THE PRINCIPAL COMMISSIONER OF INCOME TAX, vs. MYLACHEL SERVICE CO-OPERATIVE BANK LTD.,

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ITA/162/2019HC KeralaKLHC01004857201907 September 2021Author: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR.JUSTICE VIJU ABRAHAM4 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the questions raised in the appeal are substantially covered by the judgments of the Supreme Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax and Chirakkal Service Co-operative Bank Ltd. v. Commissioner of Income Tax. The Court noted the submissions made by the learned counsel for both parties to this effect. Consequently, the High Court dismissed the Income Tax Appeal by following the said Supreme Court judgments. The questions of law were answered accordingly based on these precedents. No specific findings on the merits of the case were recorded, as the decision was based on the concession of the parties regarding the applicability of the Supreme Court's rulings. The operative direction was to dismiss the appeal.

What were the facts?

The appeal is filed by the Principal Commissioner of Income Tax, Thiruvananthapuram, against the order dated December 11, 2017, passed by the Income Tax Appellate Tribunal (ITAT), Cochin Bench, in ITA No. 64/2017. The assessment year in dispute is 2012-13. The respondent is Mylachel Service Co-operative Bank Ltd. The High Court heard the learned counsel for both parties. The parties stated that the questions raised in the appeal are substantially covered by the judgments of the Supreme Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax and Chirakkal Service Co-operative Bank Ltd. v. Commissioner of Income Tax. Based on this submission, the High Court proceeded to dispose of the appeal.

What were the issues?

1. Whether the questions raised in the appeal are covered by the Supreme Court judgments in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax and Chirakkal Service Co-operative Bank Ltd. v. Commissioner of Income Tax? (Question of law) Assessee's Contention: The respondent assessee (Mylachel Service Co-operative Bank Ltd.) did not present any specific arguments as recorded in the judgment. However, their counsel agreed with the Revenue's submission regarding the applicability of the cited Supreme Court judgments. Revenue's Contention: The appellant (Principal Commissioner of Income Tax) contended that the issues involved in the present appeal are substantially covered by the Supreme Court's decisions in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax and Chirakkal Service Co-operative Bank Ltd. v. Commissioner of Income Tax. Therefore, the appeal should be dismissed following these precedents.

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 S.V.BHATTI & THE HONOURABLE MR.JUSTICE VIJU ABRAHAM TUESDAY, THE 7TH DAY OF SEPTEMBER 2021 / 16TH BHADRA, 1943 ITA NO. 162 OF 2019 AGAINST THE ORDER IN ITA 64/2017 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM APPELLANT/S: THE PRINCIPAL COMMISSIONER OF INCOME TAX, THIRUVANANTHAPURAM. BY ADVS. SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT SRI.K.M.V.PANDALAI, INCOME TAX DEPARTMENT RESPONDENT/S: MYLACHEL SERVICE CO-OPERATIVE BANK LTD., OTTASEKHARAMANGALAM,NEYYATTINKARA, THIRUVANANTHAPURAM-695125. BY ADV SRI.S.ARUN RAJ THIS INCOME TAX APPEAL HAVING COME UP FOR HEARING ON 07.09.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA No.162/2019 -2-

J U D G M E N T S.V.Bhatti,J. Heard learned Standing Counsel Mr Christopher Abraham and Adv. Arun Raj S for parties.

Appeal is filed against the order dated 11.12.2017 of Income Tax Appellate Tribunal, Cochin Bench in I.T.A No.64/Coch/2017. The subject matter of the appeal relates to the Assessment Year 2012-13. 3. The learned counsel appearing for the parties state that the questions raised in the appeal are substantially covered by the judgments of Supreme Court in Mavilayi Service Co- operative Bank Ltd. v. Commissioner of Income Tax1 and Chirakkal Service Co-operative Bank Ltd v. Commissioner of Income Tax2 and 1 [2021] 431 ITR 1 (SC) 2 (2016) 384 ITR 490 (Ker.)

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the appeal could be dismissed by following the said judgments. The statement is placed on record. Accordingly, the Income Tax Appeal is dismissed by following the judgments in Mavilayi Service Co-operative Bank and Chirakkal Service Co- operative Bank (supra) and questions are answered accordingly. S.V.BHATTI JUDGE VIJU ABRAHAM JUDGE jjj -4-

Appendix — schedule of exhibits

APPENDIX OF ITA 162/2019 PETITIONER ANNEXURE ANNEXURE-A: TRUE COPY OF THE ORDER u/s 143(3) OF THE INCOME TAX ACT, 1961 OF THE ASSESSING OFFICER DATED 26.03.2015. ANNEXURE-B: TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS), TRIVANDRUM DATED:12.01.2017. ANNEXURE-C: TRUE COPY OF THE ORDER OF THE ITAT IN ITA NO.64/Coch/2017, FOR THE ASSESSMENT YEAR 2012-13 DATED 11.12.2017.

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