THE KUTHIATHODE CO-OPERATIVE URBAN SOCIETY LTD.NO.1051, vs. THE INCOME TAX OFFICER,

WP(C)/5474/2020HC KeralaKLHC01014649202026 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), the second 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 made taking note of the Full Bench decision reported in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut. The Court found that the facts were substantially similar to those in W.A. No. 1536 of 2019, which had been decided by a Division Bench, and therefore, the principles laid down therein were applicable. The ratio decidendi is that when facts are similar to a prior judgment directing expeditious disposal of appeal and stay of recovery, the same relief should be granted. No issue was expressly left undecided.

What were the facts?

The petitioner, The Kuthiathode Co-operative Urban Society Ltd. No. 1051, filed a writ petition before the High Court of Kerala. The petitioner sought directions regarding its pending statutory appeal before 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 on recovery proceedings during the pendency of the appeal. The Income Tax Officer, Ward 5, Alappuzha, and the Commissioner of Income Tax (Appeals), Kottayam, were the respondents. The Standing Counsel for the respondents admitted that the facts of the present case were substantially similar to those considered by the Division Bench 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? (Question of law and fact, concerning procedural directions). 2. Whether recovery proceedings and collection of assessed tax should be kept in abeyance pending the disposal of the statutory appeal? (Question of law and fact, concerning interim relief). 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. They argued that this precedent should be followed in their case. Revenue's Contentions: The learned 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 could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5474 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.5474 OF 2020(H) PETITIONER/S: THE KUTHIATHODE CO-OPERATIVE URBAN SOCIETY LTD.NO.1051, ERAMALLOOR P.O., CHERTHALA, ALAPPUZHA DISTRICT - 688 537, REPRESENTED BY ITS SECRETARY, SYAM B.N., AGED 43,S/O.NARAYANA PANICKER. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER, INCOME TAX DEPARTMENT, WARD 5, ARATTUKULANGARA COMPLEX, A.N.PURAM, ALAPPUZHA - 688 011. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), KOTTAYAM - 686 001. 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:

WP(C).No.5474 OF 2020(H) JUDGMENT Dated this the 26th day of February 2020 Heard Adv.Harisankar V.Menon, for petitioner and Adv. Jose Joseph, 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 WP(C).No.5474 OF 2020(H) 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, 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.5474 OF 2020(H) - 4 -

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2017-18. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT 2017-18. EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT.

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