KORATTY SERVICE CO-OPERATIVE BANK LIMITED, vs. INCOME TAX OFFICER,

WP(C)/21375/2019HC KeralaKLHC01054760201909 August 2019Bench: HONOURABLE MR.JUSTICE S.V.BHATTI6 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala, following the Division Bench decision in W.A No.1536 of 2019 and connected cases, disposed of the writ petitions. The Court directed 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 be kept in abeyance pending the disposal of these appeals. The reasoning was based on the admission by the revenue that the facts were similar to the precedent case. The Court explicitly relied 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]. No issue was expressly left undecided.

What were the facts?

The petitioners, Koratty Service Co-operative Bank Limited and Kollamkunnu Service Co-operative Bank Limited, filed writ petitions before the High Court of Kerala. They sought a direction for the disposal of their statutory appeals pending before the Commissioner of Income Tax (Appeals) and a stay on recovery proceedings. The petitioners relied on a Division Bench judgment in W.A No.1536 of 2019 and connected cases, which directed disposal of appeals and stay of recovery during the pendency of appeals. The Income Tax Officer and the Commissioner of Income Tax (Appeals) were the respondents. The assessment years and the specific amounts in dispute were not explicitly stated in the provided text.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the pending statutory appeals filed by the petitioners? 2. Whether recovery proceedings and collection of assessed tax should be kept in abeyance pending the disposal of the appeals? Assessee's Contentions: The petitioners contended that a Division Bench of the High Court, in Ext.P5 judgment (W.A No.1536 of 2019 and connected cases), had directed the disposal of appeals and also ordered a stay of recovery during the pendency of such appeals. They argued that this precedent should be followed in their cases. Revenue's Contentions: The learned Standing Counsel for the respondents admitted that the facts of the present cases were substantially the same and similar to those in Ext.P5. Consequently, the revenue conceded that the view taken by the Division Bench in Ext.P5 could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.21375 OF 2019

WP(C).21367/2019

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 FRIDAY, THE 09TH DAY OF AUGUST 2019 / 18TH SRAVANA, 1941 WP(C).No.21375 OF 2019(V) PETITIONER/S: KORATTY SERVICE CO-OPERATIVE BANK LIMITED, KORATTY, THRISSUR- 680308, REPRESENTED BY ITS SECRETARY SRI.SANIL KUMAR N.G. BY ADVS. SRI.K.S.HARIHARAN NAIR SMT.HARIMA HARIHARAN RESPONDENT/S: 1 INCOME TAX OFFICER, WARD 2(2), AAYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, THRISSUR, PIN- 680001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, THRISSUR, PIN- 680001. SC SRI. JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.08.2019, ALONG WITH WP(C).21367/2019(U), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).Nos.21375 & 21367 OF 2019 -2- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI FRIDAY, THE 09TH DAY OF AUGUST 2019 / 18TH SRAVANA, 1941 WP(C).No.21367 OF 2019(U) PETITIONER/S: KOLLAMKUNNU SERVICE CO-OPERATIVE BANK LIMITED NO.R 314, KALLAMKUNNU, P.O. NADAVARAMBA, THRISSUR-680 661, REPRESENTED BY ITS SECRETARY SRI. GANESH C.K., BY ADVS. SRI.K.S.HARIHARAN NAIR SMT.HARIMA HARIHARAN RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 2 (2), AYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, THRISSUR-PIN-680 001 2 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, THRISSUR, PIN-680 001 SC SRI. JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.08.2019, ALONG WITH WP(C).21375/2019(V), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).Nos.21375 & 21367 OF 2019 -3- JUDGMENT [ WP(C).21375/2019, WP(C).21367/2019 ] Heard Sri. K.S Hariharan Nair, 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 in W.A No.1536 of 2019 and connected cases dated 01.07.2019 to contend that the Division Bench directed disposal of appeals and also stay of recovery during the pendency of the appeals. 3. The learned Standing Counsel admits that the facts of the case are substantially same and similar, the view taken by the Division Bench in Ext.P5 can be followed. The writ petitions are disposed of directing the Commissioner of Income Tax (Appeals)/ 2nd respondent to consider and dispose of the subject statutory appeals filed by the petitioners herein at the earliest taking note of the Full

WP(C).Nos.21375 & 21367 OF 2019 -4- 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 of such appeals. Sd/- S.V.BHATTI JUDGE JS

WP(C).Nos.21375 & 21367 OF 2019 -5- APPENDIX OF WP(C) 21375/2019 PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER DATED 23.11.2018 ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2016-17. EXHIBIT P2 COPY OF APPEAL MEMORANDUM DATED 11.01.2019 AGAINST EXT.P1. EXHIBIT P3 COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 11.01.2019. EXHIBIT P4 COPY OF STAY ORDER ISSUED BY THE 2ND RESPONDENT DATED 17.07.2019. EXHIBIT P5 COPY OF JUDGMENT OF DIVISION BENCH OF THIS HON'BLE HIGH COURT OF W.A.NO.1536 OF 2019 PASSED ON 01.07.2019. RESPONDENTS'S/S EXHIBITS: NIL

WP(C).Nos.21375 & 21367 OF 2019 -6- APPENDIX OF WP(C) 21367/2019 PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER DATED 26.11.2018 ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2016-17. EXHIBIT P2 COPY OF APPEAL MEMORANDUM DATED 12.01.2019 AGAINST EXT. P1. EXHIBIT P3 COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 12.01.2019. EXHIBIT P4 COPY OF STAY ORDER ISSUED BY THE 2ND RESPONDENT DATED 17.07.2019. EXHIBIT P5 COPY OF JUDGMENT OF DIVISION BENCH OF THIS HON'BLE COURT IN W.A. NO. 1536 OF 2019 PASSED ON 01.07.2019. RESPONDENTS'S/S EXHIBITS: NIL

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