VATTAMKULAM PANCHAYATH SERVICE CO-OPERATIVE BANK LIMITED NO.M.481, vs. THE COMMISSIONER OF INCOME TAX (APPEALS),

WP(C)/5380/2020HC KeralaKLHC01014146202025 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages

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What did the High Court hold?

The High Court disposed of the writ petition by directing the Commissioner of Income Tax (Appeals), the first respondent, to consider and dispose of the statutory appeal filed by the petitioner at the earliest. The Court further directed that recovery proceedings and the collection of tax assessed should be kept in abeyance pending the disposal of the appeal. This decision was made 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]. The Court found the facts to be substantially similar to those in W.A. No. 1536 of 2019, which was followed. The ratio decidendi is that in cases with similar facts and in light of established precedents, appellate authorities should expedite disposal of appeals and stay recovery pending such disposal.

What were the facts?

The petitioner, Vattamkulam Panchayath Service Co-operative Bank Limited, filed a writ petition before the High Court of Kerala. The petitioner sought directions regarding its pending statutory appeal before the Commissioner of Income Tax (Appeals). The petitioner referred to a previous judgment by a Division Bench of the same High Court (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 such appeals. The Revenue, represented by the Standing Counsel, admitted that the facts of the present case were 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 early disposal of its statutory appeal before the Commissioner of Income Tax (Appeals)? (Question of law and fact, concerning procedural fairness and timely resolution of tax disputes). 2. Whether the petitioner is entitled to a stay of recovery proceedings and collection of tax assessed pending the disposal of its appeal? (Question of law, concerning the powers of the appellate authority and the rights of the assessee). Assessee's Contention: The petitioner relied on the Division Bench judgment 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 the appeal. Revenue's Contention: The Revenue's counsel admitted that the facts of the case were substantially similar to those in the Division Bench judgment cited by the petitioner, implying agreement with the precedent.

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Heard together (2 matters)

WP(C).No.5380 OF 2020

W.A No.1536 of 2019

Read from the judgment's own cause title. This page is filed under one of them.

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.5380 OF 2020(V) PETITIONER: VATTAMKULAM PANCHAYATH SERVICE CO-OPERATIVE BANK LIMITED NO.M.481, PATTAMBI ROAD, VATTAMKULAM P.O., EDAPPAL, DISTRICT-679587, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS), AYAKAR BHAVAN, KOZHIKODE-673001. 2 THE INCOME TAX OFFICER, WARD(4), TIRUR-676001. 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.5380 OF 2020(V) 2 JUDGMENT Dated this the 25th day of February 2020 Heard Sri. O.D. Sivadas, the learned counsel for the petitioner and Sri. Jos Winson holding for Sri. Christopher Abraham, the learned Standing Counsel for respondents.

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.

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

WP(C).No.5380 OF 2020(V) 3 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. S.V.BHATTI JUDGE DCS

WP(C).No.5380 OF 2020(V) 4

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 23.12.2019 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2017-18. EXHIBIT P2 COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2017-18 DATED 18.01.2020 EXHIBIT P3 COPY OF THE PROCEEDINGS DATED 11.02.2020 ISSUED BY THE 2ND RESPONDENT DEMANDING THE DISPUTED TAX.

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