AMBALLUR SERVICE CO-OPERATIVE BANK LTD.NO.503 vs. THE COMMISSIONER OF INCOME TAX(APPEALS)

WP(C)/14282/2021HC KeralaKLHC01038197202119 July 2021Author: HONOURABLE MR. JUSTICE A.M.BADAR5 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition with a direction to the 1st respondent (Commissioner of Income Tax (Appeals)) to decide the statutory appeal filed by the petitioner at the earliest, in accordance with law. Until the disposal of the appeal, the respondents were directed to keep in abeyance the recovery and collection of the tax assessed as per the assessment order. This decision was made considering the law laid down by the Division Bench of the High Court in W.A. Nos.1529, 1530, 1535 & 1536 of 2019 on July 1, 2019. The specific issue of the correctness of the assessment order itself, or the grounds for stay, were not decided on merits by the High Court, but the procedural aspect of expediting the appeal and staying recovery was addressed.

What were the facts?

The petitioner, The Ambullur Service Co-operative Bank Ltd., a Primary Agricultural Credit Society, was assessed for the Assessment Year 2018-2019. The petitioner contended that the assessment was contrary to the law laid down by the Supreme Court in The Mavilayi Service Co-operative Bank Ltd. Vs Commissioner of Income Tax, Calicut. The petitioner filed an appeal along with a stay petition before the 1st respondent, the Commissioner of Income Tax (Appeals). However, no order was passed on the stay petition, and the petitioner was informed that stay would be considered only upon payment of 20% of the demanded tax.

What were the issues?

1. Whether the petitioner's appeal and stay petition should be considered by the 1st respondent in light of the Supreme Court's decision in The Mavilayi Service Co-operative Bank Ltd. case. Assessee's Contention: The assessment is contrary to the law laid down by the Hon'ble Supreme Court in the matter of The Mavilayi Service Co-operative Bank Ltd. Vs Commissioner of Income Tax, Calicut. The petitioner seeks disposal of the petition in terms of the judgment of the Division Bench of the High Court in W.A.No.1536/2019. Revenue's Contention: The learned counsel for the respondents fairly stated that the petition can be disposed of in the light of the judgment of the learned Division Bench of this Court in Ext.P8.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C) NO. 14282 OF 2021

W.A.No.1536/2019

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

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.M.BADAR MONDAY, THE 19TH DAY OF JULY 2021 / 28TH ASHADHA, 1943 WP(C) NO. 14282 OF 2021 PETITIONER: THE AMBALLUR SERVICE CO-OPERATIVE BANK LTD. NO. 503, MANNAMPETTA, P.O. VARAKKARA, ALAGAPPANAGAR, THRISSUR-680 302, REPRESENTED BY ITS SECRETARY. BY ADVS. P.C.SASIDHARAN K.S.ANIL RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, DELHI-110001. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, O/O THE PRINCIPAL COMMISSIONER OF INCOME TAX, AYAKAR BHAVAN, MANACHIRA, KOZHIKODE, KERALA-673 001. 3 THE INCOME TAX OPFFICER, WARD 2(1), THRISSUR, OFFICE OF THE INCOME TAX OFFICER, THRISSUR. R1-3 BY SRI.JOSE JOSEPH,STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.07.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.14282 OF 2021 2 JUDGMENT Dated this the 19th day of July 2021 The learned Standing Counsel takes notice for all respondents. Heard both sides. 2. The petitioner is a Primary Agricultural Credit Society. The petitioner was assessed for the year 2018-2019. It is the case of the petitioner that the assessment is contrary to the law laid down by the Hon'ble Supreme Court in the matter of The Mavilayi Service Co-operative Bank Ltd. Vs Commissioner of Income Tax, Calicut reported in 2021 (1) KHC 303 (SC). The petitioner prefer an appeal along with the stay petition before the 1st respondent. However, no orders are passed on the stay petition, as it is informed to the petitioner that the request of stay can be considered on payment of 20% of the tax WP(C).No.14282 OF 2021 3 demanded. 3. The learned counsel for the petitioner submitted that the petition be disposed of in terms of judgment of the learned Division Bench of this Court in W.A.No.1536/2019. 4. The learned counsel appearing for the respondents fairly state that the petition can be disposed of in the light of the judgment of the learned Division Bench of this Court in Ext.P8. In this view of the matter, considering the law laid down by this Court while deciding W.A. Nos.1529, 1530, 1535 & 1536 of 2019 on 1st July, 2019, Ext.P8, the petition is disposed of with a direction to the 1st respondent to decide the statutory appeal filed by the petitioner herein at the earliest according to law and till disposal of the appeal, the respondents shall keep in abeyance the recovery and WP(C).No.14282 OF 2021 4 collection of the tax assessed as per the

assessment order. A.M.BADAR JUDGE SSK/19/07

WP(C).No.14282 OF 2021 5 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER DATED 18-01-2021. EXHIBIT P2OF THE DEMAND NOTICE DATED 18-01-2021. EXHIBIT P3P OF THE APPEAL DATED 10-02-2021. EXHIBIT P4OF THE ACKNOWLEDGMENT OF RECEIPT OF FORM SHOWING THE DATE OF FILING AS 10/02/2021. EXHIBIT P5OF THE ORDER DATED 22-06-2021. EXHIBIT P6OF THE SAY PETITION DATED 06-07-2021. EXHIBIT P7OF THE JUDGMENT DATED 12-03-2020 IN W.P.(C) 7600 OF 2020. EXHIBIT P8OF THE JUDGMENT DATED 01-07-2019 IN W.A. 1536 OF 2019. RESPONDENT'S EXHIBITS:NIL SSK //// PA TO JUDGE

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