THE VADAYAR SERVICE CO OPERATIVE BANK LTD. NO. 266 vs. INCOME TAX OFFICER

WP(C)/5396/2020HC KeralaKLHC01014538202025 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) to consider and dispose of the statutory appeal filed by the petitioner at the earliest. The Court specifically noted that the disposal should take into account the Full Bench decision in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287]. Furthermore, the Court ordered that recovery proceedings and the collection of tax assessed should be kept in abeyance pending the final disposal of the appeal. The Court did not decide on the merits of the appeal itself but rather on the procedural aspects of its disposal and the interim relief regarding recovery.

What were the facts?

The petitioner, The Vadayar Service Co Operative Bank Ltd., represented by its Secretary, filed a writ petition before the High Court of Kerala. The petitioner sought directions concerning its pending statutory appeal before the Commissioner of Income Tax (Appeals). 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 appeals. The Income Tax Officer (Ward-4) 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 statutory appeal filed by the petitioner before the Commissioner of Income Tax (Appeals) should be disposed of expeditiously, considering the facts are similar to a previous Division Bench judgment. (Question of law and fact) 2. Whether recovery proceedings and collection of tax assessed should be kept in abeyance pending the disposal of the statutory appeal. (Question of law and fact) Assessee's Contention: The petitioner contended that a Division Bench judgment in W.A. No. 1536 of 2019 directed the disposal of appeals and granted a stay of recovery proceedings during the pendency of appeals, and this precedent should be followed. Revenue's Contention: The learned 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, implying agreement with the petitioner's reliance on that judgment.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5396 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 TUESDAY, THE 25TH DAY OF FEBRUARY 2020 / 6TH PHALGUNA, 1941 WP(C).No.5396 OF 2020(Y) PETITIONER: THE VADAYAR SERVICE CO OPERATIVE BANK LTD. NO. 266 VADYAR.P.O, THALAYOLAPARAMBU, KOTTAYAM-686605 REPRESENTED BY ITS SECRETARY BY ADVS. SRI.C.A.JOJO SMT.SWATHY S. RESPONDENTS: 1 INCOME TAX OFFICER WARD-4, INCOME TAX OFFICE, PUBLIC LIBRARY BLDG, KOTTAYAM-686001 2 COMMISSIONER OF INCOME TAX(APPEALS) OFFICE OF THE COMMISSIONER OF INCOME TAX, KOTTAYAM-686002 BY SRI. JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.5396 OF 2020(Y) 2 JUDGMENT Dated this the 25th day of February 2020 Heard Sri. C.A. Jojo, the learned counsel for the petitioner and Sri. Jose Joseph, the learned 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 consider and dispose of the statutory appeal filed by the petitioner herein, at the earliest, taking note of the Full

WP(C).No.5396 OF 2020(Y) 3 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 DCS

WP(C).No.5396 OF 2020(Y) 4

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR AY 2017-18 DATED 31.12.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P2 A TRUE COPY OF THE DEMAND NOTICE U/S 156 DATED 31.12.2019 ISSUED BY THE FIRST RESPONDENT EXHIBIT P3 A TRUE COPY OF THE APPEAL FOR AY 2017-18 BEFORE THE 2ND RESPONDENT DATED 30.01.2020 EXHIBIT P4 A TRUE COPY OF THE LETTER OF DEMAND OF 20% DATED 31.01.2020 ISSUED BY THE 1ST RESPONDENT

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