THE KALLAMKUNNU SERVICE CO-OPERATIVE BANK LIMITED NO R.314, vs. THE COMMISSIONER OF INCOME TAX(APPEALS)

WP(C)/18513/2019HC KeralaKLHC01047389201919 August 2019Bench: HONOURABLE MR.JUSTICE S.V.BHATTI6 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petitions. It directed the Commissioner of Income Tax (Appeals) to consider and dispose of the statutory appeals filed by the petitioner at the earliest. In doing so, the Commissioner was directed to take note of the Full Bench decision reported in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287]. Furthermore, the Court ordered that recovery proceedings and the collection of assessed tax should be kept in abeyance pending the disposal of these appeals. The Court did not decide on the merits of the underlying tax dispute but provided procedural and interim relief based on the admitted similarity of facts to a previous binding precedent.

What were the facts?

The petitioner, The Kallamkunnu Service Co-operative Bank Limited, represented by its Secretary, filed two writ petitions (Civil) before the High Court of Kerala. These petitions challenged actions taken by the Income Tax Department, specifically the Commissioner of Income Tax (Appeals), the Principal Commissioner of Income Tax, and the Income Tax Officer. The petitioner sought relief based on a prior Division Bench judgment in W.A. No. 1536 of 2019 and connected cases, which directed the disposal of appeals and stayed recovery proceedings during the pendency of appeals. The revenue's counsel admitted that the facts in the present cases were substantially similar to those in the cited judgment.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to dispose of the petitioner's statutory appeals at the earliest, considering the facts and circumstances of the case? (Question of procedure and administrative direction). 2. Whether recovery proceedings and collection of assessed tax should be kept in abeyance pending the disposal of the petitioner's appeals? (Question of interim relief). Assessee's Contentions: The petitioner relied on the judgment in W.A. No. 1536 of 2019 and connected cases, which directed the disposal of appeals and stay of recovery proceedings during the pendency of appeals. The petitioner sought similar directions. Revenue's Contentions: The learned Standing Counsel for the revenue admitted that the facts of the case were substantially the same as those noted by the Division Bench in W.A. No. 1536 of 2019 and agreed that the said judgment could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.18538 OF 2019

WP(C).18513/2019

Read from the judgment's own cause title. This page is filed under one of them.

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI MONDAY, THE 19TH DAY OF AUGUST 2019 / 28TH SRAVANA, 1941 WP(C).No.18538 OF 2019(N) PETITIONER/S: THE KALLAMKUNNU SERVICE CO-OPERATIVE BANK LIMITED NO. R.314, P.O. NADAVARAMBA, THRISSUR DISTRICT, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX(APPEALS) AYAKAR BHAVAN, SHAKTHAN NAGAR, THRISSUR, PIN-680001. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, SHAKTAN NAGAR, THRISSUR, PIN-680001. 3 THE INCOME TAX OFFICER, WARD (2), SHAKTAN NAGAR, THRISSUR, PIN-680001. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.08.2019, ALONG WITH WP(C).18513/2019(L), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

W.P.(C) Nos. 18513 & 18538/2019 -2- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI MONDAY, THE 19TH DAY OF AUGUST 2019 / 28TH SRAVANA, 1941 WP(C).No.18513 OF 2019(L) PETITIONER/S: THE KALLAMKUNNU SERVICE CO-OPERATIVE BANK LIMITED NO R.314, P.O.NADAVARAMBA, THRISSUR DISTRICT ,REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX(APPEALS) AYAKAR BHAVAN, SHAKTAN NAGAR, THRISSUR, PIN-680 001. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, SHAKTAN NAGAR, THRISSUR, PIN-680 001. 3 THE INCOME TAX OFFICER, WARD (2), SHAKTAN NAGAR, THRISSUR, PIN-680 001. R1-3 BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.08.2019, ALONG WITH WP(C).18538/2019(N), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

W.P.(C) Nos. 18513 & 18538/2019 -3- J U D G M E N T [ WP(C).18538/2019, WP(C).18513/2019 ] Dated this the 19th day of August 2019 Heard Smt. Sameera holding for Sri. O.D.Sivadas, the learned counsel for the petitioner and Sri. Jose Joseph, the learned Standing Counsel for respondents. 2. Petitioner refers to and relies on judgment in W.A No.1536 of 2019 and connected cases dated 01.07.2019 to contend that the Division Bench directed disposal of appeal and also stay of recovery proceedings during the pendency of the appeal. 3. The learned Standing Counsel admits that the facts of the case are substantially same and similar to the facts noted by the Division Bench in W.A. No.1536 of 2019, hence can be followed. The writ petition is disposed of directing the Commissioner of Income Tax (Appeals)/ first respondent to consider and dispose of the subject statutory appeals filed by the petitioner herein at the

W.P.(C) Nos. 18513 & 18538/2019 -4- earliest taking note of the Full Bench decision reported in The Mavilayi Service Co-operative Bank Ltd, v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287] and to keep in abeyance recovery proceedings and collection of tax assessed, pending disposal of such appeal. Sd/- S.V.BHATTI JUDGE jjj

W.P.(C) Nos. 18513 & 18538/2019 -5- APPENDIX OF WP(C) 18538/2019 PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 22.12.2016 ISSUED BY THE 3RD RESPONDENT FOR THE PERIOD 2014- 15. EXHIBIT P2 COPY OF THE APPEAL DATED 28.01.2017 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2014-15. EXHIBIT P3 COPY OF THE STAY PETITION DATED 27.02.2017 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. EXHIBIT P4 COPY OF THE ORDER DATED 09.03.2017 ISSUED BY THE 3RD RESPONDENT. EXHIBIT P5 COPY OF THE REVIEW PETITION DATED 20.03.2017 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P6 COPY OF THE ORDER DATED 24.06.2019 ISSUED BY THE 2ND RESPONDENT.

W.P.(C) Nos. 18513 & 18538/2019 -6- APPENDIX OF WP(C) 18513/2019 PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 22.12.2016 ISSUED BY THE 3RD RESPONDENT FOR THE PERIOD 2009- 10 EXHIBIT P2 COPY OF THE APPEAL DATED 28.1.2017 FILED BY THE PETITIONER BEFORE THE 1SDT RESPONDENT FOR THE PERIOD 2009-10 EXHIBIT P3 COPY OF THE STAY PETITION DATED 27.2.2017 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT EXHIBIT P4 COPY OF THE ORDER DATED 9.3.2017 ISSUED BY THE 3RD RESPONDENT EXHIBIT P5 COPY OF THE REVIEW PETITION DATED 20.3.2017 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT P6 COPY OF THE ORDER DATED 24.6.2019 ISSUED BY THE 2ND RESPONDENT

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