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

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WP(C)/5239/2020HC KeralaKLHC01014289202025 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI3 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 referred to and directed the Commissioner to 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 be kept in abeyance pending the disposal of the appeal. The reasoning is based on the admission by the revenue that the facts are similar to a precedent and the directive to follow the Mavilayi Service Co-operative Bank Ltd. judgment. The ratio is that in similar circumstances, statutory appeals should be expedited, and recovery should be stayed pending disposal, referencing established High Court judgments.

What were the facts?

The petitioner, The Vadavannur Service Co-operative Bank Ltd., represented by its Secretary, filed a writ petition before the High Court of Kerala. The petitioner sought directions regarding its pending statutory appeal before the Commissioner of Income Tax (Appeals). The petitioner relied on a previous Division Bench 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 proceedings during the pendency of the appeal. The Income Tax Officer, Ward 5, Palakkad, and the Commissioner of Income Tax (Appeals), Thrissur, are the respondents. The assessment year(s) are not explicitly stated in the judgment.

What were the issues?

1. Whether the petitioner is entitled to a direction for the early disposal of its statutory appeal before the Commissioner of Income Tax (Appeals)? (Question of law and fact, turning on principles of natural justice and administrative efficiency). 2. Whether the petitioner is entitled to a stay of recovery proceedings and collection of tax assessed pending the disposal of its appeal? (Question of law, turning on the powers of appellate authorities and the High Court in writ jurisdiction). Assessee's Contentions: The petitioner contended that the facts of its case are substantially similar to those in W.A. No. 1536 of 2019 and connected cases, where the Division Bench directed the disposal of appeals and granted a stay of recovery. The petitioner relied on the judgment in W.A. No. 1536 of 2019. Revenue's Contentions: The learned Standing Counsel for the respondents admitted that the facts of the case are substantially the same and similar to the facts noted by the Division Bench in W.A. No. 1536 of 2019 and could be followed.

AI-generated summary — verify with the full judgment below

Heard together (4 matters)

WP(C).No.5239 OF 2020
W.A No.1536 of 2019
WP(C)NO.21015/19
WP(C)NO.4366/2020

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.5239 OF 2020(D) PETITIONER: THE VADAVANNUR SERVICE CO-OPERATIVE BANK LTD. NO.F-1217, VADAVANNUR, PALAKKAD-678504, REPRESENTED BY ITS SECRETARY, RAVI BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD 5, AYAKAR BHAVAN, PALAKKAD-678014 2 THE COMMISSIONER OF INCOME TAX(APPEALS) SAKTHAN NAGAR, THRISSUR-680021 OTHER PRESENT: 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:

WPC No.5239 of 2020 2 JUDGMENT Dated this the 25th day of February 2020

Heard Sri. Harisankar V.Menon, 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)/ 2nd 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-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. sd/-S.V.BHATTI JUDGE css/

Appendix — schedule of exhibits
APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2017-18 EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT 2017-18 EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT P4 COPY OF ORDER ISSUED BY THE 1ST RESPONDENT EXHIBIT P5 COPY OF JUDGMENT IN WP(C)NO.21015/19 OF THIS HON'BLE COURT EXHIBIT P5(a) COPY OF JUDGMENT IN WP(C)NO.4366/2020 OF THIS HON'BLE COURT

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