THE POYYA SERVICE CO-OPERATIVE SOCIETY LTD. NO. 812 vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/6101/2020HC KeralaKLHC01016245202028 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition by directing the Commissioner of Income Tax (Appeals) to consider and dispose of the statutory appeal filed by the petitioner at the earliest. The Court specifically directed the Commissioner 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 the appeal. The High Court did not decide the merits of the appeal itself but facilitated its expeditious disposal and provided interim relief.

What were the facts?

The petitioner, The Poyya Service Co-operative Society Ltd. No. 812, represented by its Secretary, filed a writ petition before the High Court of Kerala. The petitioner sought directions regarding their pending statutory appeal before the Commissioner of Income Tax (Appeals). The petitioner relied on a Division Bench judgment dated July 1, 2019, in W.A. No. 1536 of 2019 and connected cases, which directed the disposal of appeals and granted a stay of recovery proceedings during the pendency of the appeals. The Standing Counsel for the respondents (Commissioner of Income Tax (Appeals) and Income Tax Officer) admitted that the facts of the present case were substantially similar to those considered by the Division Bench in the cited writ appeal.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the statutory appeal filed by the petitioner at the earliest, considering the facts and circumstances of the case and relevant precedents? (Question of law and fact, turning on principles of natural justice and administrative efficiency). 2. Whether recovery proceedings and collection of assessed tax should be kept in abeyance pending the disposal of the petitioner's statutory appeal? (Question of law and fact, turning on the powers of the appellate authority and the High Court in writ jurisdiction). 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 granted a stay of recovery proceedings during the pendency of the appeal. They implicitly argued that similar relief should be granted in their case. Revenue's Contentions: The Standing Counsel for the revenue admitted that the facts of the case were substantially the same as those in W.A. No. 1536 of 2019 and that the judgment could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.6101 OF 2020

W.A No.1536 of 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 28TH DAY OF FEBRUARY 2020 / 9TH PHALGUNA, 1941 WP(C).No.6101 OF 2020(K) PETITIONER/S: THE POYYA SERVICE CO-OPERATIVE SOCIETY LTD. NO. 812 POOPPATHY P.O., POOPPATHY, (VIA) MALA, 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 INCOME TAX OFFICER, WARD 2(4), SHAKTAN NAGAR, THRISSUR, PIN-680 001. OTHER PRESENT: SC - JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

-2- J U D G M E N T Dated this the 28th day of February 2020 Heard Advocate O.D.Sivadas for petitioner and Advocate Jose Joseph, Standing Counsel for respondents.

Petitioner refers to and relies on judgment dated 01.07.2019 in W.A No.1536 of 2019 and connected cases to contend that the Division Bench directed disposal of appeal and granted stay of recovery proceedings during the pendency of the appeal.

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.

-3- Hence, the writ petition is disposed of directing the Commissioner of Income Tax (Appeals)/1st respondent to consider and dispose of the statutory appeal filed by the petitioner 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 appeal. S.V.BHATTI JUDGE jjj -4-

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 01.11.2017 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2010-11. EXHIBIT P2 COPY OF THE APPEAL DATED 16.12.2017 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2010-11. EXHIBIT P3 COPY OF THE ORDER PROCEEDING DATED 10.02.2020 ISSUED BY THE 2ND RESPONDENT.

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