PARAPPUR AGRICULTURAL IMPROVEMENT CO-OPERATIVE SOCIETY LTD.M.943 vs. THE CENTRAL BOARD OF DIRECT TAXES

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WP(C)/6032/2020HC KeralaKLHC01015927202028 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala 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 tax assessed should be kept in abeyance pending the disposal of the appeal. This decision was based on 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 that the facts were similar to a previous Division Bench judgment (W.A. No. 1536 of 2019) which had granted similar relief. The ratio decidendi is that when facts are similar to a precedent and the revenue does not contest, statutory appeals should be expedited, and recovery should be stayed to avoid prejudice to the assessee.

What were the facts?

The petitioner, Parappur Agricultural Improvement Co-operative Society 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). 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 proceedings during the pendency of the appeal. The respondents, including the Central Board of Direct Taxes and the Income Tax Officer, were represented by their Standing Counsel. The Standing Counsel admitted 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 statutory appeal filed by the petitioner should be disposed of expeditiously by the Commissioner of Income Tax (Appeals)? (Question of procedure) 2. Whether recovery proceedings and collection of tax assessed should be kept in abeyance pending the disposal of the statutory appeal? (Question of mixed law and fact, concerning the powers of the appellate authority and the principles of natural justice). Assessee's Contentions: The petitioner contended that the Division Bench in W.A. No. 1536 of 2019 had directed the disposal of appeals and granted a stay on recovery proceedings during the pendency of the appeal. They argued that the present case had substantially similar facts and should be treated accordingly. Revenue's Contentions: The learned Standing Counsel for the respondents admitted that the facts of the case were substantially the same as those in W.A. No. 1536 of 2019 and that the said judgment could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.6032 OF 2020
W.A No.1536 of 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 S.V.BHATTI FRIDAY, THE 28TH DAY OF FEBRUARY 2020 / 9TH PHALGUNA, 1941 WP(C).No.6032 OF 2020(D) PETITIONER: PARAPPUR AGRICULTURAL IMPROVEMENT CO-OPERATIVE SOCIETY LTD.M.943 EDARIKODE, EDARIKODE POST, MALAPPURAM-676501, REPRESENTED BY ITS PRESIDENT MOOSAKUTTY.T 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 INCOME TAX OFFICER, WARD 3, TIRUR, INCOME TAX DEPARTMENT, INCOME TAX OFFICE, NO.20/1240, TARIFF BAZAR, TOWN HALL ROAD, TIRUR-676101. 3 COMMISSIONER CF INCOME TAX(APPEALS) KOZHIKODE, AAYAKAR BHAVAN, INCOME TAX OFFICE, MANANCHIRA, KOZHIKODE-673001. BY 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.6032 OF 2020(D) 2 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)/ 3rd respondent to consider and dispose of the statutory appeal filed by the petitioner herein, at the earliest, taking note of the Full WP(C).No.6032 OF 2020(D) 3 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. SD/- S.V.BHATTI JUDGE DCS WP(C).No.6032 OF 2020(D) 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1

OF THE ASSESSMENT ORDER NO.ITBA/AST/S/143(3)/2019- 20/1021090933(1)DATED 26.11.2019 ISSUED BY THE YEAR 2017-18 BY THE 2ND RESPONDENT. EXHIBIT P2OF THE APPEAL DATED 28.12.2019 FILED BEFORE THE 3RD RESPONDENT FOR THE ASSESSMENT YEAR 2017-18. EXHIBIT P3OF THE DEMAND NOTICE NO.ITBA/AST/S/156/2019-20/1021091145(1) DATED 26.11.2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P4OF THE STAY APPLICATION FILED ON 28.12.2019 BEFORE THE 3RD RESPONDENT IN EXT P2 APPEAL.

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