THE KANJIKUZHY CO-OPERATIVE BANK LTD NO.K-1558 vs. INCOME TAX OFFICER

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WP(C)/5707/2020HC KeralaKLHC01014900202027 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the Commissioner of Income Tax (Appeals) to consider and dispose of the statutory appeal filed by the petitioner at the earliest. The Court also ordered that recovery proceedings and the collection of tax assessed should be kept in abeyance pending the disposal of the appeal. The Court's decision was based on the admission by the Standing Counsel that the facts of the present case were substantially similar to those in a previous writ appeal (W.A. No. 1536 of 2019), where a similar direction was issued. The Court also 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 and stay recovery.

What were the facts?

The petitioner, The Kanjikuzhy Co-operative Bank 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) and for a stay on recovery proceedings. 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 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 writ appeal.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the statutory appeal filed by the petitioner at the earliest? 2. Whether recovery proceedings and collection of tax assessed should be kept in abeyance pending the disposal of the statutory appeal? Assessee's Contentions: The petitioner contended that a Division Bench of the High Court, in W.A. No. 1536 of 2019 and connected cases, had directed the disposal of appeals and granted a stay on recovery proceedings during the pendency of the appeal. They relied on this precedent to support their prayer. Revenue's Contentions: The 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 agreed that the earlier judgment could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5707 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 THURSDAY, THE 27TH DAY OF FEBRUARY 2020 / 8TH PHALGUNA, 1941 WP(C).No.5707 OF 2020(K) PETITIONER/S: THE KANJIKUZHY CO-OPERATIVE BANK LTD NO.K-1558 S.L.PURAM, CHERTHALA.P.O, ALAPPUZHA-688523 REPRESENTED BY ITS SECRETARY BY ADVS. SRI.C.A.JOJO SMT.SWATHY S. RESPONDENT/S: 1 INCOME TAX OFFICER WARD-5, ALAPPUZHA ALAPPUZHA-688011 2 COMMISSIONER OF INCOME TAX(APPEALS)-2 OFFICE OF THE COMMISSIONER OF INCOME TAX, KOTTAYAM. 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:

WP(C).No.5707 OF 2020(K) 2 JUDGMENT Dated this the 27th day of February 2020 Heard Adv.C.A.Jojo for petitioner and Adv.Christopher Abraham, 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 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 WP(C).No.5707 OF 2020(K) 3 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, Calicut1 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]

WP(C).No.5707 OF 2020(K) 4

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 21.12.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P2 A TRUE COPY OF THE DEMAND NOTICE U/S 156 DATED 21.12.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P3 A TRUE COPY OF THE APPEAL FOR AY 2017- 18 BEFORE THE 2ND RESPONDENT DATED 12.01.2020 EXHIBIT P4 A TRUE COPY OF THE LETTER OF DEMAND DATED 06.02.2020 ISSUED BY THE 1ST RESPONDENT

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