THAVANOOR SERVICE CO-OPERATIVE BANK LIMITED vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/5604/2020HC KeralaKLHC01015016202026 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 by 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's reasoning was based on the admission by the Standing Counsel that the facts of the present case were substantially similar to those in a previous Division Bench judgment (W.A. No. 1536 of 2019) which had granted similar relief. The ratio decidendi is that where facts are similar to a binding precedent directing early disposal of appeals and stay of recovery, such relief should be granted.

What were the facts?

The petitioner, Thavanoor Service Co-operative Bank Limited, filed a writ petition before the High Court of Kerala. The petition was filed against the Commissioner of Income Tax (Appeals) and the Income Tax Officer. The petitioner sought directions for the disposal of their statutory appeals pending before the Commissioner of Income Tax (Appeals). 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 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 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 statutory 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 of recovery proceedings during the pendency of the 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 and similar to the facts noted by the Division Bench in W.A. No. 1536 of 2019, implying agreement with the petitioner's reliance on that judgment.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5604 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.5604 OF 2020(A) PETITIONER/S: THAVANOOR SERVICE CO-OPERATIVE BANK LIMITED NO.P.516, THAVANOOR, PONNANI, MALAPPURAM DISTRICT, REPRESENTED BY ITS SECRETARY BY ADV. SRI.O.D.SIVADAS RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, KOZHIKODE - 673 001 2 THE INCOME TAX OFFICER WARD 4, TIRUR, MALAPPURAM DISTRICT, PIN 676 001 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 O.D.Sivadas 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)/ 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 COPY OF THE ASSESSMENT ORDER DATED 20.12.2019 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2017-18 EXHIBIT P2 COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2017-18 DATED 18.01.2020

Recent GST High Court judgments

Search GST case law →