NATTIKA FIRKA CO-OPERATIVE BANK NO.F 1251, vs. INCOME TAX OFFICER,

WP(C)/4652/2020HC KeralaKLHC01012446202018 February 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition by directing the second respondent, 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. This decision is to be made in accordance with the law and after affording an opportunity of hearing to the petitioner. Crucially, the court directed that the decision should be made without insisting on the payment of 20% of the tax demanded, as per a circular issued in 2017. Furthermore, recovery proceedings 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 assessment order or the appeal itself.

What were the facts?

The petitioner, Nattika Firka Co-operative Bank, filed a writ petition before the High Court of Kerala seeking a direction to dispose of its appeal (Ext.P3) pending before the Commissioner of Income Tax (Appeals) (second respondent). The appeal was filed against an assessment order (Ext.P1) passed by the Income Tax Officer (first respondent). The petitioner sought a directive for the expeditious disposal of the appeal. The court heard both parties and considered the matter.

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? (Question of procedure/administrative direction). Assessee's contention: The petitioner bank seeks a direction for the timely disposal of its appeal. No specific arguments are recorded regarding the merits of the appeal or the assessment order itself. Revenue's contention: The revenue, represented by the Standing Counsel, was heard by the court. No specific arguments are recorded regarding the delay in appeal disposal or the merits of the case.

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.4652 OF 2020(F) PETITIONER: NATTIKA FIRKA CO-OPERATIVE BANK NO.F 1251, VALAPAD P.O., THRISSUR - 680 567, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.C.A.JOJO RESPONDENTS: 1 INCOME TAX OFFICER, WARD-2, WEST NADA, GURUVAYOOR, THRISSUR - 680 567. 2 COMMISSIONER OF INCOME TAX (APPEALS)-2, OFFICE OF THE COMMISSIONER OF INCOME TAX, CENTRAL REVENUE TOWER, THRISSUR - 680 001. OTHER PRESENT: 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.4652 OF 2020(F) 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//20022020

WP(C).No.4652 OF 2020(F) 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 17/01/2020 FOR 20% OF TAX. EXHIBIT P5 AOF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 14/11/2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P6 AOF THE DEMAND NOTICE U/S 156 DATED 14/11/2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P7 A RUE COPY OF THE APPEAL FOR AY 2017- 18 BEFORE THE 2ND RESPONDENT DATED 20/12/2019. EXHIBIT P8 AOF THE NOTICE U/S. 221(1) ISSUED BY THE 1ST RESPONDENT DATED 17/01/2020. RESPONDENTS' EXHIBITS: NIL

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