THE EZHACHERRY SERVICE CO-OPERATIVE BANK LTD.NO.1548 vs. THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE

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WP(C)/4771/2020HC KeralaKLHC01012854202019 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 specified that this 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, the Court ordered that recovery proceedings pursuant to the assessment order shall be kept in abeyance until a decision is taken on the appeal. The principle established is that appellate authorities should dispose of pending appeals expeditiously, and interim relief regarding recovery can be granted based on relevant circulars.

What were the facts?

The petitioner, The Ezhacherry Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala. The petition sought a direction to the third respondent, the Commissioner of Income Tax (Appeals), to dispose of an appeal (Ext.P3) filed against an assessment order (Ext.P1). The appeal was preferred by the petitioner against the assessment order passed by the Income Tax Officer, Ward 1, Kottayam. The assessment year(s) are not specified in the judgment. The amount in dispute is not stated. The procedural history involves the filing of an appeal before the CIT(A) and the subsequent writ petition seeking its 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. Assessee's contention: The petitioner sought a direction for the expeditious disposal of its appeal before the Commissioner of Income Tax (Appeals). The petitioner relied on a circular of 2017, presumably to support the direction to keep recovery proceedings in abeyance without insisting on 20% of the tax demand. Revenue's contention: No specific contentions were recorded for the revenue in the judgment. The judgment indicates that the matter was heard by the learned counsel on 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 WEDNESDAY, THE 19TH DAY OF FEBRUARY 2020 / 30TH MAGHA, 1941 WP(C).No.4771 OF 2020(V) PETITIONER/S: THE EZHACHERRY SERVICE CO-OPERATIVE BANK LTD.NO.1548 EZHACHERRY P.O.KOTTAYAM DISTRICT-686 651, REPRESENTED BY ITS SECRETARY-IN-CHARGE. BY ADVS. SRI.SHAJI THOMAS SRI.JEN JAISON RESPONDENT/S: 1 THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE MINISTRY OF FINANCE GOVERNMENT OF INDIA , NORTH BLOCK, NEW DELHI-110 001, REPRESENTED BY ITS CHAIRMAN 2 INCOME TAX OFFICER, WARD 1, INCOME TAX OFFICE, PUBLIC LIBRARY BUILDING, SHASTRI ROAD, KOTTAYAM-686 001. 3 COMMISSIONER OF INCOME TAX (APPEALS), KOTTAYAM-686 001. OTHER PRESENT: SRI JOSE JOSEPH 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.4771 OF 2020(V) 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.P1. 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.4771 OF 2020(V) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE PHOTOCOPY OF THE ASSESSMENT ORDER NO ITBA/AST/S/143(3)2019-20/1023326078(1) DATED 28.12.2019 EXHIBIT P2 TRUE PHOTOCOPY OF THE DEMAND NOTICE NO ITBA/AST/S/156/2019-20/1023326200(1) DATED 28.12.2019 ISSUED BY THE 2ND RESPONDENT EXHIBIT P3 TRUE PHOTOCOPY OF THE APPEAL IN FROM 35 FILED BY THE PETITIONER DATED 24.1.2020 FOR THE YEAR 2017-18 BEFORE THE 3RD RESPONDENT EXHIBIT P4 TRUE PHOTOCOPY OF THE APPLICATION FOR STAY DATED 4.2.2020 FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT EXHIBIT P5 TRUE PHOTOCOPY OF THE INTIMATION DATED 4.2.2020 ISSUED BY THE 2ND RESPONDENT EXHIBIT P6 TRUE PHOTOCOPY OF THE JUDGMENT DATED 1.7.2019 IN WA NO 1529/2019 OF THIS HON'BLE COURT

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