KUIRACHIRA SERVICE CO-OPERATIVE BANK LTD.NO.637, vs. INCOME TAX OFFICER,

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WP(C)/4248/2020HC KeralaKLHC01011765202014 February 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the second respondent, the Commissioner of Income Tax (Appeals), to decide the appeals (Exts.P3 and P7) in accordance with the law. The court specified that this decision should be taken after providing an opportunity of hearing to the petitioner. Crucially, the court directed that the appeals be decided within a period of three months from the date of receipt of a copy of the judgment. Furthermore, the court ordered that the Commissioner should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Until a decision is reached on the appeals, recovery proceedings initiated pursuant to the assessment orders are to be kept in abeyance. The court did not decide on the merits of the appeals themselves, but rather on the procedural aspect of their disposal.

What were the facts?

The petitioner, Kuriachira Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction to dispose of two appeals (Exts.P3 and P7) filed before the Commissioner of Income Tax (Appeals)-2. These appeals were against assessment orders (Exts.P1 and P5). The petitioner sought a directive for the Commissioner to decide these appeals expeditiously. The revenue was represented by the Income Tax Officer, Ward-2(2), Thrissur, and the Commissioner of Income Tax (Appeals)-2.

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? Assessee's Contention: The petitioner sought a direction for the expeditious disposal of their appeals before the Commissioner of Income Tax (Appeals). The petitioner relied on a circular of 2017, implying it might relate to the conditions for appeal disposal or stay of recovery. Revenue's Contention: The judgment does not explicitly record any specific contentions raised by the revenue. However, the court's direction to dispose of the appeals without insisting on 20% of the tax demanded suggests that the revenue might have been insisting on this condition for the disposal or stay of the appeals.

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.4248 OF 2020(E) PETITIONER/S: KURIACHIRA SERVICE CO-OPERATIVE BANK LTD.NO.637, KURIACHIRA P.O., THRISSUR - 680 006 REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SMT.SWATHY S. RESPONDENT/S: 1 INCOME TAX OFFICER, WARD-2(2), THRISSUR,AAYAKAR BHAVAN, NEAR SHAKTHANTHAMPURAN NAGAR, THRISSUR - 680 001. 2 COMMISSIONER OF INCOME TAX (APPEALS)-2, OFFICE OF THE COMMISSIONER OF INCOME TAX, CENTRAL REVENUE TOWER, THRISSUR - 680 001. 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.4248 OF 2020(E) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Exts.P3 and P7 appeals preferred before the second respondent/Commissioner of Income Tax (Appeals) against the assessment orders Exts.P1 and P5. 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 Exts.P3 and P7 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.4248 OF 2020(E) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER AY 2012-13 DATED 24/09/2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 AOF THE DEMAND NOTICE U/S 156 RESPONDENT. EXHIBIT P3 AOF THE APPEAL FOR AY 2012-13 BEFORE THE 2ND RESPONDENT DATED 25/10/2019. AOF THE STAY ORDER OF THE 3RD RESPONDENT DATED 22/05/2017. EXHIBIT P4 AOF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 15/11/2019 FOR 20% OF TAX. EXHIBIT P5 AOF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 24/09/2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P6 AOF THE DEMAND NOTICE U/S 156 RESPONDENT. EXHIBIT P7 AOF THE APPEAL FOR AY 2017-18 BEFORE THE 2ND RESPONDENT DATED 07/11/2019. EXHIBIT P8 AOF THE NOTICE U/S 221(1) ISSUED BY THE 1ST RESPONDENT DATED 15/11/2019.

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