PARASUVAIKKAL SERVICE CO-OPERATIVE BANK LTD NO.663 vs. THE CENTRAL BOARD OF DIRECT TAXES

WP(C)/3773/2020HC KeralaKLHC01010526202011 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 made in accordance with the law, after providing an opportunity of hearing to the petitioner. Crucially, the court directed that the appeal should be decided without insisting on the payment of 20% of the tax demanded, as per a circular issued in 2017. Furthermore, recovery proceedings pursuant to the assessment order were ordered to be kept in abeyance until a decision is taken on the appeal. The ratio decidendi is that pending appeals should be disposed of expeditiously, and recovery can be stayed pending such disposal, with specific directions regarding pre-deposit requirements based on extant circulars.

What were the facts?

The petitioner, Parasuvakkal Service Co-operative Bank Ltd., filed an appeal (Ext.P3) before the Commissioner of Income Tax (Appeals) against an assessment order (Ext.P2). The petitioner approached the High Court of Kerala seeking a direction for the disposal of this pending appeal. The assessment year(s) are not specified. The procedural history involves the filing of the appeal before the CIT(A) and the subsequent writ petition seeking expeditious disposal. The amount in dispute is not stated.

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? Assessee's contention: The petitioner seeks a direction for the expeditious disposal of its appeal pending before the third respondent (CIT(A)). Revenue's contention: The judgment records no specific contention from the revenue's side regarding the disposal of the appeal. However, the court's direction addresses the issue of recovery proceedings and payment of 20% of the tax demanded.

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.3773 OF 2020(V) PETITIONER/S: PARASUVAIKKAL SERVICE CO-OPERATIVE BANK LTD NO.663 PP XX 821, PARASUVAIKKAL, THIRUVANANTHAPURAM - 695508, REPRESENTED BY ITS SECRETARY RAKESH S. BY ADVS. DR.K.P.PRADEEP SMT.T.THASMI 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, KOWADIAR, THIRUVANANTHAPURAM - 695 003. 3 COMMISSIONER OF INCOME TAX (APPEALS) THIRUVANANTHAPURAM, AAYAKKAR BHAVAN, INCOME TAX OFFICE, KOWADIAR, THIRUVANANTHAPURAM - 695 003. 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.3773 OF 2020(V) 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.3773 OF 2020(V) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE RETURN OF INCOME FOR THE YEAR 2017-18 DATED 5.9.2018 FILED BY THE PETITIONER UNDER INCOME TAX ACT, 1961. EXHIBIT P2OF THE ASSESSMENT ORDER NO.AAFAT2139P/2017-18 DATED 19.12.2019 ISSUED FOR THE YEAR 2017-18 BY THE 2ND RESPONDENT. EXHIBIT P3OF THE APPEAL DATED 14.1.2020 FILED BEFORE THE 3RD RESPONDENT FOR THE ASSESSMENT YEAR 2017-18. EXHIBIT P4OF THE DEMAND NOTICE NO.PAN AAFAT2139P/2017-18 DATED 19.12.2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P5OF THE STAY APPLICATION FILED ON 13.1.2020 BEFORE THE 3RD RESPONDENT IN EXT. P3 APPEAL.

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