THE MATHRA SERVICE CO-OPERATIVE BANK LTD. NO. 314 vs. THE INCOME TAX OFFICER

WP(C)/5493/2020HC KeralaKLHC01014688202026 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court directed the Commissioner of Income Tax (Appeals) (2nd respondent) to consider and dispose of the statutory appeal filed by the petitioner at the earliest. The Court specifically instructed the Commissioner to take 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]. Furthermore, the Court ordered that recovery proceedings and the collection of tax assessed should be kept in abeyance pending the disposal of the appeal. The reasoning was based on the admission by the revenue that the facts were similar to a previous judgment where such directions were granted. The operative direction is to dispose of the appeal and stay recovery.

What were the facts?

The petitioner, The Mathra Service Co-operative Bank Ltd., represented by its Secretary, filed a writ petition before the High Court of Kerala. The petition was directed against the Income Tax Officer and the Commissioner of Income Tax (Appeals). The petitioner sought a direction for the disposal of their statutory appeal pending before the Commissioner of Income Tax (Appeals) and a stay on recovery proceedings during the pendency of the appeal. The petitioner relied on a Division Bench 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 of recovery. 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 Commissioner of Income Tax (Appeals) should be directed to consider and dispose of the statutory appeal filed by the petitioner at the earliest, taking note of the Full Bench decision in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut? 2. Whether recovery proceedings and collection of tax assessed should be kept in abeyance pending the disposal of the statutory appeal? Assessee's Contention: The petitioner contended that the facts of their case are substantially similar to those in W.A. No.1536 of 2019, where the Division Bench directed the disposal of appeals and granted a stay on recovery proceedings. They relied on this judgment to support their prayer. Revenue's Contention: The learned Standing Counsel for the respondents 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, and therefore, the said judgment could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5493 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.5493 OF 2020(J) PETITIONER/S: THE MATHRA SERVICE CO-OPERATIVE BANK LTD. NO. 314, REPRESENTED BY ITS SECRETARY, MATHRA P.O., PUNALUR (VIA), KOLLAM DISTRICT-691 333. BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD-2, OFFICE OF THE INCOME TAX OFFICER, AAYAKAR BHAVAN, KARBALA JUNCTION, KOLLAM, PIN-691 001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, PIN-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.5493 OF 2020 2 JUDGMENT Dated this the 26th day of February 2020 Heard Sri. T.R.Harikumar, 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)/ 2nd 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.5493 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.5493 OF 2020 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1

AOF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 6.12.2019. EXHIBIT P2 AOF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 6.12.2019. EXHIBIT P3 AOF THE ONLINE APEAL DATED 25.12.2019 ALONG WITH GROUNDS OF APPEAL, FILED BEFORE THE 2ND RESPONDENT, AGAINST EXT.P1 ASSESSMENT ORDER. EXHIBIT P4 AOF THE STAY PETITION FILED BY THE PETITIONER IN EXT.P3 APPEAL SUBMITTED ON 14.1.2020. EXHIBIT P5 AOF THE JUDGMETN DATED 19.7.2019 IN W.A.NO.1639 OF 2019. EXHIBIT P6 AOF THE JUDGMENT DATED 17.2.2020 IN WPC NO.4433 OF 2020.

Recent GST High Court judgments

Search GST case law →