MYNAGAPPALLY SERVICE CO-OPERATIVE BANK LTD.NO.Q 69 vs. THE CENTRAL BOARD OF DIRECT TAXES

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WP(C)/5982/2020HC KeralaKLHC01015904202028 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI5 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) (4th respondent) to consider and dispose of the statutory appeal filed by the petitioner at the earliest. The Court also directed that recovery proceedings and collection of tax assessed be kept in abeyance pending the disposal of the appeal. This decision was made by taking note of the Full Bench decision in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287] and the admission by the revenue's Standing Counsel that the facts were substantially similar to a previous Division Bench judgment. No specific amount in dispute was recorded.

What were the facts?

The petitioner, Mynagappally Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala. The petitioner sought directions regarding its pending statutory appeal before the Commissioner of Income Tax (Appeals). The petitioner relied on a previous judgment of a Division Bench in W.A. No. 1536 of 2019 and connected cases, which directed the disposal of appeals and granted a stay on recovery proceedings 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 consider and dispose of the statutory appeal filed by the petitioner at the earliest, considering the Full Bench decision in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287]? (Question of law and fact, concerning procedural directions). Assessee's Contention: The petitioner argued that based on the Division Bench judgment in W.A. No. 1536 of 2019, the Commissioner of Income Tax (Appeals) should be directed to dispose of its appeal and stay recovery proceedings. Revenue's Contention: The revenue, through its Standing Counsel, admitted that the facts were similar to the cited case and agreed that the judgment could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5982 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.5982 OF 2020(W) PETITIONER: MYNAGAPPALLY SERVICE CO-OPERATIVE BANK LTD.NO.Q 69, KUNNATHOOR, KOLLAM-690519, REPRESENTED BY ITS SECRETARY VIJAYAMMA B. BY ADVS. DR.K.P.PRADEEP SMT.T.THASMI RESPONDENTS: 1 THE CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK NEW DELHI-110001, REPRESENTED BY ITS CHAIRMAN. 2 ASST DIRECTOR OF INCOME TAX, CENTRALIZED PROCESSING CENTRE, INCOME TAX DEPARTMENT, BENGALURU, KARNATAKA-560500 3 INCOME TAX OFFICER, WARD 1 AND TPS, KOLLAM, INCOME TAX DEPARTMENT, AAYAKAR BHAVAN, INCOME TAX OFFICE, NEAR KARBALA JUNCTION, RAILWAY STATION ROAD, KOLLAM-691001 4 COMMISSIONER OF INCOME TAX(APPEALS), THIRUVANANTHAPURAM, AAYAKAR BHAVAN, INCOME TAX OFFICE, KOWADIAR, THIRUVANANTHAPURAM-695003

WP(C).No.5982 OF 2020(W) 2 OTHER PRESENT: SRI. CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.5982 OF 2020(W) 3 JUDGMENT Dated this the 28th day of February, 2020 Heard Dr.K.P.Pradeep, the learned counsel for the petitioner and Sri. Christopher Abraham, the learned 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. Hence, the writ petition is disposed of directing the Commissioner of Income Tax (Appeals)/ 4th 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 WP(C).No.5982 OF 2020(W) 4 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 SR

WP(C).No.5982 OF 2020(W) 5

Appendix — schedule of exhibits
APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE RETURN OF INCOME DATED 31.12.2018 FOR THE ASSESSMENT YEAR 2018-19 IN PAN AAGAT3750M EXHIBIT P2 TRUE COPY OF THE INTIMATION AND ASSESSMENT ORDER ISSUED UNDER SECTION 143(1) OF THE INCOME TAX ACT, 1961 WITH NO.AAGAT3750M/2018-19 DATED 07.02.2020 ISSUED FOR THE YEAR 2018-19 BY THE 2ND RESPONDENT EXHIBIT P3 TRUE COPY OF THE APPEAL DATED 22.02.2020 FILED BEFORE THE 4TH RESPONDENT FOR THE ASSESSMENT YEAR 2018-19 EXHIBIT P4 TRUE COPY OF THE DEMAND NOTICE NO.ITBA/RCV/S/221/2019-20/102511847(1) DATED 13.02.2020 FOR THE YEAR 2018-19 ISSUED BY THE 3RD RESPONDENT EXHIBIT P5 TRUE COPY OF THE STAY APPLICATION FILED ON 22.02.2020 BEFORE THE 4TH RESPONDENT IN EXT P3 APPEAL SR //True Copy// PA to Judge

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