THE ADICHANALLOOR FARMERS SERVICE CO-OPERATIVE BANK LTD. 2609, vs. INCOME TAX OFFICER,

WP(C)/5640/2020HC KeralaKLHC01015040202026 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 appeals 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 these appeals. The reasoning for this decision was based on the admission by the revenue's Standing Counsel that the facts of the case were substantially similar to those in a previous Division Bench judgment (W.A. No.1536 of 2019). The Court also noted the relevance 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 operative direction is to dispose of the appeals and stay recovery.

What were the facts?

The petitioner, Adichanalloor Farmers Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala. The petitioner sought a direction for the disposal of their statutory appeals 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 and connected cases, which directed the disposal of appeals and granted a stay on recovery during the pendency of appeals. The Standing Counsel for the respondents admitted that the facts of the present case were substantially similar to those in the cited Division Bench judgment.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the statutory appeals filed by the petitioner at the earliest? 2. Whether recovery proceedings and collection of assessed tax should be kept in abeyance pending the disposal of the petitioner's appeals? Assessee's Contentions: The petitioner contended that a Division Bench of the High Court in W.A. No.1536 of 2019 and connected cases had directed the disposal of appeals and granted a stay on recovery proceedings during the pendency of appeals. They argued that this precedent should be followed in their case. Revenue's Contentions: The Standing Counsel for the respondents admitted that the facts of the present case were substantially the same as those considered by the Division Bench in W.A. No.1536 of 2019, implying that the principles laid down in that judgment could be applied.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5640 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 WEDNESDAY, THE 26TH DAY OF FEBRUARY 2020 / 7TH PHALGUNA, 1941 WP(C).No.5640 OF 2020(D) PETITIONER/S: THE ADICHANALLOOR FARMERS SERVICE CO-OPERATIVE BANK LTD. 2609,ADICHANALLOOR, KOLLAM, PIN-691573, REPRESENTED BY ITS SECRETARY, MR. G. SHAJIKUMAR, AGED 49 YEARS, S/O. GOPINATHAN ACHARY, RESIDING AT SHAJI NIVAS, PLAKKADU, ADICHANALLOOR P.O., KOLLAM. BY ADVS. SMT.A.JANI SMT.NISA FASIL(KOLLAM) SRI.SAJU WAHAB RESPONDENT/S: 1 INCOME TAX OFFICER, WARD 4, OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX, KOLLAM RANGE, AAYANKAR BHAVAN, KARBALA JUNCTION, KOLLAM- 691001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), OFFICE OF CHIEF COMMISSIONER OF INCOME TAX (APPEALS), AYYANKAR BHAVAN, KAWADIYAR JUNCTION, THIRUVANANTHAPURAM-695003. OTHER PRESENT: SC CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

-2- J U D G M E N T Dated this the 26th day of February 2020 Heard Advocate Jani A., counsel for petitioner and Advocate Christopher Abraham, 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 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.

-3- Hence, the writ petition is disposed of directing the Commissioner of Income Tax (Appeals)/ 2nd respondent to consider and dispose of the statutory appeals 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 [2019 (2) KHC 287] and to keep in abeyance recovery proceedings and collection of tax assessed, pending disposal of such appeals. S.V.BHATTI JUDGE jjj -4-

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF ASSESSMENT ORDER DATED 30/11/2019 ISSUED BY FIRST RESPONDENT. EXHIBIT P2 TRUE COPY OF APPEAL AGAINST EXHIBIT P1 PREFERRED ON 27/12/2019 BEFORE SECOND RESPONDENT. EXHIBIT P3 TRUE COPY OF STAY PETITION IN EXHIBIT P2 APPEAL DATED 10/02/2020.

Recent GST High Court judgments

Search GST case law →