KODIMATHA CO-OPERATIVE BANK LTD. NO.376, vs. THE CENTRAL BOARD OF DIRECT TAXES,

WP(C)/5772/2020HC KeralaKLHC01015515202027 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition by directing 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 should be kept in abeyance pending the disposal of the appeal. This decision was based on the Full Bench decision reported in The Mavilayi Service Co-operative Bank Ltd, v. The Commissioner of Income Tax, Calicut, and the admission by the Standing Counsel that the facts were substantially similar to a previous writ appeal where similar directions were issued. The ratio decidendi is that where facts are similar to a precedent directing expeditious disposal of appeal and stay of recovery, such relief should be granted.

What were the facts?

The petitioner, Kodimatha Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala. The petitioner sought directions regarding its pending statutory appeal before the Commissioner of Income Tax (Appeals). The petitioner relied on a previous 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 appeal. The Standing Counsel for the respondents 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 statutory appeal filed by the petitioner before the Commissioner of Income Tax (Appeals) should be disposed of expeditiously? 2. Whether recovery proceedings and collection of assessed tax should be kept in abeyance pending the disposal of the statutory appeal? Assessee's Contention: The petitioner relied on the judgment in W.A. No. 1536 of 2019 and connected cases, arguing that the Division Bench directed the disposal of appeals and granted a stay on recovery proceedings during the pendency of the appeal. This implicitly suggests that the petitioner sought similar relief. Revenue's Contention: The Standing Counsel for the respondents admitted that the facts of the case were substantially the same as those in the cited writ appeal, indicating an agreement to follow the precedent set in that case.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5772 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.5772 OF 2020(V) PETITIONER/S: KODIMATHA CO-OPERATIVE BANK LTD. NO.376, KOTTAYAM SOUTH POST, PALLIPURATHUKAVU JN., KOTTAYAM- 686039, REPRESENTED BY ITS SECRETARY SMT. SUSY ANTONY. 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-110001, REPRESENTED BY ITS CHAIRMAN. 2 INCOME TAX OFFICER, WARD 2, INCOME TAX OFFICE, PUBLIC LIBRARY BUILDING, SASTRI ROAD, KOTTAYAM-686608. 3 COMMISSIONER OF INCOEM TAX (APPEALS), INCOME TAX OFFICE, SASTRI ROAD, KOTTAYAM-686608. 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.5772 OF 2020(V) 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.

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 Commissioner of Income Tax (Appeals)/3rd respondent to WP(C).No.5772 OF 2020(V) 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. S.V.BHATTI JUDGE JS 1[2019 (2) KHC 287]

WP(C).No.5772 OF 2020(V) 4

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE RETURN OF INCOME DATED 19/01/2018 FOR THE ASSESSMENT YEAR 2017-18 IN PAN-AAAAT8277F WITH ACKNOWLEDGEMENT NO.368566821190118. EXHIBIT P2 TRUE COPY OF THE ASSESSMENT ORDER NO. ITBA/AST/S/143(3)/2019-20/1022569273(1) DATED 18/12/2019 ISSUED FOR THE YEAR 2017-18 BY THE 2ND RESPONDENT. EXHIBIT P3 TRUE COPY OF THE APPEAL DATED 18/01/2020 FILED BEFORE THE 3RD RESPONDENT FOR THE YEAR 2017-18. EXHIBIT P4 TRUE COPY OF THE DEMAND NOTICE NO. ITBA/AST/S/156/2019-20/1022569320(1) IN PAN.AAAAT8277F DATED 18/12/2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P5 TRUE COPY OF THE STAY APPLICATION FILED ON 13/02/2020 BEFORE THE 3RD RESPONDENT IN EXT.P3 APPEAL.

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