M/S.EMMANUVAL SILKS V. THE ADDITIIONAL COMMISSIONER OF INCOME TAX (TDS)

Crl.MC/3467/2015

AI Insights

The case involves M/S Emmanuval Silks and its partners, who are the petitioners, facing prosecution under Section 276B of the Income Tax Act, 1961, for not depositing tax deducted at source (TDS) within the stipulated time. The petitioners argued that there were valid reasons for the delay and that the ongoing appeal against a penalty imposed on them should be resolved first to determine the outcome of the prosecution. The respondents included various officials from the Income Tax Department and the State of Kerala. The High Court of Kerala decided to stay the prosecution proceedings until the appeal's disposal, emphasizing the need to resolve the appeal before proceeding with the prosecution.

• Counselvise Citation: [2016] 140 COUNSELVISE.COM (IT) 755579 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 11-01-2016
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH; CHRISTOPHER ABRAHAM; K M V PANDALAI; MAYA
• Assessee Lawyers: T M SREEDHARAN; V P NARAYANAN; L RAJESH NARAYAN
• Keywords: Appeal; Income Tax; Penalty; Prosecution; Stay
• Section: 276B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE B.KEMAL PASHA MONDAY , THE 11TH DAY OF JANUARY 2016/21ST POUSHA, 1937 Crl.MC.No. 3467 of 2015 ----------------------------------------- C.C.NO.193/2015 OF ADDITIONAL CHIEF JUDICIAL MAGISTRATE COURT (ECONOMIC OFFENCES), ALAPPAT ROAD, RAVIPURAM, KOCHI- 682 016 --------------------- PETITIONER(S)/ACCUSED : ------------------------------------------ 1. M/S.EMMANUVAL SILKS, EMMANUVAL BUILDINGS, BEHIND RAILWA Y STATION ROAD, CALV ARY CORNER, POOTHOLE, THRISSUR, REPRESENTED BY ITS MANAGING PARTNER SHRI T.O.BYJU. 2. SHRI.BYJU T.O., S/O.T.D.OUSEPH, PARTNER, M/S.EMMANUVAL SILKS, EMMANUVAL BUILDINGS, BEHIND RAILWA Y STATION ROAD, CALV ARY CORNER, POOTHOLE, THRISSUR. 3. SHRI.SHAJU T.O. @ SAJU, S/O.T.D.OUSEPH, M/S.EMMANUVAL SILKS, EMMANUVAL BUILDINGS, BEHIND RAILWA Y STATION ROAD, CALVARY CORNER, POOTHOLE, THRISSUR. 4. SHRI RAJU T.O., S/O.T.D.OUSEPH M/S.EMMANUVAL SILKS, EMMANUVAL BUILDINGS, BEHIND RAILWA Y STATION ROAD, CALVARY CORNER, POOTHOLE, THRISSUR. 5. SHRI. JIJU T.O., S/O.T.D.OUSEPH, M/S.EMMANUVAL SILKS, EMMANUVAL BUILDINGS, BEHIND RAILWA Y STATION ROAD, CALVARY CORNER, POOTHOLE, THRISSUR. BY SRI.T.M.SREEDHARAN (SENIOR ADVOCATE) ADVS. SRI.V.P.NARAYANAN SRI.L.RAJESH NARAYAN RESPONDENT(S)/STATE AND COMPLAINANT : ------------------------------------------------------------------------ 1. THE ADDITIONAL COMMISSIONER OF INCOME TAX (TDS), C.R.BUILDING, I.S.PRESS ROAD, ERNAKULAM, COCHIN-682 018. ..2/- ..2.. Crl.MC.No. 3467 of 2015 ------------------------------------ 2. THE COMMISSIONER OF INCOME TAX (TDS), C.R.BUILDING, I.S PRESS ROAD, ERNAKULAM, COCHIN-682 018. 3. THE COMMISSIONER OF INCOME TAX (APPEALS)-III, 7TH FLOOR, KERA BHAV AN, S.R.V.H.S ROAD, COCHIN-682 016. 4. THE INCOME TAX OFFICER (TDS), THRISSUR, INCOME TAX OFFICE (TDS), AYAKKAR BHAVAN, S.T.NAGAR, THRISSUR-1. 5. THE ASSISTANT COMMISSIONER OF INCOME TAX, RANGE 2(1), THRISSUR. 