KUMARANELLUR CO OPERATIVE SERVICE BANK LTD., vs. THE INCOME TAX OFFICER,

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WP(C)/5632/2020HC KeralaKLHC01014945202026 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 should be kept in abeyance pending the disposal of these appeals. 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 [2019 (2) KHC 287] and the admission by the revenue that the facts were similar to a previous Division Bench judgment. The Court did not explicitly leave any issue undecided.

What were the facts?

The petitioner, M/s. Kumaraneullur Co-operative Service Bank Ltd., represented by its Secretary, filed a writ petition before the High Court of Kerala. The petition was filed against the Income Tax Officer and the Commissioner of Income Tax (Appeals). The petitioner relied on a 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 of recovery proceedings 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 judgment.

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 appeals filed by the petitioner? (Question of law and fact, turning on principles of natural justice and the High Court's supervisory jurisdiction). Assessee's Contention: The petitioner argued that based on the Division Bench judgment in W.A. No. 1536 of 2019, the Court should direct the disposal of their appeal and grant a stay on recovery proceedings during the appeal's pendency. Revenue's Contention: The Standing Counsel for the respondents admitted that the facts were similar to the cited case and did not oppose the petitioner's prayer.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5632 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.5632 OF 2020(D) PETITIONER/S: M/S.KUMARANELLUR CO OPERATIVE SERVICE BANK LTD., F.970, KUMARANELLUR, PALAKKAD-679552, REPRESENTED BY ITS SECRETARY, SRI. M.A. SREENIVASAN. BY ADVS. SRI.T.M.SREEDHARAN (SR.) SMT.NISHA JOHN SRI.V.P.NARAYANAN RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD-3, PALAKKAD-678014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, THRISSUR-680001. OTHER PRESENT: SC JOSE JOSEPH 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 Nisha John, counsel for petitioner and Advocate Jose Joseph, 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- 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 18/12/2019 OF AY-2017-18 ALONG WITH DEMAND NOTICE AND COMPUTATION STATEMENT PASSED BY THE 1ST RESPONDENT. EXHIBIT P2 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 12/01/2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY 2017-18. EXHIBIT P3 TRUE COPY OF THE STAY PETITION DATED 18/02/2020 FILED BY THE PETITIONER FOR AY-2017-18 BEFORE THE 2ND RESPONDENT. EXHIBIT P4 TRUE COPY OF THE APPLICATION DATED 18/02/2020 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT U/S.220(6).

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