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

WP(C)/3444/2020HC KeralaKLHC01009564202007 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. It directed 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 also ordered that recovery proceedings and the collection of assessed tax 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] and the admitted similarity of facts to the Division Bench judgment in W.A. No. 1536 of 2019. The ratio decidendi is that where facts are similar to a binding precedent directing expeditious disposal of appeal and stay of recovery, the same relief should be granted.

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 their statutory appeal pending before the Commissioner of Income Tax (Appeals). The petitioner relied on a previous judgment by a 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 appeal. The Standing Counsel for the respondents 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 Commissioner of Income Tax (Appeals) should be directed to dispose of the statutory appeal filed by the petitioner? 2. Whether recovery proceedings and collection of assessed tax should be kept in abeyance pending the disposal of the appeal? Assessee's Contentions: The petitioner contended that a Division Bench judgment in W.A. No. 1536 of 2019 and connected cases directed the disposal of appeals and granted a stay of recovery proceedings during the pendency of the appeal. They argued that this precedent should be followed. Revenue's Contentions: The Standing Counsel for the respondents admitted that the facts of the case were substantially the same and similar to those noted by the Division Bench in W.A. No. 1536 of 2019, implying they did not contest the applicability of the earlier judgment.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.3444 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 FRIDAY, THE 07TH DAY OF FEBRUARY 2020 / 18TH MAGHA, 1941 WP(C).No.3444 OF 2020(E) 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, PIN-676001. OTHER PRESENT: SC NAVANEETH N NATH FOR JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

-2- J U D G M E N T Dated this the 7th day of February 2020 Heard Advocate O.D.Sivadas, counsel for petitioner and Advocate Navneeth N.Nath holding for Advocate Jose Joseph, 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.

-3- 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) KHC 287] and to keep in abeyance recovery proceedings and collection of tax assessed, pending disposal of such appeal. S.V.BHATTI JUDGE jjj -4-

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE ASSESSMENT ORDER DATED 26.12.2017 ISSUED BY THE 2ND RESPONDENT FOR THE PERIOD 2015-16. EXHIBIT P2 COPY OF THE APPEAL MEMORANDUM DATED 12.01.2018 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE PERIOD 2015-16. EXHIBIT P3 COPY OF THE PROCEEDING DATED 30.12.2019 ISSUED BY THE 2ND RESPONDENT DEMANDING THE DISPUTED TAX.

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