THE CHALAKUDY SERVICE CO-OPERATIVE BANK LIMITED vs. THE INCOME TAX OFFICER

WP(C)/5720/2020HC KeralaKLHC01015294202027 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), the second 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 based on the petitioner's reliance on a previous Division Bench judgment and the Standing Counsel's admission that the facts were substantially similar. The Court specifically referred to the Full Bench decision reported in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut, as a basis for its directions. No issues were expressly left undecided.

What were the facts?

The petitioner, The Chalakudy Service Co-operative Bank Limited, represented by its Secretary, filed a writ petition before the High Court of Kerala. The petitioner sought directions regarding its pending appeal before the Commissioner of Income Tax (Appeals). The petitioner relied on a previous 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 appeals. The Standing Counsel for the respondents admitted that the facts of the present case were substantially similar to those considered in the aforementioned 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? (Question of law and fact, concerning procedural directions). 2. Whether recovery proceedings and collection of tax assessed should be kept in abeyance pending the disposal of the appeal? (Question of law and fact, concerning interim relief). Assessee's Contentions: The petitioner contended that a Division Bench judgment in W.A. No. 1536 of 2019 and connected cases had directed the disposal of appeals and granted a stay of recovery proceedings during the pendency of appeals. They argued that this precedent should be followed. Revenue's Contentions: The Standing Counsel for the respondents admitted that the facts of the case were substantially the same as those in W.A. No. 1536 of 2019, implying agreement with the application of the precedent.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5720 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 THURSDAY, THE 27TH DAY OF FEBRUARY 2020 / 8TH PHALGUNA, 1941 WP(C).No.5720 OF 2020(L) PETITIONER/S: THE CHALAKUDY SERVICE CO-OPERATIVE BANK LIMITED NO. R. 192, CHALAKUDY P.O. THRISSUR DISTRICT, 680 307, REPRESENTED BY ITS SECRETARY SMT. V.K. ELSY. BY ADVS. SRI.K.S.HARIHARAN NAIR SMT.G.REMADEVI SMT.HARIMA HARIHARAN RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 2 (5), AAYAKAR BHAVAN, SATHAN THAMPURAN NAGAR, THRISSUR 680 001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, THRISSUR 680 001. 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.5720 OF 2020(L) JUDGMENT Dated this the 27th day of February 2020 Heard Adv.K.S Hariharan Nair, for the petitioner and Adv.Jose Joseph, 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 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 WP(C).No.5720 OF 2020(L) 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 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. S.V.BHATTI JUDGE JS 1[2019 (2) KHC 287]

WP(C).No.5720 OF 2020(L) - 4 -

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER DATED 23.12.2019 ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2012-13. EXHIBIT P1 (A) COPY OF ASSESSMENT ORDER DATED 23.12.2019 ISSUED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2017-18. EXHIBIT P2 COPY OF APPEAL MEMORANDUM DATED 20.01.2020 AGAINST EXT. P1. EXHIBIT P2 (A) COPY OF APPEAL MEMORANDUM DATED 21.01.2020 AGAINST EXT. P1.(A) EXHIBIT P3 COPY OF APPEAL STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 21.0.2.2020 IN EXT. P1 APPEAL. EXHIBIT P3 (A) COPY OF APPEAL STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 21.02.2020 IN EXT. P1 (A) APPEAL.

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