ULLOOR SERVICE CO-OPERATIVE BANK LTD.NO.1230, vs. THE INCOME TAX OFFICER,

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WP(C)/6071/2020HC KeralaKLHC01016037202028 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 also directed that recovery proceedings and the collection of assessed tax be kept in abeyance pending the disposal of the appeal. This decision was made 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 acknowledging the similarity of facts with the Division Bench judgment in W.A. No. 1536 of 2019. The Court's reasoning was based on the precedent set by the Division Bench and the Full Bench, aiming for an expeditious resolution of the appeal and preventing coercive recovery measures during that period.

What were the facts?

The petitioner, Ulloor Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala. The petitioner sought a direction for the disposal of its statutory appeal pending before the Commissioner of Income Tax (Appeals) and a stay on recovery proceedings. The petitioner relied on a previous Division Bench judgment in W.A. No. 1536 of 2019, which directed the disposal of appeals and granted a stay on recovery during the pendency of appeals. The Standing Counsel for the revenue acknowledged that the facts of the present case were substantially similar to those in the cited Division Bench judgment.

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. (Question of procedure) 2. Whether recovery proceedings and collection of assessed tax should be kept in abeyance pending the disposal of the appeal. (Question of procedure) Assessee's Contentions: The petitioner relied on the judgment dated 01.07.2019 in W.A. No. 1536 of 2019 and connected cases, arguing that the Division Bench directed the disposal of appeals and granted a stay of recovery proceedings during the pendency of the appeal. Revenue's Contentions: The Standing Counsel for the revenue admitted that the facts of the case were substantially the same and similar to the facts noted by the Division Bench in W.A. No. 1536 of 2019, and therefore, the said judgment could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.6071 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.6071 OF 2020(H) PETITIONER/S: ULLOOR SERVICE CO-OPERATIVE BANK LTD.NO.1230, REPRESENTED BY ITS SECRETARY, MEDICAL COLLEGE.P.O., THIRUVANANTHAPURAM DISTRICT-695011. BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD-2(1), OFFICE OF THE INCOME TAX OFFICER, AAYAKAR BHAVAN, KAWDIAR.P.O., THIRUVANANTHAPURAM, PIN-695003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, PIN-695003. OTHER PRESENT: SC - SRI. CHRISTOPHER ABRAHAM 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 T.R.Harikumar for petitioner and Advocate Christopher Abraham, Standing Counsel for respondents.

2.

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.

3.

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)/ 2nd 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 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2017-18 DATED 19.12.2019. EXHIBIT P2 A TRUE COPY OF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 19.12.2019. EXHIBIT P3 A TRUE COPY OF THE ONLINE APPEAL DATED 31.12.2019 ALONG WITH GROUNDS OF APPEAL, FILED BEFORE THE 2ND RESPONDENT, AGAINST EXT.P1 ASSESSMENT ORDER. EXHIBIT P4 A TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER IN EXT.P3 APPEAL SUBMITTED ON 6.1.2020. EXHIBIT P5 A TRUE COPY OF THE COMMUNICATION NO.ITBA/COM/F/17/2019-20/1024502947(1) DATED 31.1.2020, ISSUED BY THE 1ST RESPONDENT. EXHIBIT P6 A TRUE COPY OF THE JUDGMENT DATED 19.7.2019 IN W.A.NO.1639 OF 2019. EXHIBIT P7 A TRUE COPY OF THE JUDGMENT DATED 17.2.2020 IN WPC.NO.4433 OF 2020.

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