THE KATAMPAZHIPURAM SERVICE CO OPERATIVE BANK LTD., vs. THE INCOME TAX OFFICER,

WP(C)/5558/2020HC KeralaKLHC01014939202026 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court held that the facts of the present case were substantially the same and similar to the facts noted by the Division Bench in W.A. No. 1536 of 2019. Therefore, the 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 directed that recovery proceedings and the collection of assessed tax be kept in abeyance pending the disposal of the appeal. The Court explicitly referred to and relied upon the Full Bench decision reported in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287]. The operative direction is to dispose of the appeal expeditiously and grant a stay of recovery.

What were the facts?

The petitioner, The Katampazhipuram Service Co Operative Bank Ltd., filed a writ petition before the High Court of Kerala. The petitioner sought directions regarding a statutory appeal filed before the Commissioner of Income Tax (Appeals) and the stay of 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 of recovery during the pendency of the appeal. The Income Tax Officer, Ward-3, Palakkad, and the Commissioner of Income Tax (Appeals), Thrissur, were the respondents. The assessment years are not specified in the 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. (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 appeal. (Question of law, concerning interim relief). Assessee's contentions: The petitioner relied on the judgment 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 the appeal. The petitioner implicitly argued that similar directions should be granted in their case. Revenue's contentions: The Standing Counsel for the respondents admitted that the facts of the case were substantially the same and similar to those noted by the Division Bench in W.A. No. 1536 of 2019, and therefore, the earlier judgment could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5558 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.5558 OF 2020(T) PETITIONER: THE KATAMPAZHIPURAM SERVICE CO OPERATIVE BANK LTD., XIV/176, KATAMPAZHIPURAM, SREEKRISHNAPURAM, PALAKKAD - 678 633, KERALA, REPRESENTED BY ITS SECRETARY SRI.K.SUBRAHMANIAN. BY ADVS. SRI.T.M.SREEDHARAN (SR.) SRI.V.P.NARAYANAN SMT.DIVYA RAVINDRAN RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD-3, AAYAKAR BHAVAN, 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.5558 OF 2020(T) JUDGMENT Dated this the 26th day of February 2020 Heard Adv. Nisha John, the counsel for the petitioner and Sri. 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 Commissioner of Income Tax (Appeals)/ 2nd respondent to 3 WP(C).No.5558 OF 2020(T) 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.5558 OF 2020(T)

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF ASSESSMENT ORDER DATED 19/12/2019 FOR AY-2017-18 ALON WITH DEMAND NOTICE AND COMPUTATION STATEMENT PASSED BY THE 1ST RESPONDENT. EXHIBIT P2 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 12/1/2010 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 U/S 220(6) OF THE ACT DATED 18/2/2020 FILED BY THE PETITIONER FOR AY-2017-18 BEFORE THE 1ST RESPONDENT. RESPONDENT'S/S EXHIBITS: NIL

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