PUNALUR SERVICE CO-OPERATIVE BANK LTD.NO.2634 vs. THE INCOME TAX OFFICER, WARD -2

WP(C)/5570/2020HC KeralaKLHC01014852202026 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court held that the writ petition could be disposed of 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 further directed that recovery proceedings and the collection of tax assessed should be kept in abeyance pending the disposal of the appeal. This decision was based on the similarity of facts to the Division Bench judgment in W.A. No. 1536 of 2019 and the Full Bench decision in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut. The ratio of this judgment is that when facts are similar to a binding precedent directing disposal of appeal and stay of recovery, the appellate authority should be directed to dispose of the appeal expeditiously and recovery should be stayed.

What were the facts?

The petitioner, Punalur Service 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 of the Division Bench in W.A. No. 1536 of 2019, which had directed the disposal of appeals and granted a stay on recovery during the pendency of appeals. The Standing Counsel for the revenue acknowledged 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? 2. Whether recovery proceedings and collection of tax assessed should be kept in abeyance pending the disposal of the appeal? Assessee's Contentions: The petitioner contended that the Division Bench in W.A. No. 1536 of 2019 had directed the disposal of appeals and granted a stay of recovery proceedings during the pendency of the appeal, and that this judgment should be followed. The petitioner also relied on the Full Bench decision in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287]. Revenue's Contentions: The Standing Counsel for the revenue admitted that the facts of the case were substantially the same as those noted by the Division Bench in W.A. No. 1536 of 2019 and that the said judgment could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5570 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.5570 OF 2020(U) PETITIONER/S: PUNALUR SERVICE CO-OPERATIVE BANK LTD.NO.2634 REPRESENTED BY ITS SECRETARY, PUNALUR P.O., KOLLAM DISTRICT-691 305. BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD -2 OFFICE OF THE INCOME TAX OFFICER, AAYAKAR BHAVAN, KARBALA JUNCTION, RAILWAY STATION ROAD, KOLLAM, PIN- 691 001. 2 THE COMMISSIONER OF INCOME TAX(APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, PIN-695 003. SC CHRISTOPHER ABRAHAM 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.5570 OF 2020(U) JUDGMENT Dated this the 26th day of February 2020 Heard Adv.T.R.Harikumar, the counsel for the petitioner and Sri. Christopher Abraham, the 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 3 WP(C).No.5570 OF 2020(U) 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 hmh

4 WP(C).No.5570 OF 2020(U)

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 28.11.2019. EXHIBIT P2 A TRUE COPY OF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 28.11.2019. EXHIBIT P3 A TRUE COPY OF THE ONLINE APPEAL DATED 04.12.2019 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 09.01.2020. 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. RESPONDENT'S/S EXHIBITS: NIL

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