JANATHA KURIES & LOANS PRIVATE LTD V. THE INCOME TAX OFFICER

WP(C)/21491/2022

AI Insights

Janatha Kuries & Loans Private Ltd., represented by its managing director, Mr. Binoy P.V., filed a writ petition against the Income Tax Officer and the Assistant Commissioner of Income Tax, Circle 1(1), Thrissur. The petitioner contested the demands raised for the assessment year 2006-2007, claiming that advance tax payments and TDS amounts were not properly credited. The respondent's counsel pointed out that the petitioner had quoted the TAN instead of the PAN while remitting the advance tax, which prevented the crediting of the payments. The petitioner's counsel argued that the correct PAN was provided to the bank, and the error occurred during the bank's transaction with the tax department. The court decided to direct the 2nd respondent to address the rectification application and hold penalty proceedings in abeyance until the rectification is resolved.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 760289 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 13-07-2022
• Assessment Year: misc
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: ANIL NAIR; TELMA EDATHARA; VINEETA KRISHNAN; P K BIJU
• Keywords: Advance tax; Penalty proceedings; Rectification; TDS
• Section: 221(1)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. WEDNESDAY, THE 13TH DAY OF JULY 2022 / 22ND ASHADHA, 1944 WP(C) NO. 21491 OF 2022 PETITIONER/S: JANATHA KURIES & LOANS PRIVATE LTD. IX/115-A, THAIPARAMBIL SHOPPING COMPLEX VYSSERY, KIZHOOR, KUNNAMKULAM, THRISSUR, KERALA 680523 REPRESENTED BY ITS MANAGING DIRECTOR, MR BINOY P.V. BY ADVS. ANIL D. NAIR TELMA RAJU EDATHARA VINEETA KRISHNAN(K/1088/2021) P.K.BIJU RESPONDENT/S: 1 THE INCOME TAX OFFICER, THRISSUR - 680 001. 2 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1(1), AAYKAR BHAVAN, S.T. NAGAR, THRISSUR - 680 001. OTHER PRESENT: SRI. JOSE JOSEPH (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13.07.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No.21491/22 2 JUDGMENT Petitioner has approached this Court being aggrieved by the fact that certain demands have been raised in respect of the assessment year 2006-2007 without properly giving credit to certain amounts paid as advance tax for that year and without giving credit to certain amounts which represent the tax deducted at source in respect of the income of the petitioner. 2. When this matter is taken up for consideration today, the learned Standing Counsel appearing for the respondent department states that even on the petitioner’s own showing, while remitting the advance tax, the petitioner had quoted his TAN instead of PAN. It is submitted that unless the above anomaly is corrected by the petitioner, the concerned officer will not be in a position to offer any credit to the petitioner of advance tax paid. 3. The learned counsel for the petitioner states that the petitioner had actually given the correct PAN to his bank and the mistake was committed by the bank while remitting the amount to the respondent department. 4. The learned Standing Counsel points out that the petitioner has already approached the assessing authority with an application for rectification (Ext.P5) and the same can be directed to be disposed of, after affording an opportunity of hearing to the petitioner. It is also submitted that penalty proceedings initiated against the petitioner for non payment of demands can be kept in abeyance till a decision is taken on the application for rectification. W.P.(C).No.21491/22 3 5. Taking note of the submissions of the learned counsel appearing for the petitioner and the learned Standing Counsel for the respondents, I am of the view that this writ petition can be disposed of directing the 2nd respondent to consider and pass orders on Ext.P5 application for rectification, after affording an opportunity of hearing to the petitioner. It will be open to the petitioner to correct any mistake committed while remitting advance tax so that he gets a proper credit of advance tax paid. It will also be open to the petitioner to bring to the notice of the 2nd respondent the fact that there are TDS amounts, which have not been given credit to, while finalising the demands against the petitioner. The 2nd respondent shall endeavour to dispose of Ext.P5 within a period of two months from the date of receipt of a certified copy of this judgment. Till such time as orders are passed on Ext.P5, any proceedings for imposition of penalty against the petitioner shall be kept in abeyance. It is clarified that this relief applies only to assessment year 2006- 2007 and not to any other assessment year which may be covered by the notices issued. The writ petition is disposed of as above. Sd/- GOPINATH P. JUDGE okb/13.7 //True copy// P.S. to Judge W.P.(C).No.21491/22 4 APPENDIX OF WP(C) 21491/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE RETURN OF INCOME FOR THE A.Y. 2006-07 Exhibit P2 TRUE COPY OF THE INTIMATION ISSUED BY THE IST RESPONDENT TO THE PETITIONER. Exhibit P3 TRUE COPY OF THE BANK CHALLAN EVIDENCING THE PAYMENT OF ADVANCE TAX OF THE PETITIONER. Exhibit P4 TRUE COPY OF THE TDS CERTIFICATES ALONG WITH THE INDEMNITY BOND Exhibit P5 TRUE COPY OF THE APPLICATION FILED BY THE PETITIONER TO THE 2ND RESPONDENT ON 21.06.2011. Exhibit P5 A TRUE COPY OF THE APPLICATION FILED BY THE PETITIONER TO THE 2ND RESPONDENT ON 28.07.2011. Exhibit P5 B TRUE COPY OF THE APPLICATION FILED BY THE PETITIONER TO THE 2ND RESPONDENT ON 30.05.2013. Exhibit P5 C TRUE COPY OF THE APPLICATION FILED BY THE PETITIONER TO THE 2ND RESPONDENT ON 09.03.2015. Exhibit P5 D TRUE COPY OF THE APPLICATION FILED BY THE PETITIONER TO THE 2ND RESPONDENT ON 19.03.2020. Exhibit P6 TRUE COPY OF THE NOTICE U/S.221(1) DATED 04.03.2020 ISSUED BY THE 1S T RESPONDENT. Exhibit P7 TRUE COPY OF THE ACKNOWLEDGMENT EVIDENCING THE FILING OF THE REPLY TO THE NOTICE DATED 4.3.2020 Exhibit P8 TRUE COPY OF THE LETTER DATED 31.03.2022 ISSUED BY THE PETITIONER "