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

WP(C)/5794/2020HC KeralaKLHC01015516202027 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages

AI SummaryRemanded

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 the collection of assessed tax be kept in abeyance pending the disposal of the appeal. The reasoning was based on the admission by the Standing Counsel that the facts of the present case were substantially similar to those in W.A. No. 1536 of 2019, where a similar direction was issued. The Court explicitly referred to the Full Bench decision in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut, for guidance in disposing of the appeal. The operative direction is to dispose of the appeal expeditiously and to stay recovery until then.

What were the facts?

The petitioner, Ullala 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 judgment of the Division Bench in W.A. No. 1536 of 2019, which directed the disposal of appeals and granted a stay on recovery during the pendency of the appeal. The Standing Counsel for the respondents admitted that the facts of the present case were substantially similar to those in the cited 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 and the relevant precedents? (Question of law and fact, turning on principles of natural justice and procedural fairness). 2. Whether recovery proceedings and collection of assessed tax should be kept in abeyance pending the disposal of the statutory appeal? (Question of law and fact, turning on the power of the appellate authority and the High Court to grant interim relief). Assessee's Contentions: The petitioner argued that the Division Bench in W.A. No. 1536 of 2019 had directed the disposal of appeals and granted a stay of recovery proceedings during the pendency of the appeal, and that the present case was factually similar. The petitioner relied on the judgment dated 01.07.2019 in W.A No.1536 of 2019 and connected cases. Revenue's Contentions: The Standing Counsel for the respondents admitted that the facts of the case were substantially the same and similar to those noted by the Division Bench in W.A. No. 1536 of 2019 and could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5794 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 THURSDAY, THE 27TH DAY OF FEBRUARY 2020 / 8TH PHALGUNA, 1941 WP(C).No.5794 OF 2020(Y) PETITIONER/S: ULLALA SERVICE CO-OPERATIVE BANK LTD. NO.1142, THALAYAZHAM POST, VAIKOM, KOTTAYAM - 686 607 REPRESENTED BY ITS SECRETARY MIDHUNLAL K.N. BY ADVS. DR.K.P.PRADEEP SRI.T.T.BIJU SMT.T.THASMI RESPONDENT/S: 1 THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE, MINISTRY OF FINANCE GOVERNMENT OF INDIA, NORTH BLOCK NEW DELHI - 110 001 REPRESENTED BY ITS CHAIRMAN 2 INCOME TAX OFFICER WARD 2, INCOME TAX OFFICE, PUBLIC LIBRARY BUILDING, SASTRI ROAD, KOTTAYAM - 686 608 3 COMMISSIONER OF INCOME TAX (APPEALS) INCOME TAX OFFICE, SASTRI ROAD, KOTTAYAM - 686 608 SC JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.5794 OF 2020(Y) 2 JUDGMENT Dated this the 27th day of February 2020 Heard Dr.K.P Pradeep, the counsel for petitioner and Adv.Jose Joseph, 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 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 WP(C).No.5794 OF 2020(Y) 3 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 Mavilayi Service Co-operative Bank Ltd, v. The Commissioner of Income Tax, Calicut1 and to keep in abeyance recovery proceedings and collection of tax assessed, pending disposal of such appeal. Sd/- S.V.BHATTI JUDGE JS 1[2019 (2) KHC 287] WP(C).No.5794 OF 2020(Y) 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE RETURN OF INCOME DATED 09-02-2018 FOR THE ASSESSMENT YEAR 2017-18 IN PAN:AAAAU0704G WITH ACKNOWLEDGEMENT NO.391001851090218 EXHIBIT P2

OF THE ASSESSMENT ORDER NO.ITBA/AST/S/143(3)/2019- 20/1023317793(1) DATED 28-12-2019 ISSUED FOR THE YEAR 2017-18 BY THE 2ND RESPONDENT EXHIBIT P3OF THE APPEAL DATED 31-01- 2020 FILED BEFORE THE 3RD RESPONDENT FOR THE YEAR 2017-18 EXHIBIT P4OF THE DEMAND NOTICE NO.ITBA/AST/S/156/2019-20/1023320450(1) IN PAN:AAAAU0704G DATED 28-12-2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT EXHIBIT P5OF THE STAY APPLICATION DATED 24-02-2020 BEFORE THE 3RD RESPONDENT IN EXT P3 APPEAL

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