THE ALANALLUR SERVICE CO-OPERATIVE BANK LTD vs. THE INCOME TAX OFFICER

WP(C)/20995/2019HC KeralaKLHC01053709201919 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 by directing the Commissioner of Income Tax (Appeals) to consider and dispose of the statutory appeals filed by the petitioners at the earliest. The Court also ordered that recovery proceedings and the collection of assessed tax should be kept in abeyance pending the disposal of these appeals. This decision was based on 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 the precedent set by a Division Bench judgment in W.A. No. 1529 of 2019 and connected cases, which the parties agreed was applicable due to similar facts. The Court did not decide the merits of the appeals themselves, but rather directed the procedural steps for their disposal and the interim relief regarding recovery.

What were the facts?

The petitioners, The Kalladikode Service Co-operative Bank Ltd. and The Alanallur Service Co-operative Bank Ltd., have filed these writ petitions. They are challenging orders or actions by the Income Tax Officer and the Commissioner of Income Tax (Appeals). The specific assessment years are not mentioned. The petitioners rely on a Division Bench judgment dated July 1, 2019, in W.A. No. 1529 of 2019 and connected cases, which directed the disposal of appeals and granted a stay of recovery pending appeal. The Standing Counsel for the respondents admits that the facts in these cases are substantially similar to those considered by the Division Bench in the cited judgment.

What were the issues?

1. Whether the recovery proceedings and collection of assessed tax should be kept in abeyance pending the disposal of statutory appeals filed by the petitioners? Assessee's Contentions: The petitioners contend that a Division Bench of this Court, in Ext.P5 judgment dated July 1, 2019, in W.A. No. 1529 of 2019 and connected cases, directed the disposal of appeals and granted a stay of recovery during the pendency of such appeals. They argue that this precedent should be followed. Revenue's Contentions: The learned Standing Counsel for the respondents admits that the facts of the present cases are substantially the same as those considered by the Division Bench in Ext.P5, and therefore, the judgment in Ext.P5 can be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.21015 OF 2019

WP(C).20995/2019

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.21015 OF 2019(B) PETITIONER/S: THE KALLADIKODE SERVICE CO-OPERATIVE BANK LTD NO. P 7489, KALLADIKKODE, PALAKKAD - 678596, REPRESENTED BY ITS SECRETARY, BINOY JOSEPH, AGED 43, S/O. JOSEPH BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 4, AYAKAR BHAVAN, PALAKKAD - 678014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) SAKTHAN NAGAR, THRISSUR - 680 001. SC SRI. JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.08.2019, ALONG WITH WP(C).20995/2019(Y), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

-2- WP(C) NO.21015 & 20995 OF 2019 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.20995 OF 2019(Y) PETITIONER/S: THE ALANALLUR SERVICE CO-OPERATIVE BANK LTD NO.F 1178, ALANALLUR, MANNARKKAD, PALAKKAD-678 601, REPRESENTED BY ITS SECRETARY, SREENIVASAN P., AGED 47, S/O. SANKARAN. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 4, AYAKAR BHAVAN, PALAKKAD-678 014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) SAKTHAN NAGAR, THRISSUR-680 001. SC SRI. JOSE JOSEPH

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.08.2019, ALONG WITH WP(C).21015/2019(B), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

-3- WP(C) NO.21015 & 20995 OF 2019

JUDGMENT Heard Sri. Harisankar V.Menon, the learned counsel for the petitioners and Sri. Jose Joseph, the learned Standing Counsel for respondents. 2. Petitioners refer to and rely on Ext.P5 judgment dated 01.07.2019 in W.A No.1529 of 2019 and connected cases to contend that the Division Bench directed disposal of appeals and granted stay of recovery during the pendency of the appeals. 3. The learned Standing Counsel admits that the facts of these cases are substantially same and similar to the facts noted by the Division Bench in Ext.P5, hence the judgment in Ext.P5 can be followed. Hence, the writ petitions are disposed of directing the Commissioner of Income Tax (Appeals)/ 2nd respondent to

-4- WP(C) NO.21015 & 20995 OF 2019 consider and dispose of the statutory appeals filed by the petitioners herein at the 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 appeals.

Sd/- S.V.BHATTI JUDGE JS

-5- WP(C) NO.21015 & 20995 OF 2019 APPENDIX OF WP(C) 21015/2019 PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2016-17. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2016-17. EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2016-17. EXHIBIT P4 COPY OF ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2016-17. EXHIBIT P5 COPY OF JUDGMENT IN WA NO.1529/2019 OF THIS HON'BLE COURT.

EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE IST RESPONDENT FOR THE YEAR 2016-17 DATED 26.12.2018. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2016-17 DATED 18.1.2019. EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2016-17 DATED 16.1.2019. EXHIBIT P4 COPY OF ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2016-17 DATED 16.7.2019. EXHIBIT P5 COPY OF JUDGMENT IN WA NO.1529/2019 OF THIS HON'BLE COURT DATED 1.7.2019.

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