THE NELLIMOODU SERVICE CO-OPERATIVE BANK LTD.NO.2639 vs. THE INCOME TAX OFFICER,

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WP(C)/5287/2020HC KeralaKLHC01014185202025 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) (the 2nd respondent) to consider and dispose of the statutory appeal filed by the petitioner at the earliest. The Court also directed that recovery proceedings and the collection of tax assessed be kept in abeyance pending the disposal of the appeal. This decision was based on the admission by the revenue's counsel that the facts of the present case were substantially similar to those in W.A. No. 1536 of 2019 and connected cases, and the reliance on the Full Bench decision reported in The Mavilayi Service Co-operative Bank Ltd. v. The Commissioner of Income Tax, Calicut [2019 (2) KHC 287]. The ratio decidendi is that where facts are similar to a precedent and the revenue concedes to follow it, the High Court will direct expeditious disposal of the appeal and stay recovery pending such disposal.

What were the facts?

The petitioner, The Nellimoodu Service Co-operative Bank Ltd., represented by its Secretary, filed a writ petition before the High Court of Kerala. The petition challenges an order or action by the Income Tax Officer (Ward 2(2)) and seeks relief concerning proceedings before the Commissioner of Income Tax (Appeals). The petitioner relies 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 proceedings during the pendency of appeals. The Standing Counsel for the respondents 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 petitioner is entitled to a direction for the disposal of their statutory appeal by the Commissioner of Income Tax (Appeals) at the earliest, considering the pendency of similar matters before the High Court? 2. Whether the petitioner is entitled to a stay of recovery proceedings and collection of tax assessed pending the disposal of their statutory appeal? Assessee's Contentions: The petitioner relies on the judgment in W.A. No. 1536 of 2019 and connected cases, wherein the Division Bench directed the disposal of appeals and granted a stay of recovery proceedings during the pendency of the appeal. They argue that their case is factually similar and should be treated accordingly. Revenue's Contentions: The Standing Counsel for the respondents admitted that the facts of the case are substantially the same as those noted by the Division Bench in W.A. No. 1536 of 2019 and agreed that the said judgment can be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5287 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.5287 OF 2020(I) PETITIONER/S: THE NELLIMOODU SERVICE CO-OPERATIVE BANK LTD.NO.2639, REPRESENTED BY ITS SECRETARY, NELLIMOODU P.O. THIRUVANANTHAPURAM DISTRICT 695 524. BY ADVS. SRI.T.R.HARIKUMAR SRI.ARJUN RAGHAVAN RESPONDENT/S: 1 THE INCOME TAX OFFICER, WARD 2 (2), OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX, AAYAKR BHAVAN, KAWDIAR P.O. THIRUVANANTHAPURAM 695 003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM 695 003. BY SRI.JOS WINSON FOR CHRISTOPHER ABRAHAM. 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.5287 OF 2020 2 JUDGMENT Dated this the 25th day of February 2020 Heard Sri. T.R.Harikumar, the learned counsel for the petitioner and Sri. Jose Winson holding for 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 WP(C).No.5287 OF 2020 3 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 appeal. Sd/- S.V.BHATTI JUDGE uu 27.02.2020 WP(C).No.5287 OF 2020 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1

AOF THE ASSESSMENT ORDER FOR THE YEAR 2017-2018 DATED 24.12.2019. EXHIBIT P2 AOF THE NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT DATED 24.12.2019. EXHIBIT P3 AOF THE ONLINE APPEAL DATED 04.01.2020 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 DATED 17.01.2020. EXHIBIT P5 AOF THE COMMUNICATION NO. ITBA/COM/F/17/2019- 20/1024749007(1) DATED 05.02.2020, ISSUED BY THE 1ST RESPONDENT. EXHIBIT P6 AOF THE JUDGMENT DATED 19.07.2019 IN W.A. NO. 1639 OF 2019. EXHIBIT P7 AOF THE JUDGMENT DATED 25.11.2019 IN WPC NO. 31787 OF 2019. EXHIBIT P8 AOF THE JUDGMENT DATED 17.02.2020 IN WPC NO. 4310 OF 2020.

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