NARUVAMOODU SERVICE CO-OPERATIVE BANK LTD. NO.160 vs. THE INCOME TAX OFFICER

WP(C)/5529/2020HC KeralaKLHC01014704202026 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) 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. This decision was made taking note of the Full Bench decision in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287]. The Court found that the facts were substantially similar to a previous Division Bench judgment (W.A. No. 1536 of 2019), which supported the grant of such directions. The ratio decidendi is that where facts are similar to a binding precedent directing expeditious disposal of appeal and stay of recovery, similar relief should be granted.

What were the facts?

The petitioner, Naruvamoodu 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), the second respondent. 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 proceedings during the pendency of the appeal. The Standing Counsel for the revenue admitted that the facts of the present case were substantially similar to those in the cited Division Bench judgment. The assessment year(s) and the specific order or action under challenge are not explicitly detailed in the provided text, nor is the amount in dispute.

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? 2. Whether recovery proceedings and collection of assessed tax should be kept in abeyance pending the disposal of the petitioner's statutory appeal? 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 the appeal. The petitioner relied on this precedent to argue for similar relief. Revenue's Contentions: The learned Standing Counsel for the respondents admitted that the facts of the present case were substantially the same and similar to those noted by the Division Bench in W.A. No. 1536 of 2019, implying that the precedent could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5529 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 WEDNESDAY, THE 26TH DAY OF FEBRUARY 2020 / 7TH PHALGUNA, 1941 WP(C).No.5529 OF 2020(M) PETITIONER/S: NARUVAMOODU SERVICE CO-OPERATIVE BANK LTD. NO.160, REPRESENTED BY ITS SECRETARY, NARUVAMOODU.P.O, THIRUVANANTHAPURAM DISTRICT PIN-695020 BY ADVS. SRI.ARJUN RAGHAVAN SRI.ADITHYA RAJEEV RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD-2(2), OFFICE OF THE INCOME TAX OFFICER, AAYAKAR BHAVAN, KOWDIAR.P.O, THIRUVANANTHAPURAM PIN-695003 2 THE COMMISSIOINER OF INCOME TAX(APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM PIN-695003 BY SC SRI.CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.5529 OF 2020 2 JUDGMENT Dated this the 26th day of February 2020 Heard Sri. Arjun Raghavan, 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)/ 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 WP(C).No.5529 OF 2020 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 uu 27.02.2020 WP(C).No.5529 OF 2020 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1

AOF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 23.12.2019 EXHIBIT P2 AOF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 23.12.2019 EXHIBIT P3 AOF THE ONLINE APPEAL DATED 22.01.2020 ALONG WITH GROUNDS OF APPEAL, FILED BEFORE THE 2ND RESPONDENT, AGAINST EXT.P1 ASSESSMENT ORDER EXHIBIT P4 AOF THE STAY PETITION FILED BY THE PETITIONER IN EXT.P3 APPEAL SUBMITTED ON 24.02.2020 EXHIBIT P5 AOF THE JUDGMENT DATED 19.07.2019 IN W.A. NO.1639/2019 EXHIBIT P6 AOF THE JUDGMENT DATED 17.02.2020 IN WP(C)NO.4433/2020

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