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

WP(C)/5293/2020HC KeralaKLHC01014295202025 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 appeal filed by the petitioner at the earliest. The Court also ordered that recovery proceedings and the collection of tax assessed should be kept in abeyance pending the disposal of the appeal. This decision was based on the petitioner's reliance on a Division Bench judgment (W.A. No. 1536 of 2019) and the revenue's admission that the facts were substantially similar. The Court explicitly referred to a Full Bench decision reported in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287] as a guiding principle for the disposal of the appeal. The operative direction is to dispose of the appeal expeditiously and stay recovery during its pendency.

What were the facts?

The petitioner, The Neeloor Service Co-operative Bank Ltd., represented by its Secretary, filed a writ petition before the High Court of Kerala. The petition challenges an action by the Income Tax Officer and seeks relief concerning an appeal pending before the Commissioner of Income-Tax (Appeals). The petitioner relies on a previous judgment by a Division Bench of the same High Court 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 appeals. The respondent, the Income Tax Officer, represented by the Standing Counsel, admitted that the facts of the present case are substantially similar to those in the cited Division Bench judgment.

What were the issues?

1. Whether the recovery proceedings and collection of tax assessed should be kept in abeyance pending the disposal of the statutory appeal filed by the petitioner? 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 appeal. The petitioner relied on this precedent to argue for a similar direction in its case. The revenue, through the Standing Counsel, admitted that the facts of the present case were substantially the same as those considered 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.5293 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 TUESDAY, THE 25TH DAY OF FEBRUARY 2020 / 6TH PHALGUNA, 1941 WP(C).No.5293 OF 2020(J) PETITIONER/S: THE NEELOOR SERVICE CO-OPERATIVE BANK LTD. NO.K51, NEELOOR P.O., KOTTAYAM-686 651 REPRESENTED BY ITS SECRETARY MR. SHAJIMON P.S. 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 COMMISSIONER OF INCOME-TAX (APPEALS) PUBLIC LIBRARY BUILDING, SASTRI ROAD, KOTTAYAM-686 001. 2 INCOME TAX OFFICER WARD 3, INCOME TAX OFFICE, PUBLIC LIBRARY BUILDING, SHASTRI ROAD, KOTTAYAM-686 001. BY SRI.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.5293 OF 2020 2 JUDGMENT Dated this the 25th 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 Mavilayi Service Co- WP(C).No.5293 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.5293 OF 2020 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1

DATED 30.12.2019. EXHIBIT P2OF NOTICE OF DEMAND UNDER SECTION 156 DATED 30.12.2019. EXHIBIT P3OF APPEAL FILED IN FORM 34 DATED 31.1.2020. EXHIBIT P4OF STAY APPLICATION DATED 4.2.2020. EXHIBIT P5OF THE ORDER OF THE TRIBUNAL DATED 3.9.2018. EXHIBIT P6OF THE JUDGMENT OF THE HON'BLE DIVISION BENCH IN WRIT APPEAL 1529/2019 DATED 1.7.2019.

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