KOZHIPPILLY SERVICE CO-OPERATIVE BANK LTD. NO. E 167 vs. INCOME TAX OFFICER

WP(C)/5589/2020HC KeralaKLHC01014894202026 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)-2 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 tax assessed should be kept in abeyance pending the disposal of the appeal. This decision was made by taking note of the Full Bench decision in The Mavilayi Service Co-operative Bank Ltd, v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287] and the admission by the revenue that the facts were similar to a previous Division Bench judgment (W.A. No.1536 of 2019). The principle is that statutory appeals should be disposed of expeditiously, and recovery should be stayed pending such disposal, especially when facts are similar to precedents.

What were the facts?

The petitioner, Kozhippilly Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala. The petitioner sought directions for the disposal of its statutory appeal pending before the Commissioner of Income Tax (Appeals)-2. The petitioner relied on a previous Division Bench judgment (W.A. No.1536 of 2019) which directed the disposal of appeals and granted a stay on recovery proceedings during the pendency of the appeal. The 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? 2. Whether recovery proceedings and collection of tax assessed should be kept in abeyance pending the disposal of the statutory appeal? Assessee's Contention: The petitioner relied on the judgment in W.A. No.1536 of 2019 to argue that the disposal of the appeal should be expedited and recovery proceedings should be stayed. The petitioner also implicitly 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 Contention: The Standing Counsel for the respondents admitted that the facts of the case were similar to those in W.A. No.1536 of 2019 and that the judgment could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5589 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.5589 OF 2020(W) PETITIONER: KOZHIPPILLY SERVICE CO-OPERATIVE BANK LTD. NO. E 167, KOZHIPPILLY P O, KOTHAMANGALAM, PIN-686691, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SMT.SWATHY S. RESPONDENTS: 1 INCOME TAX OFFICER WARD 1 AND TPS, INCOME TAX OFFICE, TEMPLE ROAD, THODUPUZHA, PIN-685584. 2 COMMISSIONER OF INCOME TAX(APPEALS)-2 OFFICE OF THE COMMISSIONER OF INCOME TAX, CENTRAL REVENUE TOWER, KOCHI-682018. 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:

WP(C).No.5589 OF 2020(W) -2- JUDGMENT Dated this the 26th day of February 2020 Heard Adv. C.A.Jojo, 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 WP(C).No.5589 OF 2020(W) -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, 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

WP(C).No.5589 OF 2020(W) -4-

Appendix — schedule of exhibits

APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER AY 2013- 14 DATED 18.03.2016 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 A TRUE COPY OF THE DEMAND NOTICE U/S. 156 DATED 18.03.2016 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 A TRUE COPY OF THE APPEAL FOR AY-2013-14 BEFORE THE 2ND RESPONDENT DATED 19.05.2018. EXHIBIT P4 A TRUE COPY OF THE ASSESSMENT ORDER FOR AY 2014-15 DATED 19.12.2016 BY THE 1ST RESPONDENT. EXHIBIT P5 A TRUE COPY OF THE DEMAND NOTICE U/S. 156 DATED 19.12.2016 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P6 A TRUE COPY OF THE APPEAL FOR AY 2014-15 BEFORE THE 2ND RESPONDENT DATED 03.02.2017. EXHIBIT P7 A TRUE COPY OF THE ASSESSMENT ORDER AY 2017- 18 DATED 15.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P8 A TRUE OF THE DEMAND NOTICE U/S. 156 DATED 15.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P9 A TRUE COPY OF THE APPEAL FOR AY 2017-18 BEFORE THE 2ND RESPONDENT DATED 22.01.2020. EXHIBIT P10 A TRUE COPY OF THE NOTICE OF DEMAND DATED 12.02.2019 FOR AY 2017-18 ISSUED BY THE 1ST RESPONDENT. RESPONDENTS' EXHIBITS: NIL

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