M/S.MUGU SERVICE CO-OPERATIVE BANK LTD., vs. THE INCOME TAX OFFICER

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WP(C)/3462/2020HC KeralaKLHC01009698202007 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court 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 assessed tax should be kept in abeyance pending the disposal of the appeal. This decision was based on the admission by the Revenue's counsel that the facts of the present case were substantially similar to those in W.A. No. 1536 of 2019, and the Court's reliance on 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 did not explicitly leave any issue undecided.

What were the facts?

The petitioner, M/s. Mugu Service Co-operative Bank Ltd., represented by its Secretary-in-Charge, 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 Division Bench judgment dated July 1, 2019, 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 Revenue's counsel admitted that the facts of the present case were substantially similar to those considered in the cited Division Bench judgment.

What were the issues?

1. Whether the recovery proceedings and collection of assessed tax should be kept in abeyance pending the disposal of the statutory appeal filed by the petitioner? 2. Whether the statutory appeal filed by the petitioner should be disposed of at the earliest? Assessee's Contention: The petitioner contended that, similar to the facts in W.A. No. 1536 of 2019, the Court should direct the disposal of its appeal and grant a stay on recovery proceedings during the appeal's pendency. The petitioner relied on the judgment dated 01.07.2019 in W.A No.1536 of 2019 and connected cases. Revenue's Contention: The Revenue's counsel admitted that the facts of the case were substantially the same and similar to the facts noted by the Division Bench in W.A. No. 1536 of 2019, and therefore, the earlier judgment could be followed.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.3462 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.3462 OF 2020(G) PETITIONER/S: M/S.MUGU SERVICE CO-OPERATIVE BANK LTD., MUGU P.O., PUTHIGE, (VIA) KUMBLA, KASARAGOD-671321, REPRESENTED BY ITS SECRETARY-IN-CHARGE SHRI,SANJEEVA RAI. BY ADV. SRI.V.P.NARAYANAN RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD-1 AND TPS, KASARAGOD-671123. 2 THE COMMISSIONER OF INCOME TAX (APPEALS)-II, AYYAKKAR BHAVAN, NORTH BLOCK, MANANCHIRA, KOZHIKODE-673001. OTHER PRESENT: JOS WINSON FOR CHRISTOPHER ABRAHAM,SC 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 Nisha John, Counsel for petitioner and Advocate Jose Winson holding for Advocate Christopher Abraham, Standing Counsel for respondents.

2.

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.

3.

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 -3- 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 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 TRUE COPY OF THE ASSESSMENT ORDER ALONG WITH DEMAND NOTICE 13.12.2019 PASSED BY THE 1ST RESPONDENT FOR AY-2017-18. EXHIBIT P2 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 10.01.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2017-18. EXHIBIT P3 TRUE COPY OF STAY PETITION DATED 01.01.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2017-18. EXHIBIT P4 TRUE COPY OF THE APPLICATION DATED 10.01.2020 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT.

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