KOODARANHI SERVICE CO-OPERATIVE BANK LIMITED NO.L 74 vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/3771/2020HC KeralaKLHC01010510202011 February 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition with a direction to the first respondent, the Commissioner of Income Tax (Appeals), to decide the appeal (Ext.P2) in accordance with law. The decision is to be made after affording the petitioner an opportunity of hearing, within a period of three months from the date of receipt of a copy of the judgment. 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. Until the appeal is decided, recovery proceedings pursuant to the assessment order are to be kept in abeyance. No issue was expressly left undecided.

What were the facts?

The petitioner, Koodaranhi Service Co-operative Bank Limited, 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) (the first respondent). This appeal was filed against an assessment order (Ext.P1) passed by the Income Tax Officer, Ward 2(3), Kozhikode (the second respondent). The petitioner sought a timely decision on their appeal. The assessment year(s) are not specified in the judgment.

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? The petitioner's contention is that their appeal is pending before the first respondent and they are seeking a direction for its disposal. The revenue's contentions are not recorded in the judgment. No specific legal provisions or precedents were cited by either party in the provided text.

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 TUESDAY, THE 11TH DAY OF FEBRUARY 2020 / 22ND MAGHA, 1941 WP(C).No.3771 OF 2020(V) PETITIONER/S: KOODARANHI SERVICE CO-OPERATIVE BANK LIMITED NO.L 74 KOODARANHI P. O., KOZHIKODE DISTRICT - 673604. REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, KOZHIKODE - 673 001. 2 THE INCOME TAX OFFICER WARD 2 (3), KOZHIKODE, PIN - 673 001. OTHER PRESENT: SC CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.3771 OF 2020(V) 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.3771 OF 2020(V) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 24.12.2019 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 17.1.2020.

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