ADAT FARMERS SERVICE CO-OPERATIVE BANK LTD NO.R 689 vs. THE COMMISSIONER OF INCOME TAX, APPEALS

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WP(C)/5338/2020HC KeralaKLHC01014251202025 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala 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 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 based on the petitioner's reliance on a previous Division Bench judgment (W.A. No.1536 of 2019) and the admission by the revenue's Standing Counsel that the facts were substantially similar. The Court specifically referred to the Full Bench decision in The Mavilayi Service Co-operative Bank Ltd, v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287] as a guiding principle for the disposal of the appeal. The ratio decidendi is that where facts are similar to a precedent and the revenue does not contest the applicability of the precedent, the appellate authority should expedite the appeal and stay recovery proceedings.

What were the facts?

The petitioner, Adat Farmers 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), the first respondent. 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 statutory appeal filed by the petitioner before the Commissioner of Income Tax (Appeals) should be disposed of expeditiously? (Question of procedure) 2. Whether recovery proceedings and collection of tax assessed should be kept in abeyance pending the disposal of the statutory appeal? (Question of mixed law and fact, concerning the powers of the appellate authority and the principles of natural justice). Assessee's Contention: The petitioner contended that, similar to the facts in W.A. No.1536 of 2019, the Division Bench had directed the disposal of appeals and granted a stay of recovery proceedings during the pendency of the appeal. The petitioner implicitly argued for similar relief. Revenue's Contention: The Standing Counsel for the revenue admitted that the facts of the case were substantially the same as those in the Division Bench judgment relied upon by the petitioner, thereby implicitly agreeing that the principles laid down in that judgment could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5338 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.5338 OF 2020(N) PETITIONER: ADAT FARMERS SERVICE CO-OPERATIVE BANK LTD NO.R 689 PURANATTUKARA, PURANATTUKARA.P.O, THRISSUR-680551, REPRESENTED BY ITS MANAGING DIRECTOR. BY ADV. SRI.P.C.SASIDHARAN RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX, APPEALS, OFFICE OF THE COMMISSIONER OF INCOME TAX APPEAL, THRISSUR-680001. 2 THE INCOME TAX OFFICER, WARD 2(1), AAYAKAR BHAVAN, INCOME TAX OFFICE, SAKTHANTHAPURAN NAGAR, THRISSUR-680001. 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.5338 OF 2020(N) 2 JUDGMENT Dated this the 25th day of February 2020 Heard Sri. P. C. Sasidharan, the learned counsel for the petitioner and Sri. Jose Joseph, the learned Standing Counsel for respondents.

2.

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.

3.

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)/ 1st 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-

WP(C).No.5338 OF 2020(N) 3 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.5338 OF 2020(N) 4

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE REGISTRATION CERTIFICATE ISSUED BY THE CO-OPERATIVE DEPARTMENT ON ITS REGISTRARTION. EXHIBIT P2 TRUE COPY OF THE ASSESSMENT ORDER DATED 03/12/2019 EXHIBIT P3 TRUE COPY OF THE DEMAND NOTICE DATED 03/12/2019 EXHIBIT P4 TRUE COPY OF THE COMPUTATION SHEET. EXHIBIT P5 TRUE COPY OF THE APPEAL DATED 06.01.2020 EXHIBIT P6 TRUE COPY OF THE STAY PETITION DATED 07.01.2020 EXHIBIT P7 TRUE COPY OF THE COMMUNICATION DATED 27.01.2020 EXHIBIT P8 TRUE COPY OF THE STAY PETITION DATED 05.02.2020. EXHIBIT P9 TRUE COPY OF THE JUDGMENT IN W.P(C)NO.2334 OF 2020 EXHIBIT P10 TRUE COPY OF THE JUDGMENT IN W.A.NO.1536 OF 2019 DATED 1/7/2019.

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