Kuthuparamba Service Co-operative Bank Ltd vs. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL E-ASSESS

WP(C)/13334/2023HC KeralaKLHC01029099202312 April 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI3 pages
AI SummaryRemanded

What were the facts?

The petitioner, Kuthuparamba Service Co-operative Bank Ltd., filed a writ petition challenging an assessment order (Ext.P5). The petitioner contended that the assessment order was passed without considering their case in light of the Supreme Court's decision in Mavilayi Service Co-operative Bank Ltd. v CIT. They also cited a subsequent Division Bench judgment of the Kerala High Court in W.A.No.753/2021 concerning Poonjar Service Co-operative Bank Limited, which held that assessing authorities must consider and apply Supreme Court declarations of law. The respondents are the Additional/Joint/Deputy/Assistant Commissioner of Income Tax and the Principal Commissioner of Income Tax.

What did the High Court hold?

The High Court allowed the writ petition and set aside the assessment order (Ext.P5). The Court found no reason to deviate from the established principle that Supreme Court judgments must be considered and applied by assessing authorities. The Court relied on the Supreme Court's decision in Mavilayi Service Co-operative Bank Ltd. v CIT and a subsequent Division Bench judgment of the Kerala High Court. The respondents were directed to reconsider the case and pass a fresh assessment order, ensuring that all relevant judgments of the Supreme Court and the High Court are taken into account. No specific issue was left undecided; the entire assessment order was quashed and remanded for fresh consideration.

What were the issues?

1. Whether the assessment order (Ext.P5) is liable to be set aside for failing to consider the petitioner's case in light of the Supreme Court's decision in Mavilayi Service Co-operative Bank Ltd. v CIT? (Question of law and fact, relying on principles of natural justice and judicial precedent). Assessee's Contention: The assessment order is invalid because it was passed without considering the binding precedent set by the Supreme Court in Mavilayi Service Co-operative Bank Ltd. v CIT. Furthermore, a subsequent Division Bench judgment of the Kerala High Court in W.A.No.753/2021 reinforced this by holding that assessing authorities are obligated to consider and apply Supreme Court pronouncements. Revenue's Contention: The judgment does not record any specific arguments made by the revenue.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI WEDNE AY, THE 12TH DAY OF APRIL 2023 / 22ND CHAITHRA, 1945 WP(C) NO. 13334 OF 2023 PETITIONER: KUTHUPARAMBA SERVICE CO-OPERATIVE BANK LTD KUTHUPARAMBA, KANNUR, PIN - 670643 REPRESENTED BY ITS SECRETARY M. BEENA BY ADVS. S.ARUN RAJ C.T.SUJA ARJUN S.RAJ RESPONDENTS: 1 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, ASSESSMENT UNIT, NATIONAL E-ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, 2ND FLOOR, E- RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI, PIN - 110003 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, KOZHIKODE, PIN - 673001 BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA SRI. CHRISTOPHER ABRAHAM, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.04.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 13334 OF 2023 2 T.R. RAVI, J. -------------------------------------------- W. P. (C). No.13334 of 2023 ----------------------------

The order continues below.

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