OCHIRA SERVICE CO-OPERATIVE BANK LTD. NO. 1391 vs. THE CENTRAL BOARD OF DIRECT TAXES

WP(C)/4442/2020HC KeralaKLHC01012161202017 February 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the third respondent, the Commissioner of Income Tax (Appeals), to decide the appeal (Ext.P2) in accordance with the law. This decision is to be made after providing the petitioner an opportunity of hearing. The disposal is to be completed within three months from the date of receipt of a copy of the judgment. 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, recovery proceedings initiated pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The ratio decidendi is that appellate authorities should dispose of appeals expeditiously and that recovery proceedings should be stayed pending appeal, subject to specific conditions like not insisting on pre-deposit beyond what is legally mandated or permissible by circulars.

What were the facts?

The petitioner, Ochira Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction to the Commissioner of Income Tax (Appeals) to dispose of its appeal. The appeal, filed as Ext.P2, was against an assessment order (Ext.P1) passed by the Income Tax Officer. The petitioner sought a speedy resolution of its appeal. The respondents included the Central Board of Direct Taxes, the Income Tax Officer, and the Commissioner of Income Tax (Appeals). The procedural history involves the filing of the appeal before the Commissioner (Appeals) and the subsequent writ petition for a direction to expedite the 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 petitioner? (Question of procedure/administration) Assessee's Contention: The petitioner bank sought a direction for the expeditious disposal of its appeal before the Commissioner of Income Tax (Appeals). No specific legal arguments were recorded, but the prayer implies a grievance regarding the delay in adjudication. Revenue's Contention: The judgment records that the learned counsel for both sides were heard, implying the revenue also participated in the proceedings. However, no specific arguments or contentions for the revenue were 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 MONDAY, THE 17TH DAY OF FEBRUARY 2020 / 28TH MAGHA, 1941 WP(C).No.4442 OF 2020(E) PETITIONER/S: OCHIRA SERVICE CO-OPERATIVE BANK LTD. NO. 1391 CHANGANKULANGARA, VAVVAKKAVU OCHIRA P.O., OACHIRA-690526, REPRESENTED BY ITS SECRETARY MEERA DEVI. BY ADVS. DR.K.P.PRADEEP SMT.T.THASMI RESPONDENT/S: 1 THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110001, REPRESENTED BY ITS CHAIRMAN. 2 INCOME TAX OFFICER, WARD 3, AAYAKKAR BHAVAN, ALAPPUZHA COLLECTORATE, ALAPPUZHA-688001. 3 *COMMISSIONER OF INCOME TAX (APPEALS), ALAPPUZHA, AAYAKAR BHAVAN, ALAPPUZHA-688001. R3 IS CORRECTED AS PER ORDER IN I.A NO.1 OF 2020 DATED 17.2.2020 COMMISSIONER OF INCOME TAX (APPEALS) KOTTAYAM, AAYAKAR BHAVAN, PUBLIC LIBRARY BUILDING, LAL BAHADUR SASTRI ROAD, KOTTAYAM - 686 001 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.4442 OF 2020(E) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P2 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.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.4442 OF 2020(E) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER NO.AAAA05787 DATED 30.12.2019 ISSUED FOR THE YEAR 2017-18 BY THE 2ND RESPONDENT. EXHIBIT P2OF THE APPEAL DATED 15.01.2020 FILED BEFORE THE 3RD RESPONDENT FOR THE ASSESSMENT YEAR 2017-18. EXHIBIT P3OF THE DEMAND NOTICE NO.PAN AAAA05787H/2017-18 DATED 30.12.2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P4OF THE STAY APPLICATION FILED ON 15.01.2020 BEFORE THE 3RD RESPONDENT IN EXT.P2 APPEAL.

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