EDACHERY SERVICE CO-OPERATIVE BANK LTD NO. 9349 vs. THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE

WP(C)/3821/2020HC KeralaKLHC01010488202011 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) (third respondent) to decide the appeal (Ext.P3) in accordance with law. This decision is to be made after providing an opportunity of hearing to the petitioner. The disposal is to be completed within three months from the date of receipt of a copy of the judgment. Crucially, the Court ordered 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. No specific issue was left undecided; the Court provided a clear directive.

What were the facts?

The petitioner, Edachery Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction for the disposal of its appeal (Ext.P3) pending before the Commissioner of Income Tax (Appeals) (third respondent). The appeal was filed against an assessment order (Ext.P2). The petitioner sought a directive for the Commissioner to decide the appeal expeditiously. The assessment order was passed by the Income Tax Officer, Ward 2(2), Kozhikode (second respondent). The Central Board of Direct Taxes (first respondent) was also arrayed as a party.

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 contended that their appeal was pending before the Commissioner of Income Tax (Appeals) and sought a direction for its disposal. The revenue did not record any specific arguments 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 TUESDAY, THE 11TH DAY OF FEBRUARY 2020 / 22ND MAGHA, 1941 WP(C).No.3821 OF 2020(C) PETITIONER/S: EDACHERY SERVICE CO-OPERATIVE BANK LTD NO. 9349 P.O.EDACHERI, VADAKARA ,KOZHIKODE-673 502, REPRESENTED BY ITS SECRETARY, NIDHEESH O.P. BY ADV. DR.K.P.PRADEEP RESPONDENT/S: 1 THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE MINISTRY OF FINANCE GOVERNMENT OF INDIA,NORTH BLOCK, NEW DELHI-110 001, REPRESENTED BY ITS CHAIRMAN 2 INCOME TAX OFFICER, WARD 2 (2), AAYAKKAR BHAVAN, INCOME TAX OFFICE, MANANCHIRA, KOZHIKODE-673 001 3 COMMISSIONER OF INCOME TAX (APPEALS), KOZHIKODE, AAYAKKAR BHAVAN, INCOME TAX OFFICE, MANANCHIRA, KOZHIKODE-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.3821 OF 2020(C) 2

JUDGMENT Petitioner has approached this Court seeking a direction to dispose of Ext.P3 appeal preferred before the third respondent/Commissioner of Income Tax (Appeals) against the assessment order Ext.P2. 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.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.3821 OF 2020(C) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE RETURN OF INCOME DATED 02.11.2017 FOR THE ASSESSMENT YEAR 2017-18 IN PAN AAAAE1191K EXHIBIT P2OF THE ASSESSMENT ORDER NO.AAAAE1191K DATED 17.12.2019 ISSUED FOR THE YEAR 2017-18 BY THE 2ND RESPONDENT EXHIBIT P3OF THE APPEAL DATED 04.01.2020 FILED BEFORE THE 3RD RESPONDENT FOR THE YEAR 2017-18 EXHIBIT P4OF THE DEMAND NO PAN AAAAE1191K/2017-18 DATED 17.12.2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT EXHIBIT P5OF THE STAY APPLICATION FILE DON 04.02.2020 BEFORE THE 3RD RESPONDENT IN EXT P3 APPEAL

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