CHITHARA SERVICE CO-OPERATIVE BANK LTD vs. THE CENTRAL BOARD OF DIRECT TAXES

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WP(C)/5999/2020HC KeralaKLHC01015855202028 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages
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What did the High Court hold?

The High Court held that the writ petition could be disposed of by following the precedent set in W.A. No. 1536 of 2019. The Court directed the Commissioner of Income Tax (Appeals) (3rd 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 assessed tax be kept in abeyance pending the disposal of the appeal. The reasoning was based on the admission by the revenue that the facts of the present case were substantially similar to those in the earlier writ appeal, which had granted similar relief. The principle established is that where facts are similar to a binding precedent, similar relief should be granted, including the stay of recovery during the pendency of an appeal.

What were the facts?

The petitioner, Chithara 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 in W.A. No. 1536 of 2019 and connected cases, which directed the disposal of appeals and granted a stay of recovery during the pendency of appeals. The Income Tax Department's Standing Counsel admitted that the facts of the present case were substantially similar to those in the cited writ appeal.

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 and fact, concerning procedural fairness and administrative efficiency). 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, concerning the balance of convenience and the right to effective redressal). Assessee's contentions: The petitioner argued that based on the Division Bench's decision in W.A. No. 1536 of 2019, the court should direct the disposal of its appeal and grant a stay on recovery. The petitioner relied on the principle that recovery should be stayed during the pendency of an appeal, especially when the facts are similar to a precedent. Revenue's contentions: The learned Standing Counsel for the respondents admitted that the facts of the case were substantially the same as those considered by the Division Bench in W.A. No. 1536 of 2019 and agreed that the said judgment could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5999 OF 2020
W.A No.1536 of 2019

Read from the judgment's own cause title. This page is filed under one of them.

Cause title — parties, addresses and appearances
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.5999 OF 2020(Y) PETITIONER: CHITHARA SERVICE CO-OPERATIVE BANK LTD NO.2818, SERVICE CO-OPERATIVE BANK BUILDING, MAIN ROAD, CHITHARA P.O., KOLLAM - 691 559 REPRESENTED BY ITS SECRETARY SUBHA C C BY ADVS. DR.K.P.PRADEEP SMT.T.THASMI RESPONDENTS: 1 THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE, MINISTRY OF FINANCE GOVERNMENT OF INDIA, NORTH BLOCK NEW DELHI – 110001, REPRESENTED BY ITS CHAIRMAN 2 INCOME TAX OFFICER, WARD 1 AND TPS, KOLLAM, INCOME TAX DEPARTMENT, AAYAKAR BHAVAN, INCOME TAX OFFICE, NEAR KARBALA JUNCTION, RAILWAY STATION ROAD, KOLLAM - 691 001 3 COMMISSIONER OF INCOME TAX (APPEALS), THIRUVANANTHAPURAM, AAYAKAR BHAVAN, INCOME TAX OFFICE, KOWADIAR, THIRUVANANTHAPURAM - 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.5999/2020(Y) 2 JUDGMENT Dated this the 28th day of February, 2020 Heard Dr. K.P.Pradeep, the learned counsel for the petitioner and Sri. Christopher Abraham, the learned Standing Counsel for respondents. 2. 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. 3. 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)/ 3rd 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.5999/2020(Y) 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. Sd/- S.V. BHATTI JUDGE SR WP(C).No.5999/2020(Y) 4 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE RETURN OF INCOME DATED 30- 03-2019 FOR THE ASSESSMENT YEAR 2017-18 IN PAN AAABC0017F EXHIBIT P2

OF THE ASSESSMENT ORDER ITBA/AST/S/143(3)/2019-20/1022976271(1) DATED 24-12-2019 ISSUED FOR THE YEAR 2017- 18 BY THE 2ND RESPONDENT EXHIBIT P3OF THE APPEAL DATED 24-02-2020 FILED BEFORE THE 3RD RESPONDENT FOR THE ASSESSMENT YEAR 2017-18 EXHIBIT P4OF THE DEMAND NOTICE NO.ITBA/AST/S/156/2019- 20/1022976329(1)DATED 24-12-2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT EXHIBIT P5OF THE STAY APPLICATION FILED ON 24-02-2020 BEFORE THE 3RD RESPONDENT IN EXT. P3 APPEAL SR //// PA to Judge

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