, but rather on the procedural aspect of its expeditious disposal.

What were the facts?

The petitioner, The Thalavoor Rural Co-operative Society Ltd, represented by its Secretary, filed a writ petition before the High Court of Kerala. The petition sought a direction for the disposal of an appeal (Ext.P3) filed before the Commissioner of Income Tax (Appeals). This appeal was against an assessment order (Ext.P1). The petitioner is the assessee, and the respondents are the Income Tax Officer and the Commissioner of Income Tax (Appeals). The specific assessment year(s) and the amount in dispute are not recorded. The procedural history involves the filing of the appeal before the CIT(A) and the subsequent writ petition seeking its expeditious disposal.

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 assessee. Assessee's Contention: The assessee sought a direction for the disposal of their appeal before the Commissioner of Income Tax (Appeals) against the assessment order. The assessee also sought to have recovery proceedings stayed until the appeal is decided and requested that the condition of paying 20% of the tax demanded not be insisted upon, referencing a circular from 2017. Revenue's Contention: The judgment records no specific contention from the revenue's side. However, the court heard both sides, implying the revenue had an opportunity to present its arguments.

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.4746 OF 2020(P) PETITIONER/S: THE THALAVOOR RURAL CO-OPERATIVE SOCIETY LTD NO.Q 1428 REPRESENTED BY ITS SECRETARY, THALAVOOR P.O. KOLLAM DISTRICT 691 508. BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD-4, OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX, KOLLAM RANGE, AAYAKAR BHAVAN, KARBALA JUNCTION, KOLLAM 691 001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVN, 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.4746 OF 2020(P) 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.4746 OF 2020(P) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 29.11.2019. EXHIBIT P2 AOF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 29.11.2019. EXHIBIT P3 AOF THE ONLINE APPEAL DATED 25/12/2019 ALONG WITH GROUNDS OF APPEAL, FILED BEFORE THE 2ND RESPONDENT AGAINST EXT. P1 ASSESSMENT ORDER. EXHIBIT P4 AOF THE STAY PETITION FIELD BY THE PETITIONER IN EXT. P3 APPEAL DATED 24.01.2020. EXHIBIT P5 AOF THE JUDGMENT DATED 19.07/2019 IN W.A. NO. 1639 OF 2019. EXHIBIT P6 AOF THE JUDGMENT DATED 25.11.2019 IN WPC NO. 31787 OF 2019.

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