THE MEENACHIL SERVICE CO-OPERATIVE BANK LTD. NO. K 271 vs. THE CENTRAL BOARD OF DIRECT TAXES

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WP(C)/5292/2020HC KeralaKLHC01014101202025 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages
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What did the High Court hold?

The High Court directed the Commissioner of Income Tax (Appeals) (3rd respondent) to consider and dispose of the statutory appeal filed by the petitioner at the earliest. The Court emphasized that the disposal should take 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]. Furthermore, the Court ordered that recovery proceedings and the collection of tax assessed should be kept in abeyance pending the disposal of the appeal. The Court found that the facts were substantially similar to a previous judgment, which warranted following its directions. The operative direction is to dispose of the appeal and stay recovery proceedings.

What were the facts?

The petitioner, The Meenachil Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala. The petition was filed against the Central Board of Direct Taxes, the Income Tax Officer, and the Commissioner of Income Tax (Appeals). The petitioner sought a direction for the disposal of their statutory appeal and a stay on recovery proceedings. The petitioner relied on a previous judgment dated 01.07.2019 in W.A No.1536 of 2019 and connected cases, which directed the disposal of appeals and granted a stay on recovery during the pendency of appeals. The Standing Counsel for the respondents admitted that the facts of the present case were substantially similar to those in the cited 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, considering the Full Bench decision in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287]? (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 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 on recovery proceedings during the pendency of the appeal. They argued that the present case had substantially similar facts and should be treated accordingly. 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.

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Heard together (2 matters)

WP(C).No.5292 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.5292 OF 2020(J) PETITIONER/S: THE MEENACHIL SERVICE CO-OPERATIVE BANK LTD. NO. K 271, EDAMATTOM P.O., KOTTAYAM-686 578, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.SHAJI THOMAS SRI.JEN JAISON RESPONDENT/S: 1 THE CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110 001 REPRESENTED BY ITS CHAIRMAN. 2 INCOME TAX OFFICER, WARD 3, INCOME TAX OFFICE, PUBLIC LIBRARY BUILDING, SHASTRI ROAD, KOTTAYAM-686 001. 3 COMMISSIONER OF INCOME TAX (APPEALS), KOTTAYAM-686 001. 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.5292 OF 2020 2 JUDGMENT Dated this the 25th day of February 2020 Heard Sri. Shaji Thomas, 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)/ 3rd 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.5292 OF 2020 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 uu 27.02.2020

WP(C).No.5292 OF 2020 4

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE PHOTOCOPY OF THE ASSESSMENT ORDER NO.ITBA/AST/S/143(3)/2019- 20/1022562560(1) DATED 17.12.2019. EXHIBIT P2 TRUE PHOTOCOPY OF THE DEMAND NOTICE NO.ITBA/AST/S/156/2019- 20/1022562606(1) DATED 17.12.2019 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P3 TRUE PHOTOCOPY OF THE APPEAL IN FORM 35 FILED BY THE PETITIONER DATED 29.1.2020 FOR THE YEAR 2017-18 BEFORE THE 3RD RESPONDENT. EXHIBIT P4 TRUE PHOTOCOPY OF THE APPLICATION FOR STAY DATED 4.2.2020 FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT. EXHIBIT P5 TRUE PHOTOCOPY OF THE JUDGMENT DATED 1.7.2019 IN W.A.NO.1529/2019 OF THIS HON'BLE COURT

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