PANANCHERY SERVICE CO-OPERATIVE BANK LTD vs. THE INCOME TAX OFFICER

WP(C)/4643/2020HC KeralaKLHC01012535202018 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 law. This decision is to be made after providing the petitioner with an opportunity of hearing. The court specified that the disposal should occur within three months from the date of receiving a copy of the judgment. Crucially, the court directed that the Commissioner should not insist on the payment of 20% of the tax demanded, as per a circular issued in 2017. Until the appeal is decided, recovery proceedings initiated pursuant to the assessment order are to be kept in abeyance. The court did not decide the merits of the appeal itself, but rather the procedural aspect of its disposal.

What were the facts?

The petitioner, Pananchery 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 pending appeal. The assessment year(s) are not specified. The dispute concerns tax demanded under the assessment order. The procedural history involves the filing of the appeal before the CIT(A) which remained undecided.

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? Assessee's Contention: The petitioner bank sought a direction from the High Court for the expeditious disposal of its appeal before the Commissioner of Income Tax (Appeals). The petitioner relied on a circular of 2017 concerning the payment of 20% of the tax demanded. Revenue's Contention: The revenue, represented by the Income Tax Officer and the Commissioner of Income Tax (Appeals), was heard by the court. No specific arguments or reliance on authorities by the revenue are recorded in the judgment.

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 TUESDAY, THE 18TH DAY OF FEBRUARY 2020 / 29TH MAGHA, 1941 WP(C).No.4643 OF 2020(E) PETITIONER: PANANCHERY SERVICE CO-OPERATIVE BANK LTD NO.541, PATTIKKAD P.O., THRISSUR DISTRICT, PIN - 680 652, REPRESENTED BY ITS SECRETARY-IN-CHARGE BY ADVS. SRI.C.A.JOJO SMT.SWATHY S. RESPONDENT: 1 THE INCOME TAX OFFICER WARD-2(4), AYAKAR BHAVAN, NEAR SAKTHAN STAND, THRISSUR - 68001 2 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, NEAR SAKTHAN STAND, THRISSUR - 68001 BY SRI JOSE JOSEPH, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.4643 OF 2020(E) 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, JUDGE Skk//22022020

WP(C).No.4643 OF 2020(E) 3 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER AY 2012-13 DATED 18.11.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P2 AOF THE DEMAND NOTICE U/S 156 DATED 18.11.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P3 AOF THE APPEAL FOR AY 2012-13 BEFORE THE 2ND RESPONDENT DATED 19.12.2019 EXHIBIT P4 AOF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 14.01.2020 FOR 20% OF TAX RESPONDENTS' EXHIBITS: NIL

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