CORE TECH INFO SYSTEMS PVT. LTD. V. UNION OF INDIA,

WP(C)/5950/2020

AI Insights

The case involves Core Tech Info Systems Pvt. Ltd., represented by its managing director, G. Muraleedharan Pillai, who filed a writ petition against the Union of India and other respondents due to the freezing of their bank accounts by the 6th respondent, the Assistant Income Tax Officer, despite the ongoing appeal against an assessment order for the year 2008-09. The petitioner had already deposited 20% of the demanded tax, complying with the pre-deposit condition required to stay the recovery proceedings during the appeal. The court, after hearing the arguments, found the action of the 6th respondent to be illegal and ordered the immediate de-freezing of the accounts.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 722174 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 28-02-2020
• Assessment Year: misc
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: P VIJAYAKUMAR
• Assessee Lawyers: M R ANANDAKUTTAN; M A ZOHRA; MAHESH ANANDAKUTTAN
• Keywords: Appeal; Assessment Order; Bank account freeze; Income Tax; De-freezing

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI FRIDAY, THE 28TH DAY OF FEBRUARY 2020 / 9TH PHALGUNA, 1941 WP(C).No.5950 OF 2020(P) PETITIONER/S: CORE TECH INFO SYSTEMS PVT. LTD. REPRESENTED BY ITS MANAGING DIRECTOR G.MURALEEDHARAN PILLAI, MURALIKA KRRA 24A, KRISHNA TOWERS TC 19/805(1(, KESAVADEV ROAD POOJAPPURA, THIRUVANANTHAPURAM BY ADVS. SRI.M.R.ANANDAKUTTAN SMT.M.A.ZOHRA SRI.MAHESH ANANDAKUTTAN RESPONDENT/S: 1 UNION OF INDIA,REPRESENTED BY THE SECRETARY MINISTRY OF ELECTRONICS & INFORMATION TECHNOLOGY GOVERNMENT OF INDIA,NEW DELHI- 110 001 2. THE DIRECTOR, STPI-T, SOFTWARE TECHNOLOGY PARK OF INDIA, GOVERNMENT OF INDIA, THIRUVANANTHAPURAM, PIN 110 001 3. THE COMMISSIONER OF INCOME TAX (APPEALS) OFFICE OF THE INCOME TAX APPELLATE TRIBUNAL PEROORKADA ROAD, KOWDIAR, THIRUVANANTHAPURAM PIN-695 003 4. THE JOINT COMMISSIONER OF INCOME TAX OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX RANGE-I, THIRUVANANTHAPURAM-695 003 5 THE INCOME TAX OFFICER, WARD (1) KAWDIAR, THIRUVANANTHAPURAM 695 003 6 THE ASSISSTANT INCOME TAX OFFICER CIRCLE 1(1), AAYAKAR BHAVAN, KOWDIAR THIRUVANANTHAPURAM 695 003 R1 BY ADV. SHRI.P.VIJAYAKUMAR, ASG OF INDIA SC CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.5950/2020 -2- J U D G M E N T Heard Adv.M.A Zohra for petitioner and Adv.Christopher Abraham for respondents. 2. Petitioner, aggrieved by the assessment order for the assessment year 2008-09, filed appeal before 3rd respondent. Petitioner asserts that he has deposited 20% of the tax demanded as well. Notwithstanding the pendency of appeal and complying with the pre-deposit condition by the petitioner, the Bank Accounts of petitioner have been frozen by 6th respondent. The petitioner through Ext.P5 requested for de-freezing petitioner's Current A/c. No.67109748627 and EEFC A/C No.67037036471 as petitioner is entitled to stay of order of assessment under appeal. 3. After taking note of 20% deposit made by petitioner and that the appeal is pending against assessment order for assessment W.P.(C) No.5950/2020 -3- year, 2008-09, I am of the view that freezing petitioner's Current A/c. No.67109748627 and EEFC A/C No.67037036471 by respondents is illegal. The 6th respondent is directed to forthwith communicate to State Bank of India, Trivandrum City Branch to de-freeze the bank accounts by disposing of Ext.P5 immediately. Learned Standing Counsel state that the description of 6th respondent is incorrect and proper respondent is Deputy Commissioner of Income tax, Circle 1(1), Ayakar Bhavan, Kowdiar, Thiruvananthapuram, and the Standing Counsel is given liberty to communicate the operative portion of the order to Deputy Commissioner of Income Tax, Circle 1(1), Ayakar Bhavan, Kowdiar, Thiruvananthapuram, and enable him to send communication to Bank expeditiously. Sd/- S.V.BHATTI JUDGE JS W.P.(C) No.5950/2020 -4- APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE AGREEMENT DATED 10-06- 2005 FOR SOFTWARE TECHNOLOGY PARK EXECUTED BETWEEN THE PETITIONER AND 2ND RESPONDENT. EXHIBIT P2 TRUE COPY OF THE REGISTRATION-CUM- MEMBERSHIP CERTIFICATE ISSUED BY 2ND RESPONDENT ON 28-06-2005 EXHIBIT P3 TRUE COPY OF THE INTIMATION DATED 12/8/2016 OF THE INCOME TAX OFFICER EXHIBIT P4 TRUE COPY OF THE REPRESENTATION MADE BY THE PETITIONER BEFORE THE 1ST RESPONDENT ON 31-08-2016 EXHIBIT P5 TRUE COPY OF THE LETTER DATED 14-02-2020 BY THE COMPANY TO THE CONCERNED TAX AUTHORITIES "