NEDUMPANA SERVICE CO-OPERATIVE BANK LTD. (REG.NO.Q-117) vs. INCOME TAX OFFICER

WP(C)/5363/2020HC KeralaKLHC01014415202025 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 directed that recovery proceedings and collection of tax assessed should be kept in abeyance pending the disposal of the appeal. This decision was based 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] and the admission by the revenue that the facts were similar to a previous case where such directions were granted. The operative direction is to dispose of the appeal expeditiously and stay recovery.

What were the facts?

The petitioner, Nedumpana Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala. The petitioner sought directions regarding its pending appeal before the Commissioner of Income Tax (Appeals). The petitioner relied on a previous judgment dated 01.07.2019 in W.A No.1536 of 2019 and connected cases, where a Division Bench had directed the disposal of appeals and granted a stay on recovery proceedings during the pendency of the appeals. The respondents, represented by the Standing Counsel for the Income Tax Department, admitted that the facts of the present case were substantially similar to those in the cited writ appeal.

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 in W.A No.1536 of 2019 had directed the disposal of appeals and granted a stay of recovery proceedings during the pendency of the appeal, and that the present case had substantially similar facts. The revenue, through its Standing Counsel, admitted the similarity of facts and did not present any opposing arguments.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.5363 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.5363 OF 2020(U) PETITIONER: NEDUMPANA SERVICE CO-OPERATIVE BANK LTD. (REG.NO.Q-117) NEDUMPANA, KULAPPADAM, NEDUMPANA P.O., KOLLAM, KERALA-691 576, REPRESENTED BY ITS SECRETARY, G.R. AJITH KUMAR, AGED 38 YEARS, S/O. GOPINATHAN PILLAI, AJITHA BHAVAN, PULIYILA NALLILLA P.O., KOLLAM-691 515. BY ADV. SRI.P.SATHISAN RESPONDENT/S: 1 INCOME TAX OFFICER WARD 5, AAYAKAR BHAVAN, INCOME TAX OFFICE, NEAR KARBALA JUNCTION, RAILWAY STATION ROAD, KOLLAM, KERALA-691 001. 2 COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, KERALA-695003. BY SRI. JOS WINSON FOR SRI. CHRISTOPHER ABRAHAM,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.5363 OF 2020(U) 2 JUDGMENT Dated this the 25th day of February 2020 Heard Sri. P. Sathisan, the learned counsel for the petitioner and Sri. Jos 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 WP(C).No.5363 OF 2020(U) 3 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- 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 DCS WP(C).No.5363 OF 2020(U) 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1

OF THE ASSESSMENT ORDER NO.ITBA/AST/S/143(3)/2019-20/1022758605(I) DATED 20.12.2019. EXHIBIT P2OF THE DEMAND NOTICE NO.ITBA/AST/S/156/2019-20/1022758704(1) DATED 20.12.2019. EXHIBIT P3OF THE APPEAL MEMORANDUM SUBMITTED BY THE PETITIONER DATED 14.1.2020. EXHIBIT P4OF THE ACKNOWLEDGMENT OF EXT.P3. EXHIBIT P5OF THE APPLICATION FOR STAY OF DEMAND FILED BY THE PETITIONER BEFORE THE IST RESPONDENT DATED 21.1.2020. EXHIBIT P6OF THE APPLICATION FOR STAY OF DEMAND FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 15.1.2020. EXHIBIT P7OF THE ORDER ON STAY PETITION DATED 27.1.2020. EXHIBIT P8OF THE INTERNAL OFFICE MEMORANDUM OF MINISTRY OF FINANCE CENTRAL BOARD OF DIRECT TAXES (CBDT) DATED 29.2.2016. EXHIBIT P9OF THE CHANGES IN EXT.P7 DATED 31.7.2017. EXHIBIT P10OF THE JUDGMENT IN WPC 3838 OF 2020 DATED 11.2.2020.

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