THE KADAKKAVOOR SERVICE CO-OPERATIVE BANK LTD.NO.1063 vs. THE INCOME TAX OFFICER

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WP(C)/5686/2020HC KeralaKLHC01015133202027 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. The Court took note of the Full Bench decision in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut. The operative direction is to dispose of the appeal expeditiously and stay recovery during the pendency of the appeal.

What were the facts?

The petitioner, The Kadakkavoor Service Co-operative Bank Ltd. No. 1063, represented by its Secretary, filed a writ petition before the High Court of Kerala. The petition was directed against the Income Tax Officer and the Commissioner of Income Tax (Appeals). The petitioner relied on a Division Bench 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 of recovery proceedings during the pendency of appeals. The Standing Counsel for the respondents 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 recovery proceedings and collection of tax assessed should be kept in abeyance pending the disposal of the statutory appeal filed by the petitioner? The petitioner contended that a Division Bench judgment in W.A. No. 1536 of 2019 and connected cases directed the disposal of appeals and granted a stay of recovery proceedings during the pendency of the appeal. The petitioner sought similar relief. The revenue, through the Standing Counsel, admitted that the facts of the case were substantially similar to those in the Division Bench judgment cited by the petitioner and agreed that the said judgment could be followed.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
-1- WP(C) NO.5686 OF 2020 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.5686 OF 2020(I) PETITIONER/S: THE KADAKKAVOOR SERVICE CO-OPERATIVE BANK LTD.NO.1063 REPRESENTED BY ITS SECRETARY, KADAKKAVOOR P.O., THIRUVANANTHAPURAM DISTRICT. BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 2(5), OFFICE OF THE INCOME TAX OFFICER, AAYAKAR BHAVAN, KAWDIAR P.O., THIRUVANANTHAPURAM, PIN-695 003. 2 THE COMMISISONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, KAWDIAR P.O., THIRUVANANTHAPURAM, PIN-695 003. SC CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: -2- WP(C) NO.5686 OF 2020

JUDGMENT Heard Adv.T.R Harikumar, for the petitioner and Adv.Christopher Abraham, the 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)/ 2nd respondent to -3- WP(C) NO.5686 OF 2020 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 1 and to keep in abeyance recovery proceedings and collection of tax assessed, pending disposal of such appeal. S.V.BHATTI JUDGE JS 1[2019 (2) KHC 287]

-4- WP(C) NO.5686 OF 2020

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 19.12.2019. EXHIBIT P2 A TRUE COPY OF THE NOTICE UNDER SECTION 156 OF THE INCOME TAX ACT DATED 19.12.2019. EXHIBIT P3 A TRUE COPY OF THE ONLINE APPEAL DATED 04.01.2020 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 DATED 13.01.2020. EXHIBIT P5 A TRUE COPY OF THE JUDGMENT DATED 19.07.2019 IN WA NO.1639 OF 2019. EXHIBIT P6 A TRUE COPY OF THE JUDGMENT DATED 17.02.2020 IN WPC NO.4433 OF 2020.

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