M/S.KARAKULAM SERVICE CO-OPERATIVE BANK LTD., vs. THE INCOME TAX OFFICER,

WP(C)/5936/2020HC KeralaKLHC01015786202028 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages

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What did the High Court hold?

The High Court of Kerala disposed of the writ petition by directing the Commissioner of Income Tax (Appeals) (2nd respondent) to consider and dispose of the statutory appeal filed by the petitioner at the earliest. The Court ordered that the recovery proceedings and collection of tax assessed should be kept in abeyance pending the disposal of the appeal. This decision was based on the admission by the revenue that the facts were similar to those in W.A. No. 1536 of 2019 and the reliance on the Full Bench decision in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287]. The operative direction is to dispose of the appeal expeditiously and stay recovery during its pendency.

What were the facts?

The petitioner, M/s. Karakulam 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 statutory appeal pending before the Commissioner of Income Tax (Appeals). The petitioner relied on a previous Division Bench judgment (W.A. No. 1536 of 2019) which directed the disposal of appeals and granted a stay on recovery proceedings during the pendency of the appeal. The Income Tax Officer, Ward 2(3), and the Commissioner of Income Tax (Appeals) were the respondents. 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 consider and 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, concerning procedural directions). Assessee's Contention: The petitioner, relying on W.A. No. 1536 of 2019, contended that the Division Bench directed disposal of appeals and granted a stay of recovery proceedings during the pendency of the appeal, and this principle should be applied. Revenue's Contention: The learned Standing Counsel for the respondents admitted that the facts of the case were substantially the same as in W.A. No. 1536 of 2019 and could be followed.

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Heard together (2 matters)

WP(C).No.5936 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 FRIDAY, THE 28TH DAY OF FEBRUARY 2020 / 9TH PHALGUNA, 1941 WP(C).No.5936 OF 2020(N) PETITIONER: M/S.KARAKULAM SERVICE CO-OPERATIVE BANK LTD., KP-1/382, KARAKULAM.P.O., NEDUMANGAD, TRIVANDRUM-695564, REPRESENTED BY ITS SECRETARY, SHRI K.PADMAKUMAR. BY ADVS. SRI.T.M.SREEDHARAN (SR.) SRI.V.P.NARAYANAN SMT.DIVYA RAVINDRAN RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD 2(3), AAYAKKAR BHAVAN, THIRUVANANTHAPURAM - 695003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM-695003. SRI. JOSE JOSEPH, SC SRI. CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.5936 OF 2020(N) 2 JUDGMENT Dated this the 28th day of February, 2020 Heard Sri. V.P.Narayanan, 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)/ 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 WP(C).No.5936 OF 2020(N) 3 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 SR

WP(C).No.5936 OF 2020(N) 4

Appendix — schedule of exhibits

APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER AND DEMAND NOTICE DATED 16.12.2019 ALONG WITH COMPUTATION OF INCOME ALONG WITH DEMAND OF INCOME TAX FOR AY 2017-18 BY THE 1ST RESPONDENT. EXHIBIT P2 TRUE COPY OF THE MEMORANDUM OF APPEAL E- FILED DATED 21.1.2020 FOR THE ASSESSMENT YEAR 2017-18 FILED BEFORE THE 2ND RESPONDENT. EXHIBIT P3 TRUE COPY OF THE STAY PETITION DATED 15.1.2020 FILED BY THE PETITIONER FOR AY- 2017-18 BEFORE THE 2ND RESPONDENT. SR //True copy// PA to Judge

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