INFORPARKS KERALA V. THE UNION OF INDIA,

WP(C)/9744/2019

AI Insights

The case involves Infoparks Kerala Athulya, represented by its manager-finance, Mr. Santhosh V., challenging a notice (Ext.P1) issued by the Deputy Commissioner of Income Tax (Exemption) which initiated recovery steps against the petitioner's bank accounts due to outstanding tax demands. The petitioner argued that refund applications for previous assessment years, which could offset the tax demand, were pending and should be considered before any recovery actions. The court initially ordered a status quo to prevent further recovery actions and later directed the second respondent to expedite the consideration of the petitioner's refund applications.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 722253 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 04-06-2019
• Assessment Year: misc
• Laws Referred To: Section 226(3) of the Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: S KRISHNA; GEORGE VARGHESE; CHRISTOPHER ABRAHAM
• Assessee Lawyers: M NAMBIAR; JOSON MANAVALAN; K MATHAI; KURYAN THOMAS; PAULOSE ABRAHAM
• Keywords: Bank accounts; Income Tax; Recovery Steps; Refund applications; Writ petition
• Section: 226(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MRS. JUSTICE ANU SIVARAMAN TUESDAY, THE 04TH DAY OF JUNE 2019 / 14TH JYAISHTA, 1941 WP(C).No. 9744 of 2019 PETITIONER: INFOPARKS KERALA ATHULYA, INFOPARK KOCHI POST, KAKKANAD, KOCHI- 682042, REPRESENTED BY ITS MANAGER-FINANCE, MR.SANTHOSH.V. BY ADVS. SRI.M.GOPIKRISHNAN NAMBIAR SRI.JOSON MANAVALAN SRI.K.JOHN MATHAI SRI.KURYAN THOMAS SRI.PAULOSE C. ABRAHAM RESPONDENT: 1 THE UNION OF INDIA, REPRESENTED BY THE SECRETARY, MINISTRY OF FINANCE (DEPARTMENT OF REVENUE), NORTH BLOCK, NEW DELHI- 110001. 2 THE DEPUTY COMMISSIONER INCOME TAX (EXEMPTION), 2ND FLOOR, SAN JUAN TOWER, I.S.PRESS ROAD, KOCHI- 682018. 3 SOUTH INDIAN BANK LTD., DOOR NO.462/B, TRANS AVENUE, NGO QUARTERS-MAVELIPURAM ROAD, KAKKANAD, KOCHI- 682030, REPRESENTED BY ITS BRANCH MANAGER, 4 FEDERAL BANK LTD., GROUND FLOOR, VISMAYA BUILDING, INFOPARK CAMPUS, KAKKANAD, KOCHI- 682030, REPRESENTED BY ITS BRANCH MANAGER. BY ADVS. KUM.S.KRISHNA SRI. GEORGE VARGHESE, SC SRI. CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.06.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 9744 of 2019 2 JUDGMENT The petitioner has approached this Court challenging Ext.P1 notice and seeking direction to the respondents not to proceed against the Savings Account and Fixed deposit of the petitioner maintained with the 3rd and 4th respondent Banks. 2. It is submitted by the learned counsel for the petitioner that the refund applications preferred by the petitioner are pending before the respondents and the refunds can be adjusted towards the demand of tax. It is stated that in the meanwhile, the respondents are initiating recovery steps as against the bank accounts of the petitioner held with 3rd and 4th respondents. 3. While admitting the writ petition, this Court had directed that status-quo shall be maintained and no further amounts shall be WP(C).No. 9744 of 2019 3 recovered by the respondents on the strength of Ext.P1. 4. The learned counsel for the petitioner submits that Ext.P9 representation is preferred before the second respondent and the same is liable to be considered and disposed of without further delay. It is further stated that if Ext.P9 is considered and a proper order is passed thereon, there will be no amount to be paid by the petitioner on the strength of Ext.P1 notice. 5. Having considered the contentions advanced, I am of the opinion that Ext.P9 request made by the petitioner is liable to be considered by the second respondent and appropriate action taken thereon before any steps are taken to proceed with Ext.P1. Accordingly, there will be a direction to the second respondent to take up, consider and pass appropriate orders on Ext.P9 request made by the petitioner without further WP(C).No. 9744 of 2019 4 delay. Till such time as orders are passed on Ext.P9, the further proceedings on the basis of Ext.P1 shall stand deferred. The writ petition is ordered accordingly. SD/- ANU SIVARAMAN ACM / 7.6.2019 JUDGE WP(C).No. 9744 of 2019 5 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE NOTICE DATED 25.03.2019 UNDER SECTION 226(3) ISSUED BY THE 2ND RESPONDENT TO THE 3RD RESPONDENT BANK. EXHIBIT P2 A TRUE COPY OF THE ORDER DATED 28.12.2018 PASSED BY THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 2016-17. EXHIBIT P3 A TRUE COPY OF REFUND STATUS FOR THE ASSESSMENT YEAR 2016-17 AS AVAILABLE IN THE TAX INFORMATION NETWORK OF THE INCOME TAX DEPARTMENT. EXHIBIT P4 A TRUE COPY OF THE ITRV FOR THE ASSESSMENT YEAR 2017-18 FILED ON 15.03.2018. EXHIBIT P5 A TRUE COPY OF THE REFUND STATUS FOR THE ASSESSMENT YEAR 2017-18 AS AVAILABLE IN THE TAX INFORMATION NETWORK OF THE INCOME TAX DEPARTMENT. EXHIBIT P6 A TRUE COPY OF ITRV FOR THE YEAR 2018- 19, FILED ON 08.03.2019. EXHIBIT P7 A TRUE COPY OF THE REFUND STATUS FOR THE ASSESSMENT YEAR 2018-19 AS AVAILABLE IN THE TAX INFORMATION NETWORK OF THE INCOME TAX DEPARTMENT. EXHIBIT P8 A TRUE COPY OF THE REQUEST DATED 22.02.2019 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P9 A TRUE COPY OF THE LETTER DATED 04.03.2019 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. "