M/S. NETWORK SYSTEMS V. THE ASSISTANT COMMISSIONER OF INCOME TAX

WP(C)/10077/2018

AI Insights

The case involves M/S. Network Systems and Technologies Ltd., a company that was amalgamated with SFO Technologies (P) Ltd., and is represented by its company secretary, K. Padmanabhan. The petitioner challenged the notices issued by the Tax Recovery Officer (TDS), Kochi, alleging that the income tax deducted at source by the erstwhile company was not remitted, as per the Ext.P1 series of notices dated 29/01/2018. The petitioner contended that the amounts were indeed remitted but were omitted in the respective 26A Forms. The primary grievance was the inaction of the competent authority regarding the rectification request (Ext.P6) for the 26A forms.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 758723 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 28-03-2018
• Assessment Year: misc
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM; JOSE JOSEPH
• Assessee Lawyers: ANIL NAIR; R SREEJITH; P PAUL; MEKHALA BENNY; ASISH MOHAN; MARY JOSSY; ACHYUT PADMARAJ
• Keywords: Income Tax; Rectification; TDS; 26A Forms

Judgement Text

" IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE P.B.SURESH KUMAR WEDNESDAY, THE 28TH DAY OF MARCH 2018 / 7TH CHAITHRA, 1940 WP(C).No. 10077 of 2018 PETITIONER(S) -------------- M/S. NETWORK SYSTEMS AND TECHNOLOGIES LTD., STONE HOUSE, MARKET ROAD, ALUVA, ERNAKULAM-683101, SINCE AMALGAMATED WITH SFO TECHNOLOGIES (P) LTD., STONE HOUSE, MARKET ROAD, ALUVA, REPRESENTED BY COMPANY SECRETARY, K.PADMANABHAN. BY ADVS.SRI.ANIL D. NAIR SRI.R.SREEJITH SRI.P.JINISH PAUL KUM.MEKHALA M.BENNY SRI.ASISH MOHAN SMT.MARY JOSSY SRI.ACHYUT K PADMARAJ RESPONDENT(S): ------------- 1. THE ASSISTANT COMMISSIONER OF INCOME TAX, TDS RANGE, KOWDIAR, TRIVANDRUM-695001. 2. TAX RECOVERY OFFICER (TDS), KOCHI-682002. BY ADVS.SRI.CHRISTOPHER ABRAHAM,SC SRI.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28-03-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: TS WP(C).No. 10077 of 2018 (H) -------------------------- APPENDIX PETITIONER(S)' EXHIBITS ------------------------ EXHIBIT P1- TRUE COPY OF THE NOTICE TR.NO.25/TRO (TDS)/KOCHI-2/2017-18 DATED 29/01/2018. EXHIBIT P1(A)- TRUE COPY OF THE NOTICE TR.NO.26/TRO (TDS)/KOCHI-2/2017-18 DATED 29/01/2018. EXHIBIT P1(B)- TRUE COPY OF THE NOTICE TR.NO.27/TRO (TDS)/KOCHI-2/2017-18 DATED 29/01/2018. EXHIBIT P1(C)- TRUE COPY OF THE NOTICE TR.NO.28/TRO (TDS)/KOCHI-2/2017-18 DATED 29/01/2018. EXHIBIT P1(D)- TRUE COPY OF THE NOTICE TR.NO.29/TRO (TDS)/KOCHI-2/2017-18 DATED 29/01/2018. EXHIBIT P1(E)- TRUE COPY OF THE NOTICE TR.NO.30/TRO (TDS)/KOCHI-2/2017-18 DATED 29/01/2018. EXHIBIT P1(F)- TRUE COPY OF THE NOTICE TR.NO.31/TRO (TDS)/KOCHI-2/2017-18 DATED 29/01/2018. EXHIBIT P1(G)- TRUE COPY OF THE NOTICE TR.NO.32/TRO (TDS)/KOCHI-2/2017-18 DATED 29/01/2018. EXHIBIT P2- TRUE COPY OF THE ORDER DATED 12/01/2016 IN COMPANY PETITION NO.30/2015. EXHIBIT P3- TRUE COPY OF THE LETTER DATED 11/04/2011 ADDRESSED TO THE 1ST RESPONDENT. EXHIBIT P4 TRUE COPY OF THE LETTER DATED 19.8.2013 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P5 TRUE COPY OF THE LETTER DATED 9.9.2013 SUBMITTED BY THE PETITIONER. EXHIBIT P6 TRUE COPY OF THE LETTER DATED 18.6.2014 SUBMITTED BY THE PETITIONER. EXHIBIT P7 TRUE COPY OF THE LETTER DATED 15.2.2018 SUBMITTED BY THE PETITIONER. RESPONDENT(S)' EXHIBITS - NIL ------------------------------ /TRUE COPY/ PS TO JUDGE TS 04/04/2018 P.B.SURESH KUMAR, J. -------------------------------------------- W.P.(C).No.10077 of 2018 --------------------------------------------------------------- Dated this the 28th day of March, 2018 J U D G M E N T Petitioner is a company which took over the company, M/s.Network Systems and T echnologies Limited. Proceedings have been initiated against M/s.Network Systems and T echnologies Limited, on the basis that the income tax deducted at source by M/s.Network Systems and T echnologies Limited have not been remitted by them. Since the said company was taken over, Ext.P1 series notices issued in this connection have been served on the petitioner company. The case of the petitioner is that the amounts mentioned in Ext.P1 series demands are amounts remitted by the erstwhile company, viz, M/s.Network Systems and T echnologies Limited, though the said W.P.(c).No.10077 of 2018 : 2 : payments have been omitted to be mentioned in the respective 26A Forms. The petitioner, therefore, preferred Ext.P6 representation seeking rectification of the mistakes in the concerned 26A forms. The grievance of the petitioner in the writ petition concerns the inaction on the part of the competent authority in dealing with Ext.P6 representation. 2. Heard the learned counsel for the petitioner as also the learned Standing Counsel for the respondents. 3. Having regard to the facts and circumstances of the case, the writ petition is disposed of directing the first respondent to consider Ext.P6 representation in accordance with law, within two months from the date of receipt of a copy of this judgment. Till then, it is directed that proceedings in furtherance to Ext.P1 series notices shall not be taken. Sd/- P.B.SURESH KUMAR JUDGE rsr "