ALLEPPEY NORTH SERVICE CO-OPERATIVE BANK LTD NO. 896, vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/3809/2020HC KeralaKLHC01010517202011 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.P2) 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 the petitioner with an opportunity of hearing. Crucially, the court directed that the disposal should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The court did not decide the merits of the appeal itself, but rather directed its expeditious disposal.

What were the facts?

The petitioner, Alleppey North 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.P2) before the Commissioner of Income Tax (Appeals). This appeal was filed against an assessment order (Ext.P1). The respondents were the Commissioner of Income Tax (Appeals) and the Income Tax Officer. The procedural history involves the filing of the appeal before the first respondent and the subsequent writ petition to expedite its 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? Assessee's Contention: The petitioner sought a direction for the disposal of its appeal. The judgment does not explicitly record the petitioner's arguments beyond this request. Revenue's Contention: The judgment does not explicitly record the revenue's arguments. However, the court's direction implies that the revenue's position might have involved insisting on 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.3809 OF 2020(A) PETITIONER/S: ALLEPPEY NORTH SERVICE CO-OPERATIVE BANK LTD NO. 896, AVLOOKUNNU P. O., ALAPUZHA DISTRICT, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, KOZHIKODE, PIN - 673 001 2 THE INCOME TAX OFFICER WARD 4, TIRUR PIN - 676 001. 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.3809 OF 2020(A) 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.3809 OF 2020(A) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 17.12.2019 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2017-18. EXHIBIT P2 COPY OF THE APPEAL MEMORANDUM DATED 7.1.2020 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2017-

18.

EXHIBIT P3 COPY OF THE PROCEEDINGS DATED 21.1.2020 ISSUED BY THE 2ND RESPONDENT DEMANDING TAX.

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