THE PATHANAPURAM SERVICE CO-OPERATIVE BANK LTD. NO. 3656 vs. THE INCOME TAX OFFICER

WP(C)/5910/2020HC KeralaKLHC01015684202028 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) (2nd respondent) to consider and dispose of the statutory appeal filed by the petitioner at the earliest. The Court specifically instructed 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 tax assessed should be kept in abeyance pending the disposal of the appeal. The principle established is that in cases with similar facts to those in prior High Court judgments concerning co-operative banks, appeals should be expeditiously disposed of, and recovery should be stayed.

What were the facts?

The petitioner, The Pathanapuram Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala challenging an order or action by the Income Tax Officer (respondent no. 1) and the Commissioner of Income Tax (Appeals) (respondent no. 2). The petitioner relied on a previous 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 on recovery proceedings during the pendency of the appeal. The Standing Counsel for the respondents admitted that the facts of the present case were substantially similar to those in the cited writ appeal.

What were the issues?

1. Whether the recovery proceedings and collection of assessed tax should be kept in abeyance pending the disposal of the statutory appeal filed by the petitioner, considering the facts are similar to those in W.A. No. 1536 of 2019 and connected cases? Assessee's Contention: The petitioner argued that based on the Division Bench's direction in W.A. No. 1536 of 2019 and connected cases, the recovery proceedings should be stayed during the pendency of their appeal. Revenue's Contention: The revenue, through its Standing Counsel, admitted that the facts of the case were substantially the same as in the previously decided writ appeal and therefore, the same course of action could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5910 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.5910 OF 2020(K) PETITIONER: THE PATHANAPURAM SERVICE CO-OPERATIVE BANK LTD. NO. 3656, REPRESENTED BY ITS SECRETARY, PATHANAPURAM P.O, KOLLAM DISTRICT, PIN-689695. BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD NO-2, OFFICE OF THE INCOME TAX OFFICER, AAYAKAR BHAVAN, KARBALA JUNCTION, KOLLAM-PIN-691001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM-PIN-695003. 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:

JUDGMENT Dated this the 28th day of February, 2020 Heard Sri. T.R.Harikumar, the learned counsel for the petitioner and Sri. Christopher Abraham, the learned 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. 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 SR

Appendix — schedule of exhibits

APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 06.12.2019. EXHIBIT P2 A TRUE COPY OF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT 06.12.2019. EXHIBIT P3 A TRUE COPY OF THE ONLINE APPEAL DATED 24.12.2019 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 14.01.2020. EXHIBIT P5 A TRUE COPY OF THE JUDGMENT DATED 19.07.2019 IN W.A NO.1639/2019. EXHIBIT P6 A TRUE COPY OF THE JUDGMENT DATED 17.02.2020 IN WP(C) NO.4433 OF 2020. SR //True Copy// PA to Judge

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