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

Crl.MC/3507/2015

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 the penalty imposed on them should be resolved first to determine the correctness of their actions. The respondents included various officials from the Income Tax Department and the State of Kerala. The High Court of Kerala, after hearing the arguments, decided to stay the prosecution proceedings until the appeal's disposal.

• Counselvise Citation: [2016] 140 COUNSELVISE.COM (IT) 763281 (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: K M V PANDALAI; JOSE JOSEPH; P MAYA
• Assessee Lawyers: T M SREEDHARAN; L NARAYAN; V P NARAYANAN
• 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. 3507 of 2015 () --------------------------- CC. NO.194/2015 OF ADDITIONAL CHIEF JUDICIAL MAGISTRATE COURT (ECONOMIC OFFENCES), RAVIPURAM, KOCHI-16. ........ PETITIONERS/ACCUSED: ---------------------------------------- 1. M/S. EMMANUVAL SILKS, EMMANUVAL BUILDINGS, BEHIND RAILWA Y STATION ROAD, CALV ARY CORNER, POOTHOLE, THRISSUR, REPRESENTED BY ITS MANAGING PARTNER SRI.T.O. BYJU. 2. BYJU T.O., S/O.T.O. OUSEPH, PARTNER, M/S. EMMANUVAL SILKS, EMMANUVAL BUILDINGS, BEHIND RAILWA Y STATION ROAD, CALV ARY CORNER, POOTHOLE, THRISSUR. 3. SHAJU T.O. @ SAJU, S/O.T.D. OUSEPH, M/S. EMMANUVAL SILKS, EMMANUVAL BUILDINGS, BEHIND RAILWA Y STATION ROAD, CALV ARY CORNER, POOTHOLE, THRISSUR. 4. RAJU T.O., S/O.T.D. OUSEPH, M/S. EMMANUVAL SILKS, EMMANUVAL BUILDINGS, BEHIND RAILWA Y STATION ROAD, CALVARY CORNER, POOTHOLE, THRISSUR. 5. JIJU T.O, S/O.T.D. OUSEPH, M/S. EMMANUVAL SILKS, EMMANUVAL BUILDINGS, BEHIND RAILWA Y STATION ROAD, CALV ARY CORNER, POOTHOLE, THRISSUR. BY SRI.T.M.SREEDHARAN, SENIOR ADVOCATE. ADVS. SRI.L.RAJESH NARAYAN, SRI.V.P.NARAYANAN. RESPONDENTS/STATE AND COMPLAINANT: ----------------------------------------------------------------- 1. THE ADDITIONAL COMMISSIONER OF INCOME TAX (TDS), C.R. BUILDINGS, I.S. PRESS ROAD, ERNAKULAM, COCHIN - 682 018. Crl.MC.No. 3507 of 2015 2. THE COMMISSIONER OF INCOME TAX (TDS), C.R. BUILDINGS, 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 THE PUBLIC PROSECUTOR, HIGH COURT OF KERALA, KOCHI- 682 031. R1 TO R5 BY ADV. SRI.K.M.V.PA NDALAI, SC, ADV. SRI.JOSE JOSEPH, SC. R6 BY PUBLIC PROSECUTOR SMT.P. MAYA. THIS CRIMINAL MISC. CASE HAVING BEEN FINALLY HEARD ON 11-01-2016, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: rs. Crl.MC.No. 3507 of 2015 APPENDIX PETITIONER'S ANNEXURES:- ANNEXURE A COPY OF THE ORDER DATED 23/08/2013 PASSED BY THE JOINT COMMISSIONER OF INCOME TAX (TDS), KOCHI FOR THE FINANCIAL YEAR 2011-12. ANNEXURE B COPY OF THE ORDER DATED 30/05/2014 PASSED BY THE ADDITIONAL COMMISSIONER OF INCOME TAX (TDS), KOCHI. ANNEXURE C COPY OF THE NOTICE DATED 09/04/2015 ISSUED BY THE ADDITIONAL COMMISSIONER OF INCOME TAX (TDS), KOCHI. ANNEXURE D COPY OF THE NOTICE DATED 09/04/2015 ISSUED BY THE ADDITIONAL COMMISSIONER OF INCOME TAX (TDS), KOCHI FOR THE FINANCIAL YEAR 2012-13. ANNEXURE E COPY OF THE SHOW CAUSE NOTICE DATED 20/03/2013 ISSUED BY THE 1ST RESPONDENT. ANNEXURE F COPY OF THE REPLY SUBMITTED BY THE PETITIONER IN APRIL, 2013 TO THE 1ST RESPONDENT. ANNEXURE G COPY OF THE CIRCULAR NO.551 DATED 23/01/1990. ANNEXURE H COPY OF THE COMPLAINT-C.C. NO.193/2015 FILED BY THE 4TH RESPONDENT. ANNEXURE I CERTIFIED COPY OF THE COMPLAINT-C.C. NO.194/2015 FILED BY THE 4TH RESPONDENT. ANNEXURE J COPY OF THE SUMMON DATED 01/04/2015 ISSUED TO THE FIRST PETITIONER BY THE ACJM (ECONOMIC OFFENCES), KOCHI-16. ANNEXURE J(A) COPY OF THE SUMMON DATED 01/04/2015 ISSUED TO THE SECOND PETITIONER BY THE ACJM (ECONOMIC OFFENCES), KOCHI-16. ANNEXURE J(B) COPY OF THE SUMMON DATED 01/04/2015 ISSUED TO THE SECOND PETITIONER BY THE ACJM (ECONOMIC OFFENCES), KOCHI-16. ANNEXURE J(C) COPY OF THE SUMMON DATED 01/04/2015 ISSUED TO THE SECOND PETITIONER BY THE ACJM (ECONOMIC OFFENCES), KOCHI-16. ....2/- Crl.MC.No. 3507 of 2015 ANNEXURE J(D) COPY OF THE SUMMON DATED 01/04/2015 ISSUED TO THE SECOND PETITIONER BY THE ACJM (ECONOMIC OFFENCES), KOCHI-16. ANNEXURE K COPY OF THE ORDER DATED 30/07/2014 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-III, KOCHI. ANNEXURE L COPY OF THE REPRESENTATION DATED 4TH SEPTEMBER 2014 SUBMITTED BY THE PETITIONER BEFORE THE 3RD RESPONDENT. RESPONDENT'S ANNEXURES:- NIL. //TRUE COPY// P.S. TO JUDGE rs. B. KEMAL PASHA, J. ===================== CRL.M.C.No.3507 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.3507 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 "