THE PERINGANADU SERVICE CO-OPERATIVE BANK LTD.NO.2706 vs. THE INCOME TAX OFFICER

WP(C)/5285/2020HC KeralaKLHC01014334202025 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages

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What did the High Court hold?

The High Court of Kerala disposed of the writ petition. The Court directed the Commissioner of Income Tax (Appeals), the second respondent, to consider and dispose of the statutory appeal filed by the petitioner at the earliest. In doing so, the Commissioner was directed to take 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]. Furthermore, the Court ordered that recovery proceedings and the collection of tax assessed be kept in abeyance pending the disposal of the statutory appeal. The Court found that the facts were substantially similar to a previous Division Bench judgment, which it followed.

What were the facts?

The petitioner, The Peringanadu Service Co-operative Bank Ltd., 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 relied on a previous judgment of the Division Bench 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 the appeals. The Income Tax Officer, Ward-4, Kollam, and the Commissioner of Income Tax (Appeals), Thiruvananthapuram, were the respondents. The assessment year(s) are not explicitly stated in the judgment.

What were the issues?

1. Whether the present writ petition should be disposed of in line with the Division Bench's directions in W.A. No. 1536 of 2019 and connected cases, concerning the disposal of statutory appeals and stay of recovery proceedings pending appeal. (Question of law and procedure) Assessee's Contention: The petitioner argued that the facts of their case are substantially similar to those considered by the Division Bench in W.A. No. 1536 of 2019, and therefore, the directions issued in that judgment should be followed. They relied on the judgment dated 01.07.2019 in W.A. No. 1536 of 2019 and connected cases. Revenue's Contention: The learned Standing Counsel for the respondents admitted that the facts of the case are substantially the same and similar to the facts noted by the Division Bench in W.A. No. 1536 of 2019, and thus, the said judgment can be followed.

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Heard together (2 matters)

WP(C).No.5285 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.5285 OF 2020(I) PETITIONER/S: THE PERINGANADU SERVICE CO-OPERATIVE BANK LTD.NO.2706, PERINGANADU, PERINGANADU P.O. ADOOR, PATHANAMTHITTA DISTRICT 691 551, REPRESENTED BY ITS SECRETARY. BY ADVS. SRI.MANU RAMACHANDRAN SRI.M.KIRANLAL SRI.R.RAJESH (VARKALA) SRI.T.S.SARATH SHRI.SAMEER M NAIR RESPONDENT/S: 1 THE INCOME TAX OFFICER OFFICE OF INCOME TAX OFFICER, WARD -4, AAYAKAR BHAVAN, NEAR KARBALA JUNCTION, RAILWAY STATION ROAD, KOLLAM, KOLLAM DISTRICT 691 001. 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.5285 OF 2020 2 JUDGMENT Dated this the 25th day of February 2020 Heard Sri. Manu Ramachandran, the learned counsel for the petitioner and Sri. Jose 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)/ 2nd respondent to consider and dispose of the statutory appeal filed by the petitioner herein at the earliest

WP(C).No.5285 OF 2020 3 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. S.V.BHATTI JUDGE uu 27.02.2020

WP(C).No.5285 OF 2020 4

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 THE TRUE COPY OF THE ASSESSMENT ORDER DATED 04.12.2019 PASSED BY 1ST RESPONDENT AGAINST THE PETITIONER SOCIETY IN RESPECT OF FINANCIAL YEAR 2017-18. EXHIBIT P2 THE TRUE COPY OF THE DEMAND NOTICE UNDER SECTION 156 OF INCOME TAX ACT DATED 04.12.2019. EXHIBIT P3 THE TRUE COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P4 THE TRUE COPY OF THE NOTICE DATED 28.01.2020 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER. EXHIBIT P5 THE TRUE COPY OF THE APPLICANT FOR STAY FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P6 THE TRUE COPY OF THE NOTICE DATED 11.02.2020 ISSUED BY THE 1ST RESPONDENT TO KERALA BANK, ADOOR BRANCH.

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