CHALISSERY SERVICE CO-OPERATIVE BANK LTD vs. THE INCOME TAX OFFICER

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WP(C)/5569/2020HC KeralaKLHC01014892202026 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 also directed that recovery proceedings and the collection of assessed tax be kept in abeyance pending the disposal of the appeal. This decision was based on the admission by the revenue's counsel that the facts of the case were substantially similar to those in the Division Bench judgment in W.A. No. 1536 of 2019. The Court specifically referred to the Full Bench decision in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287] for the disposal of the appeal. No issue was expressly left undecided.

What were the facts?

The petitioner, M/s. Chalissery Service Co-operative Bank Ltd., represented by its Secretary, 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 a stay on recovery proceedings. 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 on recovery during the pendency of appeals. The Income Tax Officer, Ward - 3, Palakkad, and the Commissioner of Income Tax (Appeals) were the respondents. The learned 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 Commissioner of Income Tax (Appeals) should be directed to dispose of the statutory appeal filed by the petitioner at the earliest, considering the facts and circumstances of the case? 2. Whether recovery proceedings and collection of assessed tax should be kept in abeyance pending the disposal of the petitioner's 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 of recovery proceedings during the pendency of the appeal. The petitioner urged the Court to follow this precedent. Revenue's Contentions: The learned Standing Counsel for the respondents admitted that the facts of the present case were substantially the same as those in the Division Bench judgment relied upon by the petitioner, and therefore, the precedent could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5569 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 WEDNESDAY, THE 26TH DAY OF FEBRUARY 2020 / 7TH PHALGUNA, 1941 WP(C).No.5569 OF 2020(U) PETITIONER/S: M/S.CHALISSERY SERVICE CO-OPERATIVE BANK LTD P-579, CHALISSERY, PALAKKAD - 679 536, REPRESENTED BY ITS SECRETARY, SHRI T. GANGADHARAN. BY ADVS. SRI.T.M.SREEDHARAN (SR.) SMT.NISHA JOHN SRI.V.P.NARAYANAN RESPONDENTS: 1 THE INCOME TAX OFFICER WARD - 3, PALAKKAD - 678 014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAWAN, SAKTHAN THAMPURAN NAGAR, THRISSUR - 680 001. SC JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

2 WP(C).No.5569 OF 2020(U) JUDGMENT Dated this the 26th day of February 2020 Heard Adv. Nisha John, the learned counsel for the petitioner and Sri. Jose Joseph, 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)/ 2nd respondent to consider and dispose of the statutory appeal filed by the 3 WP(C).No.5569 OF 2020(U) 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 hmh

4 WP(C).No.5569 OF 2020(U)

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF ASSESSMENT ORDER DATED 23.12.2019 FOR AY 2017-18 ALONG WITH DEMAND NOTICE AND COMPUTATION STATEMENT PASSED BY THE 1ST RESPONDENT. EXHIBIT P2 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 12.1.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY 2017- 18. EXHIBIT P3 TRUE COPY OF THE STAY PETITION DATED 18.2.2020 FILED BY THE PETITIONER FOR AY 2017-18 BEFORE THE 2ND RESPONDENT. EXHIBIT P4 TRUE COPY OF THE APPLICATION DATED 18.2.2020 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDNET U/S 220 (6). RESPONDENT'S/S EXHIBITS: NIL

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