ALIAMMA SKARIA & 2 OTHERS V. UNION OF INDIA & 3 OTHERS

WP(C)/14156/2010

AI Insights

The case involved a writ petition filed by several petitioners against the Ramamangalam Grama Panchayat and others, challenging the Panchayat's authority to collect income tax at source from consumers of river sand. The primary legal contention was centered around the applicability of section 206C of the Income Tax Act, 1961, which pertains to the collection of tax at source. During the proceedings, it was revealed that the Panchayat had received a directive from the Additional Commissioner of Income Tax, Kochi, stating that they were not required to collect this tax. Consequently, the Panchayat decided to cease such collections, leading to the closure of the case by the court.

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 679787 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 01-02-2011
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: P K RAVINDRANATHA MENON; JOSE JOSEPH; T R MADHU; S SREEKUMAR
• Assessee Lawyers: H B SHENOY; B ASHOK SHENOY; LAKSHMI SHENOY; ABU MATHEW; SOBHAN GEORGE; K V GEORGE; ROY THOMAS
• Keywords: Income Tax; Panchayat; River sand; Collection at source
• Section: 206C

Judgement Text

" IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.T.RAVIKUMAR TUESDAY, THE 1ST FEBRUARY 2011 / 12TH MAGHA 1932 WP(C).No. 14156 of 2010(T) --------------------------------------- PETITIONER(S): ------------------------ 1. ALIAMMA SKARIA ALIAS KUNJUMOL SKARIA, AGED 47 YEARS, WIFE OF SKARIA, KOTTAKURICKAL, KIZHUMURI, RAMAMANGALAM P.O.686 663, ERNAKULAM DISTRICT. 2. SAJEEVAN E.S., AGED 55 YEARS, SON OF SIVASANKARAN NAIR, EDAYALIL HOUSE, KIZHUMURI, RAMAMANGALAM P.O.686 663, ERNAKULAM DISTRICT. 3. K.P.SALIM, AGED 48 YEARS, SON OF K.K.PAVITHRAN, THANNIKKAL, PAZHOOR, PIRAVOM-686 664. BY ADVS. SRI.H.B.SHENOY SRI.B.ASHOK SHENOY SMT.LAKSHMI B.SHENOY SRI.ABU MATHEW SRI.SOBHAN GEORGE SRI.K.V.GEORGE SRI.ROY THOMAS (MUVATTUPUZHA) RESPONDENT(S): -------------------------- 1. UNION OF INDIA REPRESENTED BY ITS SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NEW DELHI-110 001. 2. THE INCOME TAX OFFICER, WARD-2, THODUPUZHA, MAHIMA TOWER, TEMPLE BYEPASS ROAD, THODUPUZHA. 3. RAMAMANGALAM GRAMA PANCHAYAT REPRESENTED BY ITS SECRETARY, RAMAMANGALAM PO, 686 663, ERNAKULAM DISTRICT. sts WP(C)NO.14156/2010 4. PIRAVOM GRAMA PANCHAYAT REPRESENTED BY ITS SECRETARY, PIRAVOM-686 664,ERNAKULAM DISTRICT. R1 & R2 BY SRI.P.K.RAVINDRA NATHA MENON,SR.COUNSEL, GOI(TAXES) BY ADV.SRI.JOSE JOSEPH, SC, FOR INCOME TAX R3 BY ADV. SRI.T.R.MADHU R4 BY SRI.S.SREEKUMAR THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 01/02/2011, ALONG WITH WPC NO. 15421 OF 2010 ,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts WP(C)NO.14156/2010 APPENDIX PETITIONER'S EXHIBITS: P1 COPY OF THE LETTER NO.ITO/W-2/TDPA/TCS/06-07 DATED 6/9/2006 ISSUED BY 2ND RESPONDENT TO 4TH RESPONDENT. P2 COPY OF THE PRINTED PAMPHLET DATED NIL ISSUED BY 4TH RESPONDENT. P3 COPY OF THE CASH MEMORANDUM NO.29143 DATED 19/4/2010 ISSUED BY 3RD RESPONDENT TO 1ST PETITIONER. P4 COPY OF THE LETTER DATED 24/4/2010 ISSUED BY 3RD RESPONDENT TO 1ST PETITIONER. P5 COPY OF THE LETTER NO.C 1861/10 DATED 22/4/2010 ISSUED BY 3RD RESPONDENT TO 1ST PETITIONER. RESPONDENT'S EXHIBITS: NIL /TRUE COPY/ P.S.TO.JUDGE sts C.T.RAVIKUMAR, J. --------------------------------------- W.P(C)Nos.14156 & 15421 of 2010 ---------------------------------------- Dated 1st February, 2011 JUDGMENT These writ petitions carry similar grievances raised by similarly situated persons. Essentially, the question involved in these writ petitions is with respect to the right of the concerned Panchayat to collect income tax at source from the consumers of river sand. Various contentions have been raised to assail such action from the part of the Panchayat. However, when this matter is taken up for consideration today, the learned standing counsel for the Panchayat furnished a copy of a letter from the Additional Commissioner of Income Tax, Kochi addressed to the Secretary of the Grama Panchayat. As per the same, it is clarified that tax need not be collected under section 206C of Chapter XVIIB of the Income Tax Act, 1961 by the Panchayat. It is submitted by the learned standing counsel for the Panchayat that pursuant to the receipt of the said letter the Panchayat has decided to discontinue with the collection of income tax under section 206C of Chapter XVIIB of the Income Tax Act. This is recorded. In view of the said submission, I am of the view that nothing survives for further consideration in WP(C).Nos.14156 & 15421/2010 2 these writ petitions. Therefore, recording the above submission made on behalf of the Panchayat, these writ petitions are closed. Sd/- C.T.RAVIKUMAR Judge TKS // True copy // P.S. to Judge "