CHATHANNOOR SERVICE CO-OPERATIVE BANK LTD NO.2544 vs. THE CENTRAL BOARD OF DIRECT TAXES

WP(C)/5531/2020HC KeralaKLHC01014745202026 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 ordered that recovery proceedings and collection of tax assessed be kept in abeyance pending the disposal of the appeal. This decision was made taking into account the Full Bench decision 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 writ appeal where similar directions were issued. The operative direction is to dispose of the appeal expeditiously and stay recovery.

What were the facts?

The petitioner, Chathannoor Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala. The petition was filed against the Central Board of Direct Taxes, the Income Tax Officer, Ward 1 and TPS, Kollam, and the Commissioner of Income Tax (Appeals), Thiruvananthapuram. The petitioner sought relief based on a previous judgment dated 01.07.2019 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 Commissioner of Income Tax (Appeals) should be directed to consider and dispose of the statutory appeal filed by the petitioner at the earliest, considering the Full Bench decision in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287]? (Question of law and fact) Assessee's Contention: The petitioner relies on the judgment in W.A. No.1536 of 2019 to contend that recovery proceedings should be stayed pending appeal disposal. Revenue's Contention: The Standing Counsel for the respondents admitted that the facts are similar to the cited case and agreed that the previous judgment can be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5531 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.5531 OF 2020(N) PETITIONER/S: CHATHANNOOR SERVICE CO-OPERATIVE BANK LTD NO.2544, CHATHANNOOR P. O., KOLLAM - 691 572, REPRESENTED BY ITS SECRETARY G. RAJENDRA PRASAD. BY ADVS. DR.K.P.PRADEEP SMT.T.THASMI RESPONDENT/S: 1 THE CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INIDIA, NORTH BLOCK, NEW DELHI - 110 001, REPRESENTED BY ITS CHAIRMAN. 2 INCOME TAX OFFICER, WARD 1 AND TPS, KOLLAM, INCOME TAX DEPARTMENT, AAYAKAR BHAVAN, INCOME TAX OFFICE, NEAR KARBALA JUNCTION, RAILWAY STATION ROAD, KOLLAM - 691 001. 3 COMMISSIONER OF INCOME TAX (APPEALS), THIRUVANANTHAPURAM, AAYAKAR BHAVAN, INCOME TAX OFFICE, KOWADIAR, THIRUVANANTHAPURAM - 695 003. 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.5531 OF 2020 2 JUDGMENT Dated this the 26th day of February 2020 Heard Sri. K.P.Pradeep, 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)/ 3rd 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 Mavilayi Service Co- WP(C).No.5531 OF 2020 3 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.5531 OF 2020 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1

OF THE ASSESSMENT ORDER NO.ITBA/AST/S/143(3)/2019- 20/1020773203(1) DATED 20.11.2019 ISSUED FOR THE YEAR 2017-18 BY THE 2ND RESPONDENT. EXHIBIT P2OF THE APPEAL DATED 12.12.2019 FILED BEFORE THE 3RD RESPONDENT FOR THE ASSESSMENT YEAR 2017-18. EXHIBIT P3OF THE DEMAND NOTICE NO.ITBA/AST/S/156/2019- 20/1020773401(1) DATED 20.11.2019 FOR THE YEAR 2017-18 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P4OF THE STAY APPLICATION FILED ON 20.2.2020 BEFORE THE 3RD RESPONDENT IN EXT. P2 APPEAL.

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