THAMMANAM SERVICE CO-OPERATIVE BANK LTD.NO.E 182, vs. INCOME TAX OFFICER,

WP(C)/3718/2020HC KeralaKLHC01010520202011 February 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the second respondent, the Commissioner of Income Tax (Appeals), to decide the appeal (Ext. P3) within a period of three months from the date of receipt of a copy of the judgment. This decision is to be taken in accordance with law, after providing the petitioner an opportunity of hearing. 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 (Ext. P1) are to be kept in abeyance until a decision is taken on the appeal. The principle here is that appellate authorities should dispose of pending appeals expeditiously, and recovery can be stayed pending such disposal, with specific conditions regarding pre-deposit being relaxed based on circulars.

What were the facts?

The petitioner, Thammanan Service Co-operative Bank Ltd., filed an appeal (Ext. P3) before the Commissioner of Income Tax (Appeals) - 2, Kochi, challenging an assessment order (Ext. P1) passed by the Income Tax Officer, Ward-1(5), Kochi. The petitioner approached the High Court of Kerala seeking a direction for the expeditious disposal of this pending appeal. The assessment years are not specified in the judgment. The amount in dispute is not stated. The procedural history involves the filing of an appeal before the CIT(A) and the subsequent writ petition seeking its disposal.

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 speedy disposal of their appeal before the second respondent (CIT(A)). Revenue's contention: The judgment records no specific contention from the revenue regarding the disposal of the appeal. However, the court's direction implies a consideration of the revenue's position in the context of recovery proceedings.

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.3718 OF 2020(L) PETITIONER/S: THAMMANAM SERVICE CO-OPERATIVE BANK LTD.NO.E 182, THAMMANAM P.O.ERNAKULAM-682 032, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SMT.SWATHY S. RESPONDENT/S: 1 INCOME TAX OFFICER, WARD-1(5), 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 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.3718 OF 2020(L) 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.3718 OF 2020(L) 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR AY 2017-18 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 18.1.2020 EXHIBIT P4 AOF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 29.1.2020 FOR 20% OF TAX EXHIBIT P4 AOF THE PENALTY NOTICE ISSUED BY THE 1ST RESPONDENT DATED 28.1.2020

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