OTTAPPALAM SERVICE CO-OP BANK LTD vs. THE INCOME TAX OFFICER

WP(C)/5630/2020HC KeralaKLHC01014936202026 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 directed that recovery proceedings and the collection of assessed tax should be kept in abeyance pending the disposal of these appeals. 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 [2019 (2) KHC 287] and the admission by the revenue that the facts were substantially similar to a previous Division Bench judgment. The Court followed the precedent set by the Division Bench in W.A. No.1536 of 2019.

What were the facts?

The petitioner, M/s. Ottappalam Service Co-op 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 a stay on recovery proceedings. 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 during the pendency of appeals. 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.

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? 2. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the statutory appeals filed by the petitioner at the earliest? Assessee's Contention: The assessee relied on the judgment dated 01.07.2019 in W.A No.1536 of 2019 and connected cases, arguing that the Division Bench had directed the disposal of appeals and granted a stay of recovery proceedings during the pendency of the appeal. The assessee implicitly sought similar relief. Revenue's Contention: The Standing Counsel for the revenue admitted that the facts of the case were substantially the same and similar to the facts 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.5630 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.5630 OF 2020(C) PETITIONER/S: M/S.OTTAPPALAM SERVICE CO-OP BANK LTD 23/650, BUS STAND BUILDING, MAIN ROAD, OTTAPPALAM, PALAKKAD- 679101, REPRESENTED BY ITS SECRETARY, SHRI. P RAMESH KUMAR. 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 INCOEM TAX(APPEALS) AAYAKAR BHAWAN, 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 for petitioner and Advocate Jose Joseph, 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)/ 1st 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 THE ASSESSMENT ORDER DATED 20.12.2019 FOR AY-2017-18 ALONG WITH DEMAND NOTICE 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 18.2.2020 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) OF THE ACT.

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