CHERTHALA GOVERNMENT SERVANTS CO-OPERATIVE BANK LTD NO.235, vs. INCOME TAX OFFICER

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WP(C)/3966/2020HC KeralaKLHC01010948202012 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.P3) within three months from the date of receipt of a copy of the judgment. This decision is to be taken in accordance with law, after providing the petitioner an opportunity of hearing. Crucially, the Court ordered that the disposal should not insist 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 reached on the appeal. The judgment does not expressly leave any issue undecided.

What were the facts?

The petitioner, Cherthala Government Servants Co-operative Bank Ltd., filed an appeal (Ext.P3) before the Commissioner of Income Tax (Appeals) against an assessment order (Ext.P1). The petitioner approached the High Court of Kerala seeking a direction for the disposal of this appeal. The assessment year(s) and the specific amount in dispute are not recorded in the judgment. The procedural history involves the filing of the appeal before the Commissioner (Appeals) and the subsequent writ petition seeking its expeditious disposal.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the pending appeal filed by the petitioner? The petitioner contended that their appeal (Ext.P3) before the second respondent (Commissioner of Income Tax (Appeals)) requires disposal. The revenue did not record any specific contentions in the judgment. The core issue is the delay in the appellate process and the need for a judicial directive to expedite it.

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 WEDNESDAY, THE 12TH DAY OF FEBRUARY 2020 / 23RD MAGHA, 1941 WP(C).No.3966 OF 2020(U) PETITIONER/S: CHERTHALA GOVERNMENT SERVANTS CO-OPERATIVE BANK LTD NO.235, CHERTHALA P.O., ALAPPUZHA-688 524, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT/S: 1 INCOME TAX OFFICER WARD-1 AND TPS, ALAPPUZHA, ALAPPUZHA-688 011. 2 COMMISSIONER OF INCOME TAX (APPEALS), OFFICE OF THE COMMISSIONER OF INCOME TAX, KOTTAYAM-686 002. OTHER PRESENT: SC CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.3966 OF 2020(U) 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 sab JUDGE

WP(C).No.3966 OF 2020(U) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 17.12.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P2 AOF THE DEMAND NOTICE U/S 156 DATED 17.12.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P3 AOF THE APPEAL FOR AY 2017-18 BEFORE THE 2ND RESPONDENT DATED 24.1.2020 EXHIBIT P4 AOF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 3.2.2020 FOR 20% OF TAX.

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