AL-AMEEN EDUCATION TRUST V. THE ADDITIONAL COMMISSIONER OF INCOME TAX

WP(C)/20475/2012

AI Insights

The case involves Al-Ameen Educational Trust, a charitable trust that operates an engineering college, which faced penalty proceedings under Section 271D of the Income Tax Act for the assessment years 2005-06 and 2006-07. The trust appealed against the penalties imposed, which were initially heard but not decided due to a difference of opinion among the tribunal members, leading to a referral to a third member. Meanwhile, a notice was issued demanding payment of the penalties, prompting the trust to file this writ petition. The court considered the ongoing appeal process and the substantial payment already made by the trust before issuing the notice.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 764809 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 11-09-2012
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: T M SREEDHARAN; V P NARAYANAN; BOBY SEKHAR
• Keywords: Appeal; Charitable Trust; Coercive Action; Engineering College; Penalty proceedings; Stay Petition
• Section: 271D

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE ANTONY DOMINIC TUESDAY, THE 11TH DAY OF SEPTEMBER 2012/20TH BHADRA 1934 WP(C).No. 20475 of 2012 (H) --------------------------- PETITIONER(S): ------------- AL-AMEEN EDUCATIONAL TRUST KULAPPULLY P.O., SHORANUR - 679122 PALAKKAD DISTRICT REPRESENTED BY SHRI.ABDULLA C.K., SECRETARY. BY ADVS.SRI.T.M.SREEDHARAN (SR.) SRI.V.P.NARAYANAN SMT.BOBY M.SEKHAR RESPONDENT(S): -------------- 1. THE ADDITIONAL COMMISSIONER OF INCOME TAX PALAKKAD RANGE, AYYAKKAR BHAVAN, ENGLISH CHURCH ROAD PALAKKAD - 678014. 2. THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, IST FLOOR, (BLOCK C-I & C-II) KENDRIYA BHAVAN, OPP. CSEZ, KAKKANAD COCHIN-682037, REPRESENTED BY ASSISTANT REGISTRAR. 3. THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-I, PALAKKAD - 678001. 4. THE TAX RECOVERY OFFICER OFFICE OF THE ADDITIONAL COMMISSIONER OF INCOME TAX PALAKKAD RANGE, AAYAKAR BHAVAN, PALAKKAD - 678014. BY ADV.JOSE JOSEPH, SC (INCOME TAX) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11-09-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: jm WPC NO. 20475 OF 2012 APPENDIX PETITIONER(S) EXHIBITS EXT.P1 TRUE COPY OF THE ORDER DATED 31/3/2008 ISSUED BY THE IST RESPONDENT U/S.271D FOR THE YEAR 2005-06. EXT.P2 TRUE COPY OF THE ORDER DATED 23/6/2009 ISSUED BY THE IST RESPONDENT U/S.271D FOR THE YEAR 2006-07. EXT.P3 TRUE COPY OF THE MEMORANDUM OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR 2005-06 ON 21/12/2010. EXT.P3(A) TRUE COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR 2005-06 ON 21/12/2010. EXT.P4 TRUE COPY OF THE MEMORANDUM OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR 2006-07 ON 21/12/2010. EXT.P4(A) TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR 2006-07 ON 21/12/2010. EXT.P5 TRUE COPY OF THE ORDER DATED 28/12/2011 ALONG WITH COVERING LETTER DATED 23/3/2012 ISSUED BY THE 2ND RESPONDENT. EXT.P6 TRUE COPY OF THE NOTICE NO.AABTAO780A/TRO/PKD/2012-13 DATED 25/6/2012 ISSUED BY THE 4TH RESPONDENT. EXT.P7 TRUE COPY OF THE LETTER DATED 3/7/2012 SENT BY THE PETITIONER TO THE 4TH RESPONDENT. RESPONDENTS' EXHIBITS : NIL TRUE COPY PA TO JUDGE jm ANTONY DOMINIC, J ........................................ W.P.(C).20475/2012 .............................................. Dated this the 11th day of September, 2012 JUDGMENT Heard the learned senior counsel for the petitioner and the learned Standing Counsel appearing for the respondents. 2. Petitioner is a Charitable Trust which has established an Engineering College at Shornur. Exts.P1 and P2 are the orders passed against the petitioner in a penalty proceedings which were initiated under Section 271D of the Income Tax Act. Aggrieved by these orders, petitioner filed appeals which were rejected. Thereafter, petitioner filed Exts.P3 and P4 Appeals along with Exts.P3(a) and P4(a) stay petitions. Appeals were filed before the 2nd respondent. Although stay petitions were heard instead of passing orders thereon, Tribunal chose to hear the Appeals itself. Accordingly appeals were heard. However, in Ext.P5 order, there was difference of opinion between the members. As a result, the matter now stands referred to be heard by a 3rd member. In the meanwhile, Ext.P6 notice, demanding payment of the penalty and threatening of coercive action in the event of default, has been issued. This led the petitioner to file this writ petition. 3. Although the learned Standing Counsel appearing for the respondents contended that in the absence of any order of W.P.(C).20475/12 2 stay restraining the Department from realizing the amounts due under Exts.P1 and P2, they were entitled to have issued Ext.P6, fact remains that the appeals have been heard and in the peculiar circumstances pointed out, the matter now stands referred to be heard by a 3rd member. That apart, it is also submitted by the learned senior counsel for the petitioner that Rs.25,72,602/- has been paid by him. 4. In such circumstances, I dispose of this writ petition with the following directions. Tribunal shall expeditiously hear and pass orders on Exts.P3 and P4 appeals. In the meantime, subject to the petitioner remitting an amount of Rs.15,00,000/- within three weeks from today, further proceedings pursuant to Ext.P6 will be kept in abeyance. Sd/- ANTONY DOMINIC, JUDGE mrcs /true copy/ PA To Judge "