THIRUVANANTHAPURAM DISTRICT ELECTRICITY BOARD EMPLOYYES CO-OPERATIVE SOCIETY LTD, vs. INCOME TAX OFFICER

WP(C)/5395/2020HC KeralaKLHC01014188202025 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 also directed that recovery proceedings and collection of tax assessed should be kept in abeyance pending the disposal of the appeal. This decision was made taking note of the Full Bench decision in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287]. The ratio decidendi is that when facts are similar to a precedent where a stay on recovery was granted pending appeal disposal, the same relief should be extended to ensure the appeal is decided on merits without prejudice to the assessee.

What were the facts?

The petitioner, Thiruvananthapuram District Electricity Board Employees Co-operative Society Ltd., filed a writ petition before the High Court of Kerala. The petition challenges an action by the Income Tax Officer, Ward-2(1), Thiruvananthapuram, and seeks directions from the Commissioner of Income Tax (Appeals). The petitioner relies on a 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 on recovery proceedings during the pendency of appeals. The Standing Counsel for the respondents admitted that the facts of the present case are substantially similar to those in the cited Division Bench judgment.

What were the issues?

1. Whether the recovery proceedings and collection of tax assessed should be kept in abeyance pending the disposal of the statutory appeal filed by the petitioner? The petitioner contended that a Division Bench of the High Court, in W.A. No. 1536 of 2019 and connected cases, had directed the disposal of appeals and granted a stay on recovery proceedings during the pendency of the appeal. The petitioner relied on this precedent. The revenue, through its Standing Counsel, admitted that the facts of the present case were substantially the same as those in the cited judgment and therefore, the same could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5395 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.5395 OF 2020(Y) PETITIONER: THIRUVANANTHAPURAM DISTRICT ELECTRICITY BOARD EMPLOYYES CO-OPERATIVE SOCIETY LTD, NO.3039, POWER HOUSE BUILDING, POWER HOUSE ROAD, THIRUVANANTHAPURAM-695036, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.C.A.JOJO SMT.SWATHY S. RESPONDENTS: 1 INCOME TAX OFFICER WARD-2(1), AYANKAR BHAVAN, KAWADIAR, THIRUVANANTHAPURAM-695003. 2 COMMISSIONER OF INCOME TAX (APPEALS), AYANKAR BHAVAN, KAWADIAR, THIRUVANANTHAPURAM-695003. 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.5395 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. 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)/ 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.5395 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.5395 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 07.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P2 A TRUE COPY OF THE DEMAND NOTICE U/S 156 DATED 07.12.2019 ISSUED BY THE FIRST RESPONDENT. EXHIBIT P3 A TRUE COPY OF THE APPEAL FOR AY 2017-18 BEFORE THE 2ND RESPONDENT DATED 04.01.2020. EXHIBIT P4 A TRUE COPY OF THE NOTICE FOR PAYMENT OF 20% OF TAX ISSUED BY THE 1ST RESPONDENT DATED 11.02.2020.

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