MUTHOLY SERVICE CO-OPERATIVE BANK LTD., vs. THE COMMISSIONER OF INCOME TAX (APPEALS),

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WP(C)/5513/2020HC KeralaKLHC01014727202026 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the Commissioner of Income Tax (Appeals) to consider and dispose of the statutory appeal filed by the petitioner at the earliest. The Court ordered that recovery proceedings and the collection of assessed tax should be kept in abeyance pending the disposal of the appeal. This decision was based on the similarity of facts to the Division Bench judgment in W.A. No. 1536 of 2019 and a Full Bench decision in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287]. The principle established is that where facts are similar to a binding precedent directing early disposal of appeals and stay of recovery, such relief should be granted. The Court did not decide on the merits of the appeal itself, but rather on the procedural aspect of its disposal and interim relief.

What were the facts?

The petitioner, Mutholy Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala. The petitioner sought directions for the disposal of its statutory appeal pending before the Commissioner of Income Tax (Appeals), Kottayam. The petitioner relied on a previous judgment by a Division Bench in W.A. No. 1536 of 2019, which directed the disposal of appeals and granted a stay on recovery proceedings during the pendency of the appeal. The Revenue's counsel admitted that the facts of the present case were substantially similar to those in the cited Division Bench judgment. The assessment years and the specific tax amount in dispute were not recorded in the judgment.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the statutory appeal filed by the petitioner at the earliest, considering the facts are similar to a previous Division Bench judgment (W.A. No. 1536 of 2019)? (Question of law and fact) 2. Whether recovery proceedings and collection of assessed tax should be kept in abeyance pending the disposal of the statutory appeal? (Question of law and fact) Assessee's contentions: The petitioner contended that the Division Bench in W.A. No. 1536 of 2019 had directed the disposal of appeals and granted a stay on recovery proceedings. They argued that this precedent should be followed in their case, given the similar facts. Revenue's contentions: The Revenue's counsel admitted that the facts of the case were substantially the same as those 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.5513 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.5513 OF 2020(L) PETITIONER/S: MUTHOLY SERVICE CO-OPERATIVE BANK LTD., VII/17, THEKKEMMURY, ETTUMANUR ROAD, PULIYANNOOR P.O., PALA - 686 573, REPRESENTED BY ITS SECRETARY MR.THOMAS P.T. BY ADVS. SRI.A.KUMAR SRI.P.J.ANILKUMAR SMTG.MINI(1748) SRI.P.S.SREE PRASAD SHRI.ABRAHAM JOB SRI.AJAY V.ANAND RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS), KOTTAYAM - 686 001. 2 INCOME TAX OFFICER, WARD-3, KOTTAYAM - 686 001. BY SC SRI.JOSE JOSEPH 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.5513 OF 2020 2 JUDGMENT Dated this the 26th day of February 2020 Heard Sri. A.Kumar, the learned counsel for the petitioner and Sri. Jose Joseph, 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)/ 1st 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 WP(C).No.5513 OF 2020 3 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 appeal. Sd/- S.V.BHATTI JUDGE uu 27.02.2020 WP(C).No.5513 OF 2020 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1

FOR THE ASSESSMENT YEAR 2017-18 EXHIBIT P2OF THE APPEAL MEMORANDUM DATED 24/01/2020. EXHIBIT P3OF THE STAY PETITION DATED 04/02/2020. EXHIBIT P4OF THE DEMAND NOTICE EXHIBIT P5 COPY OF THE JUDGMENT IN WRIT APPEAL 1529/2019 DATED 01/07/2019.

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