THE ARUVIKKARA FARMERS SERVICE CO-OPERATIVE BANK LTD.NO.603 vs. THE INCOME TAX OFFICER

WP(C)/5958/2020HC KeralaKLHC01015704202028 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages

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What did the High Court hold?

The High Court directed the Commissioner of Income Tax (Appeals) to consider and dispose of the statutory appeal filed by the petitioner at the earliest. The Court also ordered that recovery proceedings and collection of assessed tax 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 Court took 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 principle is that where facts are similar to a precedent and the revenue does not contest, similar relief should be granted, including a stay on recovery pending appeal resolution.

What were the facts?

The petitioner, Aruvikara Farmers 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) and for a stay on recovery proceedings. 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 during the pendency of appeals. The Income Tax Officer and the Commissioner of Income Tax (Appeals) are the respondents. The assessment years 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 pending before the Commissioner of Income Tax (Appeals)? (Question of law) 2. Whether the petitioner is entitled to a stay of recovery proceedings and collection of assessed tax pending the disposal of its appeal? (Question of law) Assessee's Contentions: The petitioner contended that the facts of its case are substantially similar to those in W.A. No. 1536 of 2019, where the Division Bench directed the disposal of appeals and granted a stay of recovery. The petitioner relied on this judgment. Revenue's Contentions: The learned Standing Counsel for the respondents admitted that the facts of the case are substantially the same as in W.A. No. 1536 of 2019 and that the earlier judgment can be followed.

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Heard together (2 matters)

WP(C).No.5958 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.5958 OF 2020(T) PETITIONER: THE ARUVIKKARA FARMERS SERVICE CO-OPERATIVE BANK LTD.NO.603, REPRESENTED BY ITS MANAGING DIRECTOR, ARUVIKKARA P.O, THIRUVANANTHAPURAM DISTRICT 695 564 BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENTS: 1 THE INCOME TAX OFFICER, WARD-2(3), OFFICE OF THE INCOME TAX OFFICER, AAYAKAR BHAVAN, KAWDIAR P.O, THIRUVANANTHAPURAM PIN 695 003 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM PIN - 695 003 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.5958 OF 2020(T) 2 JUDGMENT Dated this the 28th day of February, 2020 Heard Sri.T.R.Harikumar, the learned counsel for the petitioner and 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 Bench decision reported in The WP(C).No.5958 OF 2020(T) 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.5958 OF 2020(T) 4

Appendix — schedule of exhibits

APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 16-12-2019 EXHIBIT P2 A TRUE COPY OF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 16- 12-2019 EXHIBIT P3 A TRUE COPY OF THE ONLINE APPEAL DATED 14- 01-2020 FILED AGAINST EXT-P1 ASSESSMENT ORDER, BEFORE THE 2ND RESPONDENT EXHIBIT P4 A TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER IN EXT P3 APPEAL DATED 12- 02-2020 EXHIBIT P5 A TRUE COPY OF THE JUDGMENT DATED 19-07- 2019 IN W.A NO. 1639 OF 2019 EXHIBIT P6 A TRUE COPY OF THE JUDGMENT DATED 17-02- 2020 IN WP(C) NO. 4433 OF 2020 SR //True copy// PA to Judge

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