THE AVANEESWARAM SERVICE CO-OPERATIVE BANK LTD.NO.1847 vs. THE INCOME TAX OFFICER,

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WP(C)/5776/2020HC KeralaKLHC01015274202027 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. This decision was made taking note of the Full Bench decision reported in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut. The Court found the facts of the present case to be substantially similar to those in W.A. No. 1536 of 2019, which was relied upon by the petitioner. The ratio decidendi is that where facts are similar to a prior binding precedent that granted a stay of recovery pending appeal and directed early disposal, similar relief should be granted. The operative direction is to dispose of the appeal expeditiously and stay recovery.

What were the facts?

The petitioner, The Avaneeswaram Service Co-operative Bank Ltd. No. 1847, filed a writ petition before the Kerala High Court. The petition challenges an order or action by the Income Tax Officer, Ward-4, Kollam Range, and seeks relief concerning proceedings before the Commissioner of Income Tax (Appeals). The petitioner relies on a judgment dated July 1, 2019, in W.A. No. 1536 of 2019 and connected cases, where a Division Bench 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 are substantially similar to those in the cited writ appeal.

What were the issues?

1. Whether the recovery proceedings and collection of assessed tax should be kept in abeyance pending the disposal of the statutory appeal filed by the petitioner? Assessee's Contention: The petitioner relies on the judgment in W.A. No. 1536 of 2019 and connected cases, which directed the disposal of appeals and granted a stay of recovery proceedings during the pendency of the appeal. The petitioner argues that similar relief should be granted in their case due to the similar facts. Revenue's Contention: The Standing Counsel for the respondents admitted that the facts of the case are substantially the same and similar to the facts noted by the Division Bench in W.A. No. 1536 of 2019, implying that the precedent can be followed.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
-1- WP(C) NO.5776 OF 2020 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.5776 OF 2020(V) PETITIONER/S: THE AVANEESWARAM SERVICE CO-OPERATIVE BANK LTD.NO.1847 REPRESENTED BY ITS SECRETARY, KUNNICODE P O, PATHANAPURAM, KOLLAM DISTRICT, PIN-691508. BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD-4, OFFICE OF THE INCOME TAX OFFICER, KOLLAM RANGE, AAYAKAR BHAVAN, KARBALA JUNCTION, KOLLAM-PIN- 691001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, PIN-695003. SC CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: -2- WP(C) NO.5776 OF 2020

JUDGMENT Heard Adv.T.R Harikumar, for the petitioner and Adv.Christopher Abraham, the 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)/ 2nd respondent to -3- WP(C) NO.5776 OF 2020 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, Calicut 1 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]

-4- WP(C) NO.5776 OF 2020

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 29.11.2019 EXHIBIT P2 A TRUE COPY OF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 29.11.2019. EXHIBIT P3 A TRUE COPY OF THE ONLINE APPEAL DATED 29.12.2019 ALONG WITH GROUNDS OF APPEAL, FILED BEFORE THE 2ND RESPONDENT, AGAINST EXT P1, ASSESSMENT ORDER. EXHIBIT P4 A TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER IN EXT P3 APPEAL DATED 28.01.2020. EXHIBIT P5 A TRUE COPY OF THE JUDGMENT DATED 19.07.2019 IN WA NO.1639 OF 2019. EXHIBIT P6 A TRUE COPY OF THE JUDGMENT DATED 17.02.2020 IN WP(C) NO.4433 OF 2020.

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