THE PRINCIPAL COMMISSIONER OF INCOME TAX vs. M/S.KIZHUVILLAM SERVICE CO-OPERATIVE BANK LTD

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ITA/21/2019HC KeralaKLHC01012763201907 June 2019Author: HONOURABLE MR.JUSTICE C.K.ABDUL REHIM,HONOURABLE MR. JUSTICE R. NARAYANA PISHARADI4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court held that the issue involved in this appeal is covered by the Full Bench decision of the High Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax (2019 (2) KHC 287). Following this precedent, the High Court allowed the appeal, setting aside the order of the ITAT dated September 3, 2018. The appeal was remanded to the ITAT for fresh consideration and disposal. The Tribunal is directed to take note of the Full Bench decision in Mavilayi Service Co-operative Bank Ltd. when reconsidering the matter. The High Court did not decide the merits of the case but rather directed a re-adjudication based on the established Full Bench ruling. No specific amount in dispute was mentioned.

What were the facts?

This appeal is filed by the Principal Commissioner of Income Tax, Thiruvananthapuram, against an order dated September 3, 2018, passed by the Income Tax Appellate Tribunal (ITAT), Cochin Bench, in ITA No. 221/Coch/2018. The respondent is M/s. Kizhuvillam Service Co-operative Bank Ltd. The High Court of Kerala is considering the appeal. The procedural history indicates that the ITAT passed the impugned order, which is now under challenge before the High Court. The High Court notes that the issue involved is covered by a Full Bench decision of the same court.

What were the issues?

1. Whether the issue involved in the appeal is covered by the Full Bench decision of the High Court of Kerala in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax (2019 (2) KHC 287)? Assessee's Contentions: The judgment does not record any specific contentions made by the assessee (M/s. Kizhuvillam Service Co-operative Bank Ltd.). Revenue's Contentions: The judgment does not record any specific contentions made by the revenue (Principal Commissioner of Income Tax). However, the revenue is the appellant, implying they are challenging the ITAT's order. The High Court's decision to follow the Mavilayi Service Co-operative Bank Ltd. judgment suggests the core issue relates to the applicability of that precedent.

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 C.K.ABDUL REHIM & THE HONOURABLE MR. JUSTICE R. NARAYANA PISHARADI FRIDAY, THE 07TH DAY OF JUNE 2019 / 17TH JYAISHTA, 1941 ITA.No. 21 of 2019 (AGAINST THE ORDER DATED 03-09-2018 IN ITA 221/Coch/2018 of I.T.A.TRIBUNAL,COCHIN BENCH) APPELLANT/APPELLANT: THE PRINCIPAL COMMISSIONER OF INCOME TAX THIRUVANANTHAPURAM. BY ADV. SRI.CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT RESPONDENT/RESPONDENT: M/S.KIZHUVILLAM SERVICE CO-OPERATIVE BANK LTD MUDAPURAM P.O, THIRUVANANTHAPURAM, PIN-695001. BY ADVS. SRI.ARJUN RAGHAVAN SRI.T.R.HARIKUMAR THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 07.06.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA No.21/2019 -2- C.K. ABDUL REHIM, J. & R. NARAYANA PISHARADI, J. ------------------------------------------------- I.T.A No. 21 OF 2019 ------------------------------------------------- DATED THIS THE 7th DAY OF JUNE, 2019

J U D G M E N T Abdul Rehim, J: Issue involved in this appeal stands covered through a Full Bench decision of this court in Mavilayi Service Co-operative Bank Ltd. V. Commissioner of Income Tax (2019 (2) KHC 287). Following the said judgment, this court had disposed of I.T.A No.55/2019, through a separate judgment rendered on today by allowing the appeal and by setting aside the order of the Tribunal; and by remanding the appeal to the Tribunal for fresh consideration and disposal, in view of the Full Bench decision.

We are of the considered opinion that same course of action can be adopted in this case also.

Hence, the above appeal is hereby allowed and the impugned order passed by the Income Tax Appellate Tribunal, Cochin Bench in ITA No.221/Coch/2018, dated 03-09-2018 is hereby set aside. The appeal is remanded for fresh consideration -3- and disposal by the Tribunal, on taking note of the decision of the Full Bench of this court in Mavilayi Service Co-operative Bank Ltd. (Supra). C.K.ABDUL REHIM JUDGE R. NARAYANA PISHARADI JUDGE AMG -4-

Appendix — schedule of exhibits

APPENDIX APPELLANT'S ANNEXURES: ANNEXURE A TRUE COPY OF THE ORDER U/S.143(3) OF THE INCOME TAX ACT, 1961 OF THE ASSESSING OFFICER DATED 27/12/2016. ANNEXURE B TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS), TRIVANDRUM DATED 21.03.2018. ANNEXURE C TRUE COPY OF THE ORDER OF THE ITAT IN ITA NO.221/COCH/2018, FOR THE ASST. YEAR 2014-15 DATED 03/09/2018. RESPONDENT'S EXHIBITS NIL AMG

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