THE VAZHAYOOR SERVICE CO-OPERATIVE BANK LTD. NO.D 1898, vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/3396/2020HC KeralaKLHC01009616202007 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala 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 the collection of tax assessed should be kept in abeyance pending the disposal of such 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] and the admission by the revenue that the facts were similar to a previous Division Bench judgment. The operative direction is to dispose of the appeal expeditiously and stay recovery.

What were the facts?

The petitioner, The Vazhayoor Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala. The petitioner sought a direction for the disposal of its statutory appeal pending before the Commissioner of Income Tax (Appeals), the first respondent. The petitioner relied on a Division Bench judgment dated July 1, 2019, in W.A. No. 1529 of 2019 and connected cases, which directed the disposal of appeals and granted a stay of recovery during the pendency of appeals. The Standing Counsel for the respondents admitted that the facts of the present case were substantially similar to those considered by the Division Bench in the cited writ appeal.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the statutory appeal filed by the petitioner at the earliest? 2. Whether recovery proceedings and collection of assessed tax should be kept in abeyance pending the disposal of the appeal? Assessee's Contention: The petitioner relied on the judgment in W.A. No. 1529 of 2019 and connected cases, which directed disposal of appeals and granted a stay of recovery. The petitioner argued that similar directions should be issued in its case. Revenue's Contention: The Standing Counsel for the respondents admitted that the facts were substantially the same as in the cited judgment and agreed that the same could be followed. No specific arguments were recorded against the petitioner's prayer.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.3396 OF 2020

W.A No.1529 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 FRIDAY, THE 07TH DAY OF FEBRUARY 2020 / 18TH MAGHA, 1941 WP(C).No.3396 OF 2020(Y) PETITIONER/S: THE VAZHAYOOR SERVICE CO-OPERATIVE BANK LTD. NO.D 1898, AZHINHLAM P.O., FAROOK COLLEGE (VIA), MALAPPURAM DISTRICT, MALAPPURAM DISTRICT-673632, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.O.D.SIVADAS RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) AYAKAR BHAVAN, KOZHIKODE, PIN-673001. 2 THE INCOME TAX OFFICER WARD (3), TIRUR, MALAPPURAM DISTRICT, PIN-676001. OTHER PRESENT: JOS WINSON FOR CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.3396 OF 2020(Y) 2 JUDGMENT Dated this the 7

th day of February, 2020 Heard 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.1529 of 2019 and connected cases to contend that the Division Bench directed disposal of appeals and granted stay of recovery during the pendency of the appeals.

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.1529 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-operative Bank Ltd, v. The Commissioner of Income Tax, Calicut [2019 (2)

WP(C).No.3396 OF 2020(Y) 3 KHC 287] and to keep in abeyance recovery proceedings and collection of tax assessed, pending disposal of such appeal. S.V.BHATTI Dxy JUDGE

WP(C).No.3396 OF 2020(Y) 4

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 19.12.2016 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2009-10. EXHIBIT P2 COPY OF ASSESSMENT ORDER DATED 19.12.2016 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2014-15. EXHIBIT P3 COPY OF THE APPEAL MEMORANDUM DATED 17.01.2017 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2009-10. EXHIBIT P4 COPY OF THE APPEAL MEMORANDUM DATED 18.01.2017 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2014-15. EXHIBIT P5 COPY OF THE PROCEEDING DATED 30.12.2019 ISSUED BY THE 2ND RESPONDENT DEMANDING THE DISPUTED TAX.

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