THE PERUNAD SERVICE CO-OPERATIVE BANK LTD. vs. COMMISSIONER OF INCOME-TAX (APPEALS)

WP(C)/5424/2020HC KeralaKLHC01014302202025 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) (1st respondent) 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 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 Court found that the facts of the present case were substantially similar to those in the cited Division Bench judgment, which supported the petitioner's plea for expedited disposal and stay of recovery.

What were the facts?

The petitioner, The Perunad 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 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 the appeal. The Income Tax Officer, Ward 3, Kottayam, is the second respondent. The learned 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 dispose of the statutory appeal filed by the petitioner at the earliest, considering the facts and circumstances of the case? 2. Whether recovery proceedings and collection of tax assessed should be kept in abeyance pending the disposal of the statutory appeal? Assessee's Contentions: The petitioner contended that a Division Bench judgment in W.A. No. 1536 of 2019 and connected cases directed the disposal of appeals and granted a stay of recovery proceedings during the pendency of the appeal. The petitioner relied on this precedent to support its prayer. Revenue's Contentions: The learned Standing Counsel for the respondents admitted that the facts of the case were substantially the same and similar to the facts noted by the Division Bench in W.A. No. 1536 of 2019, implying agreement with the applicability of the precedent.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5424 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.5424 OF 2020(C) PETITIONER: THE PERUNAD SERVICE CO-OPERATIVE BANK LTD. PERUNAD, RANNI, PATHANAMTHITTA DIST., PIN - 689 711 BY ADVS. SRI.A.KUMAR SRI.P.J.ANILKUMAR SMTG.MINI(1748) SRI.P.S.SREE PRASAD SHRI.ABRAHAM JOB SRI.AJAY V.ANAND RESPONDENTS: 1 COMMISSIONER OF INCOME-TAX (APPEALS) PUBLIC LIBRARY BUILDING, SASTRI ROAD, KOTTAYAM - 686 001 2 INCOME TAX OFFICER WARD 3, INCOME TAX OFFICE, PUBLIC LIBRARY BUILDING, SHASTRI ROAD, 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.5424 OF 2020(C) JUDGMENT Dated this the 25th day of February 2020 Heard Sri. A.Kumar, the learned counsel for the petitioner and Sri. Jose Joseph, 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 appeal filed by the petitioner herein, at the earliest, taking note of the Full

WP(C).No.5424 OF 2020(C) 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.5424 OF 2020(C)

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 23.12.2019 EXHIBIT P2 TRUE COPY OF NOTICE OF DEMAND UNDER SECTION 156 DATED 23.12.2019 EXHIBIT P3 TRUE COPY OF APPEAL FILED IN FORM 35 DATED 18.02.2020 EXHIBIT P4 TRUE COPY OF STAY APPLICATION DATED 'NIL' EXHIBIT P5 TRUE COPY OF THE JUDGMENT OF THE HON'BLE DIVISION BENCH IN WRIT APPEAL 1529/2019 DATED 01.07.2019

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