THE EROOR SERVICE CO-OPERATIVE BANK LTD NO.E 859 vs. INCOME TAX OFFICER

WP(C)/3757/2020HC KeralaKLHC01010612202011 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 second respondent, the Commissioner of Income Tax (Appeals), to decide the appeal (Ext.P3) in accordance with law. The court mandated that an opportunity of hearing be provided to the petitioner. The decision on the appeal is to be made within a period of three months from the date of receipt of a copy of the judgment. 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 are to be kept in abeyance until a decision is taken on the appeal. The ratio decidendi is that courts can direct appellate authorities to dispose of pending appeals expeditiously, especially when there is a delay, and can grant interim relief by staying recovery proceedings.

What were the facts?

The petitioner, The Eroor Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala seeking a direction to expedite the disposal of its appeal. This appeal, marked as Ext.P3, was filed before the Commissioner of Income Tax (Appeals) against an assessment order (Ext.P1). The assessment order was passed by the Income Tax Officer, Ward 1(15), Kochi. The petitioner sought a direction for the appellate authority to decide the appeal expeditiously. The revenue was represented by the Income Tax Officer and the Commissioner of Income Tax (Appeals). The assessment year is 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 assessee. The assessee contended that their appeal was pending and sought a direction for its speedy disposal. The revenue did not record any specific arguments against this direction. The core issue revolves around the procedural delay in the appellate process and the court's power to direct timely adjudication. The question is whether the court should intervene to ensure the appellate authority acts within a reasonable timeframe, considering the potential prejudice to the assessee due to prolonged pendency of the appeal.

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.3757 OF 2020(T) PETITIONER/S: THE EROOR SERVICE CO-OPERATIVE BANK LTD, NO.E 859 EROOR P.O., THRIPUNITHURA, ERNAKULAM-682 036, REPRESENTED BY ITS SECRETARY BY ADVS. SRI.C.A.JOJO SMT.SWATHY S. RESPONDENT/S: 1 INCOME TAX OFFICER WARD 1(15), KOCHI, CENTRAL REVENUE TOWER, KOCHI-682 018 2 COMMISSIONER OF INCOME TAX (APPEALS)-2 OFFICE OF THE COMMISSIONER OF INCOME TAX, CENTRAL REVENUE TOWER, KOCHI-682 018 OTHER PRESENT: SC JOSE JOSEPH 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.3757 OF 2020(T) 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.3757 OF 2020(T) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR AY 2O17-18 DATED 21.12.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P2 AOF THE DEMAND NOTICE U/S. 156 DATED 21.12.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P3 AOF THE APPEAL FOR AY-2017-18 BEFORE THE 2ND RESPONDENT DATED 18.01.2020 EXHIBIT P4 AOF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 29.01.2020 FOR 20% OF TAX EXHIBIT P5 AOF THE PENALTY NOTICE ISSUED BY THE 1ST RESPONDENT DATED 28.01.2020

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