SL PURAM SERVICE CO-OPERATIVE BANK LTD NO.A 64 vs. INCOME TAX OFFICER

WP(C)/5908/2020HC KeralaKLHC01015955202027 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) (2nd respondent) to consider and dispose of the statutory appeal filed by the petitioner at the earliest. The Court also ordered that recovery proceedings and collection of tax assessed be kept in abeyance pending the disposal of the appeal. Furthermore, Ext.P6, the garnishee notice, was stayed until the appeal is disposed of as directed. The reasoning was based on the similarity of facts to a previous Division Bench judgment (W.A No.1536 of 2019) and a Full Bench decision in The Mavilayi Service Co-operative Bank Ltd, v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287]. The operative direction is to dispose of the appeal expeditiously and stay recovery proceedings.

What were the facts?

The petitioner, S L Puram Service Co-operative Bank Ltd, filed a writ petition before the High Court of Kerala challenging a notice (Ext.P6) dated 26.02.2020 issued by the Income Tax Officer (1st respondent) to recover the entire tax by freezing the bank account. The petitioner relied on a Division Bench judgment dated 01.07.2019 in W.A No.1536 of 2019 and connected cases, which directed disposal of appeals and granted a stay of recovery proceedings during the pendency of appeals. The Standing Counsel for the respondents admitted that the facts of this case were substantially similar to those considered by the Division Bench in the cited writ appeal.

What were the issues?

1. Whether the recovery proceedings initiated by the Income Tax Officer should be stayed pending the disposal of the statutory appeal filed by the petitioner? The petitioner contended that recovery proceedings should be stayed, citing a Division Bench judgment in W.A No.1536 of 2019, which granted a stay of recovery pending appeal disposal. The petitioner also referred to Ext.P6, a garnishee notice freezing their bank account for tax recovery. The revenue, through the Standing Counsel, admitted that the facts were similar to a previous case where the Division Bench had granted relief, implying no strong objection to a similar course of action.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5908 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 THURSDAY, THE 27TH DAY OF FEBRUARY 2020 / 8TH PHALGUNA, 1941 WP(C).No.5908 OF 2020(K) PETITIONER/S: S L PURAM SERVICE CO-OPERATIVE BANK LTD NO.A 64 S.L.PURAM.P.O, CHERTHALA, ALAPPUZHA-688523, REPRESENTED BY ITS SECRETARY BY ADVS. SRI.C.A.JOJO SMT.SWATHY S. RESPONDENT/S: 1 INCOME TAX OFFICER WARD-4, ALAPPUZHA-688011 2 COMMISSIONER OF INCOME TAX(APPEALS) OFFICE OF THE COMMISSIONER OF INCOME TAX, KOTTAYAM-686002 3 THE BRANCH MANAGER ALAPPUZHA DCB MAIN, OPP.MUNICIPAL TOWN HALL, ALAPPUZHA, KERALA-688011 OTHER PRESENT: SC JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No. 5908/2020 -2- J U D G M E N T Dated this the 27th day of February 2020 Heard Advocate C.A. Jojo for petitioner, Advocate P.C.Sasidharan for R3 and Advocate Jose Joseph, Standing Counsel for R1 and R2. 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. The petitioner submits that the 1st respondent has issued Ext.P6 notice to the Bank dated 26.02.2020 initiating garnishee proceedings to recover the entire tax by freezing the bank account. 3. The learned Standing Counsel admits that the facts of the case are substantially same and similar to the facts noted by W.P.(C) No. 5908/2020 -3- 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. In the meantime Ext.P6 is stayed till the appeal is disposed of as directed by this

judgment. S.V.BHATTI JUDGE jjj

W.P.(C) No. 5908/2020 -4- APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER FOR AY 2017- 18 DATED 26.12.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P2 AOF THE DEMAND NOTICE U/S. 156 DATED 26.12.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P3 AOF THE APPEAL FOR AY 2017-18 BEFORE THE 2ND RESPONDENT DATED 20.01.2020 EXHIBIT P4 AOF THE NOTICE ISSUED BY THE 1ST RESPONDENT FOR PAYMENT OF 20% DATED 04.02.2020 EXHIBIT P5 AOF THE LETTER SUBMITTED TO THE 1ST RESPONDENT DATED 08.02.2020 EXHIBIT P6 AOF THE NOTICE ISSUED BY THE 1ST RESPONDENT TO THE 3RD RESPONDENT DATED 26.02.2020

Recent GST High Court judgments

Search GST case law →