ANDATHODE SERVICE CO-OPERATIVE BANK LIMITED NO. F 1249 vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/5333/2020HC KeralaKLHC01014183202025 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 appeals filed by the petitioner at the earliest. The Court also directed that recovery proceedings and the collection of assessed tax be kept in abeyance pending the disposal of these appeals. This decision was based on the petitioner's reliance on the judgment in W.A. No. 1536 of 2019 and the admission by the revenue's counsel that the facts were substantially similar. The Court explicitly 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 appeals. The ratio decidendi is that where facts are similar to a binding precedent directing early disposal of appeals and stay of recovery, such relief should be granted.

What were the facts?

The petitioner, Andathode Service Co-operative Bank Limited, filed a writ petition before the High Court of Kerala. The petitioner sought directions for the disposal of statutory appeals pending before the Commissioner of Income Tax (Appeals). The petitioner relied on a previous Division Bench judgment in W.A. No. 1536 of 2019 and connected cases, which directed the disposal of appeals and granted a stay on recovery proceedings during the pendency of the appeals. 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 consider and dispose of the statutory appeals 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 petitioner's appeals? (Question of law and fact) 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. They relied on this precedent to seek similar relief. Revenue's Contention: The learned Standing Counsel for the respondents admitted that the facts of the case were substantially the same as those noted by the Division Bench in W.A. No. 1536 of 2019, implying they did not oppose the application of the precedent.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5333 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.5333 OF 2020(N) PETITIONER: ANDATHODE SERVICE CO-OPERATIVE BANK LIMITED NO. F 1249 ERAMANGALAM P O, MALAPPURAM DISTRICT-679587, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, KOZHIKODE-673001. 2 THE INCOME TAX OFFICER, WARD (4), TIRUR - 676001 BY SRI. JOS WINSON FOR SRI. CHRISTOPHER ABRAHAM, 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.5333 OF 2020(N) 2 JUDGMENT Dated this the 25th day of February 2020 Heard Sri. O.D. Sivadas, the learned counsel for the petitioner and Sri. Jos Winson holding for Sri. Christopher Abraham, 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)/ 1st respondent to consider and dispose of the statutory appeals filed by the WP(C).No.5333 OF 2020(N) 3 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 appeals. S.V.BHATTI JUDGE DCS

WP(C).No.5333 OF 2020(N) 4

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 20.12.2018 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2016-17. EXHIBIT P2 COPY OF THE ASSESSMENT ORDER DATED 26.12.2019 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2017-18. EXHIBIT P3 COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2016-17. EXHIBIT P4 COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2017-18. EXHIBIT P5 COPY OF THE PROCEEDING DATED 11.02.2020 ISSUED BY THE 2ND RESPONDENT DEMANDING THE DISPUTED TAX.

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