MUNDELA SERVICE CO-OPERATIVE BANK LTD vs. THE CENTRAL BOARD OF DIRECT TAXES

WP(C)/16631/2023HC KeralaKLHC01036137202325 May 2023Author: HONOURABLE MR.JUSTICE C.S.DIAS5 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court directed the third respondent, the Commissioner of Income Tax (Appeals), or any other competent authority, to consider and dispose of the appeal (Ext.P5) in accordance with law and as expeditiously as possible, within six months from the date of receipt of a certified copy of the judgment. Furthermore, the Court ordered that recovery proceedings pursuant to the assessment order (Ext.P4) shall be kept in abeyance until orders are passed on the appeal. The Court did not decide on the merits of the assessment order or the grounds of appeal, focusing solely on the procedural aspect of timely disposal.

What were the facts?

The petitioner, Mundela Service Co-operative Bank Ltd., a Primary Agricultural Credit Society, filed a writ petition seeking a direction to the third respondent, the Commissioner of Income Tax (Appeals), to dispose of their appeal (Ext.P5) within a stipulated time. The petitioner had filed this appeal on January 21, 2023, against an assessment order (Ext.P4) passed by the second respondent, the Additional Commissioner of Income Tax. The petitioner contended that the assessment order was passed in violation of the law laid down by the Supreme Court in Mavilayi Service Cooperative Bank Ltd. v. Commissioner of Income Tax. The appeal has been pending since January 20, 2023.

What were the issues?

1. Whether the third respondent (Commissioner of Income Tax (Appeals)) should be directed to consider and dispose of the pending appeal (Ext.P5) filed by the petitioner within a specified time frame. The petitioner argued that their appeal against the assessment order (Ext.P4) has been pending since January 20, 2023, and sought a direction for its expeditious disposal. They also contended that the assessment order itself was passed in violation of the Supreme Court's decision in Mavilayi Service Cooperative Bank Ltd. v. Commissioner of Income Tax. The revenue, represented by its counsel, did not present any specific arguments against the prayer for expeditious disposal of the appeal, as recorded in the judgment.

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.S.DIAS THURSDAY, THE 25TH DAY OF MAY 2023 / 4TH JYAISHTA, 1945 WP(C) NO. 16631 OF 2023 PETITIONER: 1 MUNDELA SERVICE CO-OPERATIVE BANK LTD MUNDELA P.O, VELLANAD THIRUVANANTHAPURAM PIN - 695543 REPRESENTED BY ITS SECRETARY RAHUL P.S, AGED 31 YEARS BY ADVS. K.P.PRADEEP HAREESH M.R. SANAND RAMAKRISHNAN T.T.BIJU T.THASMI M.J.ANOOPA RESPONDENTS: 1 THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE, MINISTRY OF FINANCE GOVERNMENT OF INDIA, NORTH BLOCK NEW DELHI, PIN - 110001, REPRESENTED BY ITS CHAIRMAN 2 ADDITIONAL COMMISSIONER OF INCOME TAX ASSESSMENT UNIT,INCOME TAX DEPARTMENT NATIONAL FACELESS ASSESSMENT CENTRE, DELHI ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI, PIN - 110003 3 COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE (NFAC), DELHI, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI, PIN - 110003 BY ADV SRI. CHRISTOPHER ABRAHAM, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.05.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.16631 of 2023 2 JUDGMENT Dated this the 25th day of May, 2023 The writ petition is filed to direct the third respondent or such other appropriate authority under him, to consider and dispose of Ext.P5 appeal within a time period. 2. The petitioner’s case is that, they are Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. Ext.P4 assessment order has been passed by the second respondent, against which the petitioner has preferred Ext.P5 appeal on 21.01.2023. Ext.P4 assessment order is passed in violation of the law laid down by the Hon'ble Supreme Court in Mavilayi Service Cooperative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485. The petitioner prays that the third respondent or any other competent WPC No.16631 of 2023 3 authority may be directed to consider and dispose of the appeal within a time period. Hence, the writ petition. 3. Heard; Sri.K.P. Pradeep, the learned counsel appearing for the petitioner and Sri.Christopher Abraham, the learned counsel appearing for the respondents. Having considered the pleadings and materials on record and taking note of the fact that Ext.P5 appeal is pending consideration before the third respondent since 20.01.2023, I deem it appropriate to dispose of the writ petition in the following manner: (i) The third respondent or such other competent authority shall consider Ext.P5 appeal and dispose of the same, in accordance with law and as expeditiously as possible, at any rate, within six months from the date of receipt of a

certified copy of this judgment. (ii) The recovery proceedings pursuant to Ext.P4 assessment order shall be kept in abeyance until orders are passed on Ext.P5 appeal. C. S. DIAS JUDGE SKP/25-05 APPENDIX OF WP(C) 16631/2023 PETITIONER’S EXHIBITS: EXHIBIT P1OF THE INCOME TAX RETURN ACKNOWLEDGMENT DATED 09-02-2022 FILED UNDER SECTION 139 OF THE INCOME TAX ACT, FOR THE ASSESSMENT YEAR 2021-22 EXHIBIT P2OF THE REPLY DATED 26-10-2022 SUBMITTED BY THE ASSESSES BEFORE THE 2ND RESPONDENT EXHIBIT P3OF THE REPLY DATED 07-12-2022 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT P4OF THE ASSESSMENT ORDER NO ITBA/AST/S/143(3)/2022-23/1048118451(1) ISSUED FOR THE YEAR 2021-22 BY THE 2ND RESPONDENT EXHIBIT P5OF THE APPEAL IN EXT P4 ORDER, DATED 20-01-2023 FILED FOR THE YEAR 2021-22 BEFORE THE 3RD RESPONDENT BY THE PETITIONER EXHIBIT P6OF THE ORDER DATED 20-04-2023 IN CIVIL APPEAL NO.8719 OF 2022 EXHIBIT P7OF THE JUDGMENT DATED 28-06-2021 IN WA NO.753 OF 2021 EXHIBIT P8OF THE JUDGMENT DATED 23-02-2022 IN WPC NO 6109 OF 2022 RESPONDENTS' EXHIBITS:NILP.A.TO JUDGE

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