ACHAMMA OOMMEN JOHN, V. THE INCOME TAX OFFICER,

WP(C)/12976/2019

AI Insights

The case involves Achamma Oommen John, the petitioner, who contested a demand notice issued by the Income Tax Officer regarding tax on interest from enhanced compensation for the assessment year 2014-15. Initially, certain deductions under Section 57(iv) of the Income Tax Act were omitted in the tax return, leading to a demand for tax on the full interest amount received. The petitioner later filed a revised computation and a rectification petition to claim the omitted deductions. The court's intervention was sought to halt the coercive proceedings based on the demand notice until the rectification petition was considered.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 754767 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 03-05-2019
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: RAMESH JOHN
• Keywords: Coercive Proceedings; Enhanced compensation; Income Tax; Interest income; Rectification petition
• Section: 143(1); 57(iv)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH FRIDAY, THE 03RD DAY OF MAY 2019 / 13TH VAISAKHA, 1941 WP(C).No. 12976 of 2019 PETITIONER: ACHAMMA OOMMEN JOHN, KOLOOTHARA LIBU VILLA, VENMONEY P.O., CHENGANNUR - 689 509. BY ADV. SRI.RAMESH CHERIAN JOHN RESPONDENTS: THE INCOME TAX OFFICER, WARD (1) AND TPS, VAISHNAVAM ARCADE, THEEPANI, THIRUVALLA - 689 101. SC: JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.05.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 12976 of 2019 2 JUDGMENT The petitioner seeks to quash Ext.P10 demand and to keep in abeyance all coercive proceedings pursuant thereto till Ext.P8 rectification petition is considered and disposed of. 2. The petitioner is an income tax assessee. According to the petitioner, for the assessment year 2014-15 while filing the original return, the consultant of the petitioner omitted to claim certain deductions under Section 57(iv) of the Act on the interest of enhanced compensation received by the petitioner. Thereupon, Ext.P3 intimation was served on the petitioner demanding tax on the full amount of the interest received. The petitioner filed Ext.P4 revised computation of income and remitted the tax due on 50% of the interest income. The petitioner also filed Ext.P8 rectification petition before the respondent to rectify Ext.P3 intimation after allowing the deduction under Section 57(iv) of the Act, which is statutorily available to the petitioner. Without considering Ext.P8, the first respondent has issued Ext.P10 notice proposing to initiate Revenue Recovery proceedings, contends the petitioner. WP(C).No. 12976 of 2019 3 3. Heard learned counsel for the petitioner and learned Standing Counsel for the respondent. In the facts of the case, the writ petition is disposed of directing the respondent to consider and dispose of Ext.P8 rectification petition filed by the petitioner within a period of one month, after giving an opportunity of hearing to the petitioner. Till the respondent takes a final decision in Ext.P8, Ext.P10 proceedings shall be kept in abeyance. Sd/- N.NAGARESH dlk/04.05.19 JUDGE WP(C).No. 12976 of 2019 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE TYPED COPY OF THE COMMUNICATION DT.20/02/2014 ISSUED BY THE DISTRICT COLLECTOR TO THE HON'BLE SUB JUDGE, SUB COURT, THIRUVANANTHAPURAM, IN COMPLIANCE WITH THE DECREE. EXHIBIT P2 A TRUE COPY OF THE ORIGINAL RETURN FILED BY THE PETITIONER ALONG WITH STATEMENT OF INCOME. EXHIBIT P3 A TRUE COPY OF THE INTIMATION U/S.143(1) OF THE ACT DT. 02/07/2015. EXHIBIT P4 A TRUE COPY OF THE REVISED COMPUTATION OF TOTAL INCOME FOR THE AY 2014-15. EXHIBIT P5 A TRUE COPY OF ACKNOWLEDGMENT OF E- FILING. EXHIBIT P6 A TRUE COPY OF THE CHALLAN DT.21/11/2018 SHOWING REMITTANCE OF AN AMOUNT OF RS.71,455/- AS TAX. EXHIBIT P7 A TRUE COPY OF THE COVERING LETTER OF THE ADVOCATE DT.13/12/2018 WITH POSTAL RECEIPT. EXHIBIT P8 A TRUE COPY OF THE RECTIFICATION PETITION DT. 07/11/2018. EXHIBIT P9 A TRUE COPY OF THE ACKNOWLEDGMENT CARD OF THE DEPARTMENT OF POST SHOWING RECEIPT OF THE RECTIFICATION PETITION BY THE RESPONDENT AS EARLY AS ON 17/12/2018. EXHIBIT P10 A TRUE COPY OF THE ARREAR NOTICE DT.20/02/2019 ISSUED BY THE RESPONDENT. EXHIBIT P11 A TRUE COPY OF THE COVERING LETTER OF THE ADVOCATE DT. 29/04/2019 WITH POSTAL RECEIPT. EXHIBIT P12 A TRUE COPY OF THE LETTER OF THE ASSESSEE DT. 29/04/2019. "