THE KALLARA VILLAGE SERVICE CO-OPERATIVE BANK LTD. NO.3123 vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/4451/2020HC KeralaKLHC01012163202017 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.P2) within three months from the date of receipt of a copy of the judgment. The 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, 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 High Court did not decide the merits of the appeal itself.

What were the facts?

The petitioner, The Kallara Village Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction to dispose of its appeal (Ext.P2) pending before the Commissioner of Income Tax (Appeals) (first respondent). The appeal was filed against an assessment order (Ext.P1) passed by the Income Tax Officer, Ward No.2, Kottayam (second respondent). The petitioner sought a timely decision on their appeal.

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 sought a direction for the expeditious disposal of their appeal. The judgment does not record any specific arguments made by the petitioner beyond this request. Revenue's Contention: The judgment does not record any specific arguments made by the revenue.

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 MONDAY, THE 17TH DAY OF FEBRUARY 2020 / 28TH MAGHA, 1941 WP(C).No.4451 OF 2020(F) PETITIONER/S: THE KALLARA VILLAGE SERVICE CO-OPERATIVE BANK LTD. NO.3123 KALLARA, KOTTAYAM DISTRICT, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, KOTTAYAM, PIN-686001 2 THE INCOME TAX OFFICER, WARD NO.2 KOTTAYAM, PIN-686001. OTHER PRESENT: SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.4451 OF 2020(F) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P2 appeal preferred before the first 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 first respondent to take a decision on Ext.P2 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.4451 OF 2020(F) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 21.12.2019 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2017-18. EXHIBIT P2 COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2017-18 DATED 17.01.2020 EXHIBIT P3 COPY OF THE PROCEEDING DATED 06.02.2020 ISSUED BY THE 2ND RESPONDENT DEMANDING THE DISPUTED TAX.

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