KERALA FINANCIAL CORPORATION V. COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/11009/2012

AI Insights

The case involves the Kerala Financial Corporation, which filed a writ petition against the Commissioner of Income Tax (Appeals) and other tax officials concerning a tax demand assessed at INR 45,54,15,831. The petitioner contested the appeal process and the interim order requiring a 50% payment of the tax demand, arguing that the appeal had a strong chance of success and the demand was unsustainable. The court considered the petitioner's status as a statutory corporation and the substantial reduction in the tax demand when deciding to modify the payment condition.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 767700 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 11-05-2012
• Assessment Year: misc
• Other Referred Cases: W.P(C)669 of 2012
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: MOLLY JACOB
• Keywords: Assessment; Income Tax; Statutory corporation; Stay Application
• Section: 154; 246 A

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN FRIDAY, THE 11TH DAY OF MAY 2012/21ST VAISAKHA 1934 WP(C).No. 11009 of 2012(A) -------------------------- PETITIONER: ------------- KERALA FINANCIAL CORPORATION REP.BY ITS CHIEF MANAGER BRANCH OFFICE KALOOR COCHIN 682017 BY ADV. SRI.MOLLY JACOB, SC, KERALA FINANCIAL CO RESPONDENTS: -------------- 1. COMMISSIONER OF INCOME TAX (APPEALS) 2ND FLOOR AAYAKAR BHAVAN KOWDIAR THIRUVANANTHAPURAM 695003 2. THE JOINT COMMISSIONER OF INCOME TAX RANGE 1 2ND FLOOR AAYAKAR BHAVAN KOWDIAR THIRUVANANTHAPURAM 695003 3. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE (1) THIRUVANANTHAPURAM O/O. THE ADDL.COMMISSIONER OF INCOME TAX RANGE 1 AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM 695003 BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11-05-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 11009 of 2012(A) APPENDIX PETITIONER'S EXHIBITS: EXT.P1 : TRUE COPY OF THE ORDER DATED 31.12.2010 OF THE 2ND RESPONDENT ASSESSING TAXABLE INCOME AS ` 45,54,15,831/- EXT.P2 : TRUE COY OF THE ORDER DT. 6.6.2011UNDER SECTION 154 OF THE INCOME TAX, 1961 EXT.P3 : TRUE COPY OF THE LETTER DATED 21.10.2011 ISSUED BY THE 3RD RESPONDENT EXT.P4 : TRUE COPY OF THE APPEAL BEFORE THE 1ST RESPONDENT AS PROVIDED UNDER SECTION 246(a) OF THE INCOME TAX ACT,1961 EXT.P5 : TRUE COPY OF THE PETITION FOR STAYING THE DEMAND AS PER EXHIBITS P1 TO P3 EXT.P6 : TRUE COPY OF THE JUDGMENT DT. 18.01.2012 IN W.P(C)669 OF 2012 PASSED BY THIS HON'BLE COURT. EXT.P7 : TRUE COPY OF THE ORDER DT. 2.4.2012 OF THE 1ST RESPONDENT EXT.P8 : TRUE COY OF THE ORDER DT. 10.4.2012 PASSED BY THE ASSESSING OFFICER EXT.P9 : PHOTOCOPY OF THE NOTICE ASSESSING INCOME OF RS. 5,78,34,908/- RESPONDENTS' EXHIBITS: NIL //TRUE COPY// P.A. TO JUDGE jma K. VINOD CHANDRAN, J - - - - - - - - - - - - -- - - - - - - - - - - - - - - - W.P(C) No. 11009 OF 2012 - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 11th day of May, 2012 J U D G M E N T The petitioner is aggrieved by the disposal of stay application in the appeal filed by the petitioner by Ext.P7 directing payment of 50% of the demand excluding the demand of bad debts. The petitioner contends that the petitioner has an excellent case in appeal and the appeal itself has to be considered expeditiously in which event the demand would not be sustainable at all. The learned Standing Counsel for the Revenue opposes the prayer and points out that the demand was reduced to only 50% of the actual amounts due, which itself is substantial reduction. In the facts and circumstances of the case as also noticing the fact that the petitioner is a statutory corporation, I feel that there can be some modification regarding the condition. It is directed that the recovery steps shall be kept in abeyance on the petitioner paying `1.5 crores within a period of three months starting from 15.6.2012. Writ petition is disposed of as above. Sd/- (K. VINOD CHANDRAN, JUDGE) jma //true copy// P.A to Judge "