6. THE STATE OF KERALA, REPRESENTED BY PUBLIC PROSECUTOR, HIGH COURT OF KERALA, KOCHI-682 031. R1 TO R5 BY ADV. SRI.JOSE JOSEPH, S.C ADV. SRI.CHRISTOPHER ABRAHAM, S.C ADV. SRI.K.M.V.PANDALAI, S.C R6 BY PUBLIC PROSECUTOR SMT.MAY A THIS CRIMINAL MISC. CASE HAVING BEEN FINALLY HEARD ON 11-01-2016, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: Msd. Crl.MC.No. 3467 of 2015 ------------------------------------ APPENDIX PETITIONER(S)' ANNEXURES : ANNEXURE A : TRUE COPY OF ORDER DATED 23-08-2013 PASSED BY THE JOINT COMMISSIONER OF INCOME TAX (TDS), KOCHI FOR THE FINANCIAL YEAR 2011-2012. ANNEXURE B : TRUE COPY OF ORDER DATED 30-05-2014 PASSED BY THE ADDITIONAL COMMISSIONER OF INCOME TAX (TDS), KOCHI. ANNEXURE C : TRUE COPY OF NOTICE DATED 09-04-2015 ISSUED BY THE ADDITIONAL COMMISSIONER OF INCOME TAX (TDS), KOCHI. ANNEXURE D : TRUE COPY OF NOTICE DATED 09-04-2015 ISSUED BY THE ADDITIONAL COMMISSIONER OF INCOME TAX (TDS), KOCHI FOR THE FINANCIAL YEAR 2012-2013. ANNEXURE E : TRUE COPY OF SHOW CAUSE NOTICE DATED 20-03-2013 ISSUED BY THE 1ST RESPONDENT. ANNEXURE F : TRUE COPY OF REPLY SUBMITTED BY THE PETITIONER IN APRIL 2013 TO THE 1ST RESPONDENT. ANNEXURE G : TRUE COPY OF CIRCULAR NO.551 DATED 23-01-1990. ANNEXURE H : CERTIFIED COPY OF COMPLAINT C.C.NO.193 OF 2015 FILED BY THE 4TH RESPONDENT. ANNEXURE I : TRUE COPY OF COMPLAINT CC.NO.194 OF 2015 FILED BY THE 4TH RESPONDENT. ANNEXURE J : TRUE COPY OF SUMMON DATED 01-04-2015 ISSUED TO THE FIRST PETITIONER BY THE ACJM (ECONOMIC OFFENCES), KOCHI-16. ANNEXURE J(A) : TRUE COPY OF SUMMON DATED 01-04-2015 ISSUED TO THE SECOND PETITIONER BY THE ACJM (ECONOMIC OFFENCES), KOCHI-16. ANNEXURE J(B) : TRUE COPY OF SUMMON DATED 01-04-2015 ISSUED TO THE 3RD PETITIONER BY THE ACJM (ECONOMIC OFFENCES), KOCHI-16. ANNEXURE J(C) : TRUE COPY OF SUMMON DATED 01-04-2015 ISSUED TO THE 4TH PETITIONER BY THE ACJM (ECONOMIC OFFENCES), KOCHI-16. Crl.MC.No. 3467 of 2015 ------------------------------------ ANNEXURE J(D) : TRUE COPY OF SUMMON DATED 01-04-2015 ISSUED TO THE 5TH PETITIONER BY THE ACJM (ECONOMIC OFFENCES), KOCHI-16 ANNEXURE K : TRUE COPY OF ORDER DATED 30-07-2014 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-III, KOCHI. ANNEXURE L : TRUE COPY OF REPRESENTATION DATED 4TH SEPTEMBER 2014 SUBMITTED BY THE PETITIONER BEFORE THE 3RD RESPONDENT. RESPONDENT(S)' ANNEXURES : NIL //TRUE COPY// P.A.TO JUDGE. Msd. B. KEMAL PASHA, J. ===================== CRL.M.C.No.3467 of 2015 ====================== Dated this the 11th day of January, 2016 O R D E R It has been reported that an appeal is pending before the 3rd respondent in the matter. The prosecution has been initiated for the offence under Section 276B of the Income T ax Act, 1961. 2. According to the petitioners, there are sufficient reasons for not depositing the amount in time, and a correct decision can be taken in the matter only on the final decision in the appeal against penalty . On going through the matter and on hearing either side, this Court is of the view that the prosecution proceedings before the court CRL.M.C.No.3467 of 2015 -: 2 :- below shall stand stayed till the disposal of the appeal. In the result, this Crl.M.C. is disposed of by ordering that the prosecution proceedings before the court below in the matter shall stand stayed till the disposal of the appeal. Sd/- B. KEMAL P ASHA, JUDGE. DSV/11/1/16 // True Copy // P .A. T o Judge "