VILAVOORKAL SERVICE CO-OPERATIVE SOCIETY LTD., vs. THE INCOME TAX OFFICER,

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WP(C)/4240/2020HC KeralaKLHC01011762202014 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 appeals (Exts.P2 and P4) in accordance with the law. This decision is to be made after providing an opportunity of hearing to the petitioner. The disposal is to be completed within a period of three months from the date of receipt of a copy of the judgment. Crucially, the Court specified that the decision should be taken without insisting on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings initiated pursuant to the assessment orders are to be kept in abeyance until a decision is taken on the appeals. No issue was expressly left undecided.

What were the facts?

The petitioner, Vilavoorkal Service Co-operative Society Ltd., filed a writ petition before the High Court of Kerala seeking a direction to dispose of appeals (Exts.P2 and P4) filed before the Commissioner of Income Tax (Appeals) (third respondent). These appeals were against assessment orders (Exts.P1 and P3). The petitioner sought a directive for the Commissioner of Income Tax (Appeals) to decide these appeals. The Income Tax Officer (first respondent) and the Principal Commissioner of Income Tax (second respondent) are also parties to the proceedings. The General Manager of Trivandrum District Co-operative Bank Ltd. is the fourth respondent.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of the pending appeals filed by the petitioner? The petitioner contended that they have filed appeals before the Commissioner of Income Tax (Appeals) and sought a direction for their expeditious disposal. The revenue did not record any specific arguments in the judgment regarding the disposal of the appeals. The core issue is the delay in the appellate process and the petitioner's request for a time-bound resolution.

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 FRIDAY, THE 14TH DAY OF FEBRUARY 2020 / 25TH MAGHA, 1941 WP(C).No.4240 OF 2020(D) PETITIONER/S: VILAVOORKAL SERVICE CO-OPERATIVE SOCIETY LTD., T 1427, PERUKAVU P.O., PERUKAVU, TRIVANDRUM - 695 573, REPRESENTED BY ITS SECRETARY ANIL KUMAR V. BY ADV. SRI.S.ARUN RAJ RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD-2(4),AAYAKAR BHAWAN, FIRST FLOOR, KAWDIAR P.O., THIRUVANANTHAPURAM - 695 003. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAWAN, KAWDIAR P.O., THIRUVANANTHAPURAM - 695 003. 3 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAWAN, KAWDIAR P.O., THIRUVANANTHAPURAM - 695 003. 4 THE GENERAL MANAGER, M/S.TRIVANDRUM DISTRICT CO-OPERATIVE BANK LTD., HEAD OFFICE, FORT P.O., TRIVANDRUM - 695 023. OTHER PRESENT: SRI CHRISTOPHER ABRAHAM,SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.4240 OF 2020(D) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Exts.P2 and P4 appeals preferred before the third respondent/Commissioner of Income Tax (Appeals) against the assessment orders Exts.P1 and P3. 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 Exts.P2 and P4 appeals 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 orders shall be kept in abeyance. AMIT RAWAL sab JUDGE

WP(C).No.4240 OF 2020(D) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER DATED 27/12/2019 PASSED BY THE 1ST RESPONDENT UNDER SECTION 143(3) OF THE ACT FOR THE AY 2014-15. EXHIBIT P2OF THE FIRST APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT FOR THE AY 2014-15. EXHIBIT P3OF THE ASSESSMENT ORDER DATED 27/12/2019 PASSED BY THE 1ST RESPONDENT UNDER SECTION 143(3) OF THE ACT FOR THE AY 2016-17. EXHIBIT P4OF THE FIRST APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT FOR THE AY 2016-17. EXHIBIT P5OF THE APPLICATION OF STAY FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT WITH COPY TO THE 3RD RESPONDENT FOR THE AY 2014-15. EXHIBIT P6OF THE APPLICATION FOR STAY FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT WITH COPY TO THE 3RD RESPONDENT FOR THE AY 2016-17. EXHIBIT P7OF THE NOTICE DATED 5/2/2020 ISSUED UNDER SECTION 226 (3) OF THE ACT TO THE 4TH RESPONDENT, THE GENERAL MANAGER, M/S.TRIVANDRUM DISTRICT CO- OPERATIVE BANK,TRIVANDRUM. EXHIBIT P8OF THE JUDGMENT DATED 4/12/2019 IN WP(C)NO.27295 OF 2019 PASSED BY THIS HONOURABLE COURT IN SIMILAR MATTER IN THE CASE OF PACS.

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