THE MANNARKKAD RURAL SERVICECO-OPERATIVE BANK LTD. NO.P 922 vs. THE INCOME TAX OFFICER

WP(C)/3427/2020HC KeralaKLHC01009431202007 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala, while disposing of the writ petition, directed the Commissioner of Income Tax (Appeals) (2nd respondent) to consider and dispose of the statutory appeal filed by the petitioner at the earliest. The Court specifically noted that the disposal should take into account 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 assessed tax should be kept in abeyance pending the disposal of the 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, Mannarkkad Rural Service Co-operative Bank Ltd., filed a writ petition before the High Court of Kerala. The petitioner sought directions regarding its statutory appeal pending before the Commissioner of Income Tax (Appeals). The petitioner relied on a previous Division Bench judgment (W.A. No. 1529 of 2019) which directed the disposal of appeals and granted a stay of recovery during the pendency of appeals. The Income Tax Officer and the Commissioner of Income Tax (Appeals) were the respondents. The assessment year(s) and the specific order or action under challenge are not explicitly stated, nor is the amount in dispute.

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, considering a Full Bench decision? 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 a Division Bench judgment in W.A. No. 1529 of 2019, which directed disposal of appeals and granted a stay of recovery. The petitioner argued that the present case had substantially similar facts and should be treated similarly. Revenue's Contention: The learned Standing Counsel for the respondents admitted that the facts of the case were substantially the same as those in W.A. No. 1529/2019 and could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.3427 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.3427 OF 2020(C) PETITIONER/S: THE MANNARKKAD RURAL SERVICECO-OPERATIVE BANK LTD. NO.P 922 8/767, MANNARKKAD, PALAKKAD-678 582, REPRESENTED BY ITS SECRETARY, M.PURUSHOTHAMAN, AGED 53, S/O. MADHAVAN NAIR. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 4, AYAKAR BHAVAN, PALAKKAD-678 014. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) SAKTHAN NAGAR, THRISSUR-680 021. 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:

WP(C).No.3427 OF 2020(C) 2 JUDGMENT Dated this the 7

th day of February, 2020 Heard Sri. Harisankar V. Menon, the learned counsel for the petitioner and Sri.Navaneeth N. Nath holding for Sri. Jose Joseph, 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.1529/2019, 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 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 WP(C).No.3427 OF 2020(C) 3 collection of tax assessed, pending disposal of such appeal. S.V.BHATTI Dxy JUDGE

WP(C).No.3427 OF 2020(C) 4

Appendix — schedule of exhibits

APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE IST RESPONDENT FOR THE YEAR 2017-18 DATED 24.12.2019. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 2017-18 DATED 10.1.2020. EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 10.1.2020.

